6 ms·
Arbitration is actually very expensive for the company but generally they can rely on the fact that most people will not utilize it for a variety of reasons. I
by Junk_Collector 6y ago
Arbitration is actually very expensive for the company but generally they can rely on the fact that most people will not utilize it for a variety of reasons. If people large scale started taking companies like this to claims it could quickly become more expensive than class action lawsuits trying to arbitrate each individual claim.
If you feel strongly against arbitration clauses, activism to get people to use them is the fastest way to kill them as the cost benefit will quickly become a negative.
- jackvalentine 6y agoIt happened earlier this year to Doordash! https://www.theverge.com/2020/2/12/21135474/doordash-workers-forced-arbitration-william-alsup https://www.theverge.com/2020/2/12/21135474/doordash-workers...
- dmoy 6y agoI love me some Alsup decisions. Almost makes me wish I had gone into law and tried to become a judge. Ok not really almost, but for a brief second.
- nimish 6y agoOr just amend the Federal Arbitration Act to deny the use of arbitration as a tool to suppress legitimate use of the courts to address remedies. In the meantime create a tool to allow for mass arbitration actions.
- nickff 6y agoHow would you "amend the Federal Arbitration Act to deny the use of arbitration as a tool to suppress legitimate use of the courts to address remedies"? Do you just want to get rid of mandatory arbitration? That sounds like repealing the FAA and replacing it with its mirror image.
- nimish 6y agoForbid mandatory arbitration for b2c and b2smb Or forbid it entirely. What exactly is the problem with writing a law to stop an abusive practice?
- nickff 6y agoWell, I (and many others) think that making the courts the sole venue for resolving these disputes is not necessarily better. Getting rid of mandatory arbitration means that only large cases (with lawyers on contingency) and class-actions (where the lawyers are the only ones who benefit) will go forward. Mandatory arbitration is the best venue for medium-sized individual (settlement/judgement) cases, and courts are not viable for them. I see mandatory arbitration as a trade-off, and would simply prefer that people take that kind of clause into account when they transact with others.
- pas 6y agoWhy is it expensive? Compared to what?