Mandatory binding arbitration, which corporations use to dodge accountability for their discrimination, negligence, or harassment, is a caricature of justice that offers no protection to consumers or employees. It’s also terrible for small business owners, as one couple found out.
Earlier this week, the Sixth Circuit Court of Appeals overturned an arbitration decision in a dispute between Coffee Beanery and a franchisee. The court found that the arbitrator, hired by the American Arbitration Association, “showed a manifest disregard of the law” by siding with Coffee Beanery.
Consumers may finally escape from the clutches of mandatory binding arbitration if the House Judiciary Committee smiles favorably today upon the Arbitration Fairness Act. Arbitrators rule against consumers in more than 98% of all disputes; the Subcommittee on Commercial and Administrative Law is currently meeting to consider H.R. 3010, which would restore consumers’ rights to resolve disputes fairly and openly.