One of the hottest topics in alternative dispute resolution these days involves mandatory arbitration requirements in consumer and employment contracts. The fairness of forcing consumers and employees to forego their day in court for arbitration and how such arbitrations are conducted is a question being addressed by legislators, jurists, consumer advocates, corporate America, and almost every ADR provider organization, often involving fierce debate.
The issue is complex. Those supporting mandatory arbitration clauses argue that arbitration provides a better process for small dollar amount claims than does litigation, that the “right to sue” is illusory in such matters and that arbitration actually provides a better chance to have a claim heard by a neutral party in an expedited, cost efficient manner. Detractors claim second-class justice, that the deck is stacked in favor of the corporation and that numerous unfair procedural obstacles prohibit any sense of fairness and level playing field.
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