Reference no: EM133527061

Assignment:

In this module you have learned about the basics of the litigation system. In recent years the alternative approaches of mediation and arbitration have become widespread and actual jury trials are increasingly rare.

As you know, legislatures have passed laws favoring the use of arbitration clauses. The Federal Arbitration Act is the basis for this movement. Starting in the mid-80s, the Supreme Court heard a series of cases that consistently upheld the use of arbitration clauses in numerous different contexts.

States have followed this trend as well. The Kentucky Arbitration Act can be found at KRS 417 generally favors the use of arbitration. However, Kentucky was one of the first states to carve out a specific exception, prohibiting the use of arbitration clauses in employment contracts.

For many businesses, there are significant advantages in including arbitration clauses in managing costs and risks. Arbitration is generally less unpredictable than litigation. Arbitration provisions also allow companies to choose the forum or location where the arbitration will take place, minimizing the costs of dealing with disputes in far-off forums. Some businesses, such as nursing homes, have opted for arbitration clauses because of concerns about the lack of sympathies juries may have for their industry. Over the past decade, arbitration clauses have come into wide use in consumer contracts and use agreements for a vast array of products and services. Here are some readings and resources that may be helpful to you on this topic:

• Arbitration Everywhere, Stacking the Deck of Justice:
• In Arbitration, a 'Privatization of the Justice System:
• The New York Times: Attack on Arbitration:

The American Arbitration Association is a nonprofit corporation dedicated to alternatives to the Court system. The AAA has been extremely successful in its mission. AAA arbitrators and rules of arbitration are incorporated in numerous commercial contract. In considering the issue you may also want to peruse the AAA website to see about the services they provide.

In crafting your posts, you may want to address some or all of the following questions:

• What factors have led to the rise of binding arbitration clauses?
• Do you think this is a net positive or negative development for society?
• Do you agree with the general approach of Courts to honor arbitration clauses?
• Should Courts treat arbitration clauses in business to business contracts differentl?
• What options, if any, do consumers have when presented with an arbitration clause from a larger business?
• What, if any topics do you think legislatures or court should exclude from the use of binding arbitration clauses as a policy choice?