Mandatory Binding Arbitration: The Worst Choose Your Own Adventure Ever

Mandatory binding arbitration agreements are bad for consumers for so many reasons that, unless you’re the victim of one, it’s hard to keep track of the various ways you can be screwed. So we’ve come up with this helpful illustration: a choose-your-own-adventure-styled trip through the arbitration process.

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Your credit card/insurance/utility/cellphone company just screwed you, the new home you just bought is falling apart, a nursing home let your relative wander outside and freeze to death. You’ve suffered an injury, and you demand justice. You get out the contract you signed and look over it, noticing the clause that says

YOU AGREE THAT ANY DISPUTE ARISING BETWEEN THE PARTIES SHALL BE SUBMITTED TO CONFIDENTIAL ARBITRATION IN A LOCATION CHOSEN BY THE COMPANY. ARBITRATION UNDER THIS AGREEMENT SHALL BE CONDUCTED UNDER THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION. THE ARBITRATOR’S AWARD SHALL BE BINDING AND MAY BE ENTERED AS A JUDGMENT IN ANY COURT OF COMPETENT JURISDICTION. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, NO ARBITRATION UNDER THIS AGREEMENT SHALL BE JOINED TO AN ARBITRATION INVOLVING ANY OTHER PARTY SUBJECT TO THIS AGREEMENT, WHETHER THROUGH CLASS ACTION PROCEEDINGS OR OTHERWISE.

You…

(Photos: spi516, navets, and superbomba)

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