Introduction #
Mandatory arbitration is a controversial practice in which a business requires employees or consumers to agree to arbitrate legal disputes with the business rather than going to court. Although seemingly voluntary in that the employee or consumer can choose whether or not to sign the arbitration agreement, in practice signing the agreement is required if the individual wants to get the job or to obtain the cellphone, credit card, or other consumer product the business is selling. Mandatory arbitration agreements are legally enforceable and effectively bar employees or consumers from going to court, instead diverting legal claims into an arbitration procedure that is established by the agreement drafted by the company and required as a condition of employment or of doing business with it. 1
Arbitration is often heralded as a cheaper, faster, and more efficient mechanism to resolve disputes. In reality, arbitration serves to eliminate meaningful recourse for violations of contract or of the law.
Scope #
The goal of this website is to discuss forced arbitration and class action waivers in consumer and employment disputes. Other aspects of arbitration are discussed mostly in the context of how they affect these two pieces of the puzzle.
This site specifically excludes post-dispute arbitration. It also excludes attorney fee arbitration programs as administrated by state bar associations.
Bias #
It is a goal that this site have comprehensive and complete information about pre-dispute arbitration agreements. It isn’t intended to be biased in either direction except as the facts may lay out. To the extent that bias exists, the aim is in favour of fairness and consumer rights (rather than about arbitration per se).
Footnotes #
Colvin, A. J. S. (2018). The growing use of mandatory arbitration (144131; pp. 1–17). Economic Policy Institute. pp 1 ↩︎