What Does a Jury Trial Waiver in an MCA Mean?
A jury trial waiver means that if a dispute under the contract goes to court, a judge decides it instead of a jury. Both sides give up the right to a jury, and it's a standard clause in most commercial financing contracts.
What do you give up with a jury waiver?
In a jury trial, a group of citizens decides the facts. In a bench trial, the judge does. Business contracts often include a waiver because both sides want a faster, more predictable process. For you, it means that if a dispute reaches trial, your case is decided by a judge.
What does the clause usually look like?
The clause is often in capital letters or bold, near the end of the contract, with language like each party knowingly and voluntarily waives any right to a trial by jury. Funders make it conspicuous because courts look for clear, knowing waivers.
Is a jury trial waiver enforceable?
Courts in most states enforce jury waivers in commercial contracts when they're clear and conspicuous, though a few states treat pre-dispute jury waivers differently. How it applies to your contract depends on the governing law and where a case is heard. This is general information, not legal advice.
How does it fit with other clauses?
Many MCA contracts combine a jury waiver with an arbitration clause and a venue clause. Arbitration already removes the jury, so the waiver matters most for disputes that stay in court. Read all three together to understand how a dispute would actually be handled.
Should it stop you from signing?
For most owners, no. It's a normal part of business financing. What matters more is the price, the payment and the reconciliation and default terms. But it's still a right you're giving up, so know it's there.
Where does it sit in the paperwork?
You'll often see the waiver twice: once in the main agreement and again in the personal guarantee. That's because the guarantee is its own promise, and the funder wants the waiver to cover disputes about it too. If you're reading the contract, check both documents.
Why does it rarely matter in practice?
Most disputes between funders and merchants settle long before trial. Many go to arbitration. A small share reach a courtroom, and fewer still reach a trial. The waiver is worth knowing about, but for most owners the terms that really shape the relationship are the payment, the reconciliation clause and the default section.
How can Afterfirst help with this?
If you'd like us to point out the dispute clauses in an offer, call 877-FUND-654 or send the contract to info@afterfirstmca.com. For legal advice about what the clauses mean for you, a business attorney is the right call.
What else do owners ask about this?
- What does an arbitration clause in an MCA mean?
- What is a venue or forum clause in an MCA contract?
- Can a funder change my MCA terms after I sign?
More short answers on this topic are on the offers and contracts FAQ, and the MCA offer comparison runs the numbers for your own file.
Have a question we didn't answer?
Ask us on the call. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.