For example, this only applies when a flight is oversold - not for bad weather, other airline f***ups, if you volunteer, etc.
There are also a TON of exclusions based on airplane size, flight duration, origin/destinations, and so forth.
Yep, this is true. I was bumped off a flight and they wrote me a check for approx ~$1100. The sweeter part of the deal was they put me on the next flight and I only waited another couple hours. You do have gripe with them though.
For clarification, I did not throw a tantrum or scream at them. However, I did have to ask the airline if they were going to do anything about me being bumped off.