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In Europe, mandatory arbitration are usually unlawful. European Union Council Directive 93/13 on Unfair Terms in Consumer Contracts creates a rebuttable presump
by why_Mr_Anderson 6y ago
In Europe, mandatory arbitration are usually unlawful. European Union Council Directive 93/13 on Unfair Terms in Consumer Contracts creates a rebuttable presumption that pre-dispute arbitration clauses in consumer contracts are invalid. The reason is the unequal bargaining power between the contracting parties in consumer contracts.
- LatteLazy 6y agoI don't necessarily support forced arbitration but... I would rather not pay the court fees because a bunch of people are upset their broker didn't accept their orders and want to waste the courts time over it.
- oblio 6y ago> I would rather not pay the court fees because a bunch of people are upset their broker didn't accept their orders and want to waste the courts time over it. I like how you trivialize it. Didn't they lose a ton of money, potentially their savings, because "their broker didn't accept their orders"? Repeat that several times in your head, how does it sound?
- LatteLazy 6y agoYou're right that I'm trivialising it, and everyone has a right to a hearing. This case will be a waste of time though. The broker has to offer best efforts, but if something goes wrong and they can't execute the order then that's tough. Even if that weren't true, this case hinges on whether those orders would have driven the price up (it didn't move much either way AFAIK). So to make the case, the class have to collectively admit to market manipulation. RobinHood stopping them was like a taxi driver refusing to drive robbers to the bank, the robbers don't get to sue when their dastardly plot is foiled! Or they can sue, but they'll lose and open themselves up further to prosecution!