Both parties have adverse selection issues. First: customers looking for their service are likely to be noisy and costly if the business screws them. The busin

Both parties have adverse selection issues. First: customers looking for their service are likely to be noisy and costly if the business screws them. The business is selecting for fractious customers so the business needs to be careful. Secondly: the business is a specialist in the art of dealing with small claims. If a customer needs to make a small claim against the business, the business understands the system in depth, and can defend itself better than most. Although I would also expect the business understands the financial costs better, and perhaps are more refund friendly than other businesses might be.