The idea of forcing people into arbitration has crept into every agreement and contract that Americans enter, and it's out of control. Congress needs to pass a law forbidding contracts from forcing individuals into arbitration.
The idea of forcing people into arbitration has crept into every agreement and contract that Americans enter, and it's out of control. Congress needs to pass a law forbidding contracts from forcing individuals into arbitration.
Congress, unfortunately, passed almost exactly the opposite law. The American courts traditionally disfavored binding arbitration, viewing it as a kind of illegitimate private court usurping the power of the proper courts. The Federal Arbitration Act (1925) overturned that norm with regard to federal-court cases, and the Supreme Court controversially ruled in 1984 [1] that the FAA preempted state anti-arbitration laws as well, which is when binding arbitration really began to take off.
[1] https://en.wikipedia.org/wiki/Southland_Corp._v._Keating
Hold on there. Let's not dismiss it out of hand - bypassing the court system and getting things resolved quickly has benefits. And I suspect the arbitration system is itself a response to some judicial excesses and the insane American lawsuit-happy culture.
I'm not saying there aren't problems, and the judicial system should be there, but it's not bad if people solve their own problems without government involvement.
Unlike a judge, an arbiter who finds against a company will not get their repeat business; that's an inherent conflict of interest.
the majority of people has a problem with rape going unpunished. but criminal justice is a bit fickle, because you cant just make it easier to convict people without having the false conviction rate shoot through the roof. and in a free society, youd rather err a bit on the side of letting some people who did commit crimes go.
Because it was binding arbitration and not traditional court proceedings, this judgment is not appealable. This compressed what would have been a 10-year drawn out and extremely costly process into five days. That's it!
There are more arguments against binding arbitration when it's an individual against a conglomerate - you get a biased arbitrator and you're sunk with no means of redress.
1) You can appeal arbitration rulings to the court system for a subset of situations (like misconduct or fraud by the arbiters)[1].
[0] http://webcache.googleusercontent.com/search?q=cache:VjU7-9v...
[1] https://apps.americanbar.org/litigation/committees/adr/artic...