3 ms·
Arbiters have the same power as judges in court and could, in theory, rule the contract unconscionable. In practice, arbiters are less likely to do so because
by eadler 3y ago
Arbiters have the same power as judges in court and could, in theory, rule the contract unconscionable. In practice, arbiters are less likely to do so because
- they don't realise they are allowed to do so.
- they are biased towards the businesses who pay them.
- it potentially invalidates the entire contract.
- one of the only valid reasons to appeal an arbitration award is "going outside the terms of the contract". If the arbiter invalidates portions of the contract then it potentially opens the entire decision up for appeal.
The really weird part of arbitration is that you're allowed to delegate "arbitrability" itself to the arbiter (whom may rule that it must go back to court)
I haven't come across any specific studies but this is my understanding from my reading [0] (n.b. I am not a lawyer).
[0] https://arbitrationinformation.org/docs/references/ https://arbitrationinformation.org/docs/references/