Mandatory Arbitration Criticism

Discussions focus on the biases and unfairness of mandatory arbitration clauses in consumer and employment contracts, where companies select arbitrators incentivized to rule in their favor, avoiding court costs like lawyer fees.

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Keywords

washingtonpost.com US TURN ISDS PayPal dcoinwiki.com ycombinator.com ICE arbitration favor court fees company small claims lawyer claims worst case cases

Sample Comments

charcircuit Jul 29, 2022 View on HN

What's wrong with arbitration?

poppafuze Mar 17, 2022 View on HN

Arbitration is why we can't have nice things.

ilikehurdles Sep 25, 2018 View on HN

It's not in the company's interest to contract an arbiter that doesn't typically rule in their favor. Customers/workers don't choose the arbiter, the company does. This is a conflict of interest and absolutely is a "causation" thing. Small claims court cases are pretty cheap.

mig_ Jan 25, 2019 View on HN

With arbitration, for the company, worst case the company pays the original amount. Without arbitration, in the court, worst case is the company pays the original amount + the clients lawyer fees.

JohnFen Feb 24, 2023 View on HN

In the US, arbitration is purely a contractual matter between the parties. So, typically, companies (almost all of them these days, it seems) will require the use of arbitration instead of the courts. And they usually get to choose the arbitrator, who derives a great deal of income from that company.There is a lot of economic incentive for arbitrators to find in favor of the company. There is very little economic incentive for them to find in favor of the person who has an issue with the comp

Miraste Dec 13, 2019 View on HN

It's usually not reasonable at all, as whoever does the arbitration depends on the large company behind the contract for continued income, and is therefore strongly incentivized to rule in their favor.

SapphireSun May 21, 2015 View on HN

I talked to a lawyer a while back and he told me that arbitration is slowly falling out of favor because often one of the parties will simply dispute that the arbitration was fair and it winds up back in court anyway.

partycoder Aug 27, 2018 View on HN

The point of arbitration is to settle a problem with the help of a trusted, neutral 3rd party. Forced arbitration does not seem as neutral.

mig_ Jan 25, 2019 View on HN

With arbitration, for the company, worst case the company pays the original amount. In the court, worst case is the company pays the original amount + the clients lawyer fees.

Animats Oct 15, 2023 View on HN

Has anyone gone to arbitration over this?