Reference no: EM131680957

Arbitration as an alternative to litigation but this option has become very expensive over the years. Businesses prefer arbitration for many reasons but the largest has to be because it is private. Litigation is incredibly public and a business can have its name dragged through the mud, especially in the context of consumer protection. So the Concepcion decision was a big deal for business. The decision upheld the boilerplate contract clauses that make it mandatory to take grievances to a binding arbitration and avoid litigation completely. It also upheld the clause to avoid the group arbitration. Class actions make attorneys incredibly wealthy and I was surprised that this was not struck. One other quick point, arbitration is usually conducted by a panel of arbitrators who are the judges. These judges are often retired executives from the given industry, retired government managers, or academics that publish or study in the area. This creates an incredible bias for industry. So the fact that the Supreme Court upheld these contract provisions is a major win for business.

What are your thoughts? Say you had overage charges that you felt were unjust and you were forced to bring an individual claim, and forbidden from joining other similar claims with other people, would you bring a claim to arbitration?