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Yes, it's called arbitration. You can contractually agree to settle disputes arising out of a contract in arbitration - where an arbitrator decides instead of
by bonyt 10y ago
Yes, it's called arbitration. You can contractually agree to settle disputes arising out of a contract in arbitration - where an arbitrator decides instead of a judge, the rules are abbreviated, and certain remedies (usually class actions, for example) are unavailable.
It's a lot faster, and a great way for sophisticated parties to handle disputes arising from their negotiated contracts, where they would otherwise spend years litigating in court.
In the consumer context, it's a bit more worrying - it usually appears in terms-of-service-type ageements that aren't negotiated (called adhesion contracts) where one party has no say in the matter. There are concerns over fairness - you don't have the same rights as you do in court, like you generally can't allege a class action, so small but systematic abuses go ignored because no one individual claimant can afford to sue for their individual injury. The drafter of the contract may also pick where the arbitration takes place, what the rules are, how the arbitrator is chosen. There are concerns that, since the corporate side may send an arbitrator a lot of work, the arbitrator may lean that way.
http://www.consumerreports.org/cro/shopping/the-arbitration-clause-hidden-in-many-consumer-contracts http://www.consumerreports.org/cro/shopping/the-arbitration-...
http://www.consumeradvocates.org/for-consumers/arbitration http://www.consumeradvocates.org/for-consumers/arbitration
https://en.m.wikipedia.org/wiki/Federal_Arbitration_Act https://en.m.wikipedia.org/wiki/Federal_Arbitration_Act
- d_theorist 10y agoThank you. Nicely explained.
- deleted 10y ago[deleted]