What You Need To Know About Forced Arbitration Clause
Michael Babboni
Law
Companies do whatever they can to protect themselves from lawsuits that could tarnish their reputation as well as put their assets at risk. One of the ways companies protect themselves from consumers and their personal injury lawyers is through arbitration clauses. Forced arbitration clauses, in particular, don’t benefit consumers in any way. Many consumers are unaware of forced arbitration clauses. They only find out that they agreed to one when it’s too late.What Is An Arbitration?
Arbitration is an alternative dispute resolution to litigation. Instead of going to court, with a jury, the parties in conflict attempt to resolve disputes with the help of an arbitrator. They submit their complaints, the arbitrator weighs the facts and both sides’ arguments, and then makes a decision.
Most companies include an arbitration clause in their contracts or terms of service. An arbitration clause waives the consumer’s right to sue the company, file an appeal, or participate in a class-action lawsuit. Arbitration clauses may be voluntary, meaning the consumer may opt out of it and still buy the company’s products or services; or forced, meaning the consumer doesn’t have a choice.
Most arbitration clauses nowadays are forced. In fact, many consumers agree to arbitration clauses without knowing it. Forced arbitration is employed by companies everywhere—consumer and retail, financial services, health services, housing, and even employment contracts. They bank on consumers’ tendency to agree or sign contracts without reading the fine print first. Other times, consumers unknowingly agree to it upon buying a product. This leaves the consumer without an option should they be wronged in any way by the company.
What Happens If You Signed An Arbitration Clause?
An arbitration operates differently from court litigation. First, you can only go to the company to file your complaint; it will only be dismissed by the court. Second, it is private, meaning no one else knows about your claim or complaint besides those involved. Last, it is presided by an arbitrator or a panel of arbitrators, hired by the company, and whose decisions are final in forced arbitration. The consumer doesn’t have the benefit of having their case heard by a jury, which is one of the ways our justice system ensures justice is carried.
Can You Protect Yourself From Forced Arbitration?
How can any ordinary consumer protect themselves from forced arbitration? Truth be told, your options are limited. However, if you are determined to protect legal rights, it is possible.
Read Contracts And Legal Terms And Conditions
Look for language that suggests how the company handles disputes. You may search terms like “arbitration” to see if they have forced arbitration.
See If You Can Opt Out
Not all companies employ forced arbitration. Read the fine print and see if you can opt out of it and how.
Don’t Patronize These Companies
The only way to protect yourself from forced arbitration is to not agree to it in the first place. If they don’t allow you to opt out, simply turn around and look for a different company that doesn’t have forced arbitration.
What If You Already Signed An Arbitration Clause?
Just because you signed an arbitration clause doesn’t mean that you have lost the battle. There are still numerous ways to shift the situation in your favor. Consult with a personal injury lawyer before you make any legal action. An experienced lawyer will evaluate your case and be able to advise you on the legal leverages you can use. If all goes well, your case may even be settled without arbitration.