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I think all the current replies to this comment are slightly off-mark. In an n-to-1 relationship, forced arbitration favours the 1 party. (An example is a compa
by ahmedalsudani 8y ago
I think all the current replies to this comment are slightly off-mark. In an n-to-1 relationship, forced arbitration favours the 1 party. (An example is a company and its customers or a company and its employees.)
The reason it favours the one party is that the cost of action is prohibitively high. As a customer/employee, suing your vendor/employer or taking them to arbitration requires you to dedicate much of your life to that cause. To them, it’s a small cost of doing business that has already been budgeted for.
The solution that was invented is class-action lawsuits. If an employer steals $1000 from every employee, it’s not worthwhile for them to sue. If market collusion raises the price of a RAM module by 10%, it’s not worthwhile for most customers to sue.
Forced arbitration removes that option. It is not possible to have class-action arbitration in any agreement I’ve read.
Another way of removing the option of class actions is class-action waivers, which are problematic for the same reason in my opinion.