What is mandatory binding arbitration?
Mandatory binding arbitration is a term coming up in discussion more frequently. Essentially, many contracts with companies or service providing individuals (doctors, dentists, auto repair people) may ask you to sign a contract which states if you have a legal dispute with the company or individual, you agree to bypass the public courts system and instead have your dispute heard by a private arbitrator. You also agree to abide by the decision of the arbitrator and cannot appeal your case in a public court. Sometimes agreements to mandatory binding arbitration are very open. If you’ve joined a new doctor’s office lately, you may have signed one. Other times agreements to mandatory binding arbitration are buried in the small print of a contract, and people aren’t aware they’ve signed this agreement. When you’re unsure how disputes would be solved, it’s a good idea to ask if you are agreeing to arbitration before signing your name. When a company asks you to sign mandatory binding arbitra
Arbitration is a process that seeks to resolve disputes without formal legal action. A formal law suit, which can hold a consumer accountable, is replaced with a costly private justice system where high costs and abuse of the law have been clearly documented. Arbitration is inherently biased and favors business, not consumers that is why it is used. Arbitrators are often on contract with businesses against consumers who have claims brought against them. By prearrangement, most companies can choose the arbitrator and venue of a dispute. Additionally, arbitrators are motivated to rule in a way that will attract future company business to them. The following are issues with the arbitration process: * A single arbitrator or a panel, not a judge, decides disputes. * Arbitrators are not required to have any legal training and need not follow the law. * Arbitration disputes are secret and there is no right to public access. * Their decisions may be legally incorrect. * There is virtually no r
