The governments all around the world are probably in favor of it, because their big “donors” want it and it lowers costs for the judicial system for them. It’s a win-win from their perspective.
The real reason for arbitration is that it usually costs hundreds to initiate and the rules can be murky. In comparison most places in America you can file a small claims suit for $20 and are given help by the court/government.
It also creates no precedent. You lose, you pay out one angry customer, but the next one who tries, you get a fresh attempt to convince the arbitrators you were right.
In a real court, the first loss woukd be leveraged against you by everyone else in similar straits, even if it wasn’t a class action.
NAL and stare decisis is definitely not as strict in arbitration but arbitration generally has to follow state court rules or it will get invalidated including use of precedent. Most court decisions never get published anyway so its essentially the same loss.
I hadn’t considered small claims (though I’ve filed, and won, several small claims cases myself).
It would be great to teach people how to use the small-claims system - Imagine these companies having to deal with these courts in every state.
They’d probably default (not show up), and have judgements against them, then the complainant would be stuck trying to enforce the claim (it’s not automatic). In the end, Corp would see this as a win… Until it became a news story that “Corp X has hundreds of unresolved judgements”
I am sure everybody’s situation is different but luckily for me as a New York Resident, between long arm statues and the interconnectedness of banks/Wall st everybody has to pay or forfeit their bank access 🤣
It kind of blows my mind that forced arbitration is legal at all.
Somone said that it isn’t and isn’t enforceable to but no-one has the time money or will to fuck around with that.
Depends on the country. This wiki article goes over a bunch of countries. https://en.m.wikipedia.org/wiki/Arbitration_clause
The governments all around the world are probably in favor of it, because their big “donors” want it and it lowers costs for the judicial system for them. It’s a win-win from their perspective.
The real reason for arbitration is that it usually costs hundreds to initiate and the rules can be murky. In comparison most places in America you can file a small claims suit for $20 and are given help by the court/government.
It also creates no precedent. You lose, you pay out one angry customer, but the next one who tries, you get a fresh attempt to convince the arbitrators you were right.
In a real court, the first loss woukd be leveraged against you by everyone else in similar straits, even if it wasn’t a class action.
NAL and stare decisis is definitely not as strict in arbitration but arbitration generally has to follow state court rules or it will get invalidated including use of precedent. Most court decisions never get published anyway so its essentially the same loss.
I hadn’t considered small claims (though I’ve filed, and won, several small claims cases myself).
It would be great to teach people how to use the small-claims system - Imagine these companies having to deal with these courts in every state.
They’d probably default (not show up), and have judgements against them, then the complainant would be stuck trying to enforce the claim (it’s not automatic). In the end, Corp would see this as a win… Until it became a news story that “Corp X has hundreds of unresolved judgements”
I am sure everybody’s situation is different but luckily for me as a New York Resident, between long arm statues and the interconnectedness of banks/Wall st everybody has to pay or forfeit their bank access 🤣
Corporations are people and they have so much more money and time to fund their interests than individuals do.
It’s just a term of a contract. It’s only “forced” insofar as both parties agree to require it in order to settle disputes.
Which shouldn’t be allowed in relation to consumer goods and services.
Meh, arbitration is cheaper and faster than actual litigation. I see clear advantages for both parties.