Articles Posted in FAIR Act

Arbitration Agreement

Forced and Often Rigged, Arbitration Only Helps Companies

Some companies practice forced arbitration by removing its consumers and workers right to file a claim in a public court through formal, signed agreements. As defined by the American Bar Association, arbitration is “a private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments.” Similar to what happens in a trial, those involved will present their case along with evidence to the arbitrator. But parties may not have to follow state or federal rules of evidence. Likewise, the arbitrator is not always required to apply the governing law.

Millions are subject to the binding process, according to a new report by the American Association for Justice (AAJ). Truth About Forced Arbitration, calls the process an immunity and effort to allow companies to continue breaking the law. The AAJ collected five years of data on consumer and employment forced arbitrations reported by the nation’s two largest arbitration providers, the American Arbitration Association (AAA) and Jams and concluded these findings.

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