It’s not overriding the legal system, it willfully sidestepping it. But obligating the contracted party to agree. The issue of course is that Hertz (in this case) can put whatever random requirements into the contract, and you can’t arbitrarily strike them. You still need/want their service.

That said, just because there’s an arbitration clause in the contract doesn’t mean you’re absolutely stuck. You can hire a lawyer and try to get out of it. They’re trying to keep you from doing something like that.