So, since the author was only asking for a few thousand dollars, it's probably not worth the company fighting it -- it's just a matter of them quickly finding o

So, since the author was only asking for a few thousand dollars, it's probably not worth the company fighting it -- it's just a matter of them quickly finding out how much money they have to give you to make you go away. The exact series of events would probably have occurred if he had filed in small claims court. Even though the company could likely win a motion to compel arbitration, it's not worth it to them. Arbitration may be cheaper and more informal than the courts, but that doesn't mean that defending against this type of claim economical. On the whole, courts aren't that expensive, it's the cost of lawyers and their time where the costs pile up. Small-claims courts also often have simpler and more streamlined procedures just like arbitration does. And the Judge's salary is footed by the taxpayer. The author's conclusion is that arbitration isn't all that bad because it worked out OK for him this time. But this ignores how arbitration puts the thumb on the scale in favor of the company when real money is on the table. Just to name a few: * Arbitration usually requires secrecy regardless of the outcome. This guarantees that the company will not face a repetitional hit even if they lose, and it also means that your case has no precedental value for others who were similarly wronged. * The process often places strict limitations on discovery, which can make it impossible for a prove your case. * The agreements usually prohibit class-actions, which prevents redress for widespread but low value abuses. Sometimes, the less-formal nature of arbitration can be a good thing. But if it's truly balanced and better for both parties, it should be something that can be opted into after the dispute arises. The fact that there have been so many high-profile disputes about arbitration that have been taken to the Supreme Court is pretty solid evidence that companies see the ability to compel their customers into arbitration as exceptionally important to their bottom line.