Authored by: Ollie Lammers
Arbitration is a way to resolve conflict outside of courts by a third-party arbitrator.
According to Public Justice, many companies include arbitrations in the fine print contracts for cellphones, employment, bank accounts, and even nursing homes.
These clauses ensure consumers can't sue companies for any wrongdoing but that legal problems must go into arbitration via a third-party arbitrator that the company pays.
According to Public Justice, here are a few ways forced arbitrations prevent legal justice.
Arbitrations are private and confidential, unlike court proceedings. Forced arbitrations prevent evidence of legal action from being known to the public or other attorneys. Hiding information prevents more plaintiffs from coming forward and corporations from being held accountable for their harmful activities.
Forced arbitrations do not allow for a plaintiff to sue a company in court. The arbitration allows the company to decide how, when, and where the plaintiff can voice their concerns. The company can also sue the plaintiff, but the plaintiff cannot sue the company.
Plaintiffs cannot pursue joining a class action lawsuit to join forces, resources, and knowledge. Avoiding class actions allows corporations to compensate plaintiffs for less because they do not have to report how much they have previously compensated other plaintiffs.
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