BusinessWeek has published a pretty substantial cover story on arbitration, and why it disadvantages consumers. Consumerist readers will be familiar with many of the story’s criticisms: one study finds 99.8% of arbitration cases are decided in the corporation’s favor, some arbitration firms market themselves to companies as a sympathetic and partial judge, the arbitration process is intentionally structured to handicap consumers, and more.
arbitration
81% Of Americans Hate Mandatory Binding Arbitration
By 5.27.08
According to science, even the President is more popular than mandatory binding arbitration. A recent poll shows that Americans hate everything about the extrajudicial resolution system, from its inescapable omnipresence, to its unappealable decisions that rob consumers of their day in court. The poll provides a refreshing contrast to a different study commissioned by the U.S. Chamber of Commerce, which found that Americans love mandatory binding arbitration more than pie.
Class Action Against Credit Card Companies Conspiring To Make Us All Accept Mandatory Arbitration Revived
By 4.28.08
Ross vs Bank of America is a class action suit…
Arbitration Mill Sued By San Francisco
By 4.7.08
A San Francisco attorney has sued the National Arbitration Forum for being biased towards credit companies and ignoring consumer rights. [More]
Cancer Patient Wins $9 Million From HealthNet In Arbitration Settlement
By 2.22.08
The award issued by an arbitration judge was the first of its kind and prompted Health Net to announce it was scrapping its cancellation practices that are under fire from state regulators, patients and the Los Angeles city attorney.
Supreme Court Sends "Judge Alex" Back To Arbitration
By 2.21.08
The 8-1 decision came in a lawsuit by Alex E. Ferrer, a former Florida Circuit Court judge who decides minor civil disputes as a form of TV entertainment.
Dealership Tells Customer Abitration Is Awesome For Corporations
By 2.12.08
Sean writes: “The wife and I were purchasing a car this weekend. After the typical pulling of teeth to get a price quote over email, we headed into the dealership on Saturday to finalize the deal. We were finally ushered into the finance guy’s office, pitched the warranty, gap insurance, etc., and got to the contract itself. I looked over the agreement and saw the ‘binding arbitration’ clause. Knowing it wasn’t a battle I could win, nor an issue I could avoid by shopping elsewhere, I let it go with a simple, “I don’t like the binding arbitration clause.” To my surprise, he responded, “Arbitration is the best thing invented for corporations!” [More]
Opt Out Of H&R Block's Arbitration Agreement
By 2.8.08
Reader Justin writes in to tell us how to opt-out of H&R Block’s arbitration clause in their 2007 Client Service Agreement.
Sex Assault Suit Vs. Halliburton Goes To Arbitration
By 2.7.08
A woman who says she was sexually assaulted by co-workers while working for a contracting company in Iraq, KBR, affiliated with Halliburton, lost her chance to get her case heard in a real court of law. A judge ruled yesterday that the mandatory binding arbitration clause in her contract holds firm and so its off to kangaroo court she goes. The unfortunate court decisions is a rape of justice, this is an instance where the arbitration clause should have been ruled unconscionable. [More]
The Burger Of Mandatory Binding Arbitration
By 2.1.08
If you step into this Whataburger in Kilgore, Texas, you automatically agree to the burger joint’s mandatory arbitration clause. At least that’s what the sign on the door says. According to Mother Jones:
Sorey says when he went in, he told a befuddled cashier that he didn’t think that the arbitration notice was enforceable, that anyway he wasn’t agreeing to it, and, “I need a taquito and a coffee.” He says he sat down, watched some traffic, and ate his taquito. “I didn’t choke, I didn’t burn myself, and I didn’t sue ’em,” he reports.
That’s one burger that’s hard to swallow. Might choke on your after you read this sign. That’s one raw burger. Etc.
Opt Out Of Comcast's Arbitration Agreement
By 1.30.08
Included in the Comcast January bills was a new Comcast Agreement for Residential Services pamphlet, and a new opportunity for customers to opt out of mandatory binding arbitration as a way to settle disputes with their cable provider. Just go to comcast.com/arbitrationoptout, enter the required information, and hit go. Boom, you’ve just held onto your constitutional rights. Here’s a related post on the 9 ways arbitration screws consumers over.
$1 Billion ETF Class Action Against Verizon Approved
By 1.29.08
Somehow, an arbitrator has approved a massive $1 billion class action lawsuit against Verizon over their early termination fees. In letting the lawsuit proceed, the arbitrator wrote, “…millions of class members are entitled to adjudication of the central common questions of fact or law in this arbitration related to whether the $175 early termination fee imposed by respondents Cellco Partnership d/b/a Verizon Wireless … is based upon an unenforceable liquidated damage clause.” With cellphone companies switching to prorated ETFs and the rise in ETF-related lawsuits around the country, one wonders if we won’t see the death of ETFs in the next few years. By that time, cellphone companies will have figured out a new technique to keep people from leaving their contracts.
Said No To The Doctor's Arbitration Agreement
By 1.25.08
Today I successfully objected to an arbitration clause and was still able to get the service. It was for acupuncture. I was filling out all the blah blah forms and then I came across the arbitration agreement. I wasn’t even planning on this, I just saw it and got really uncomfortable.
Judge Dismisses Class Action Lawsuit Against Overstock.com Due To Mandatory Binding Arbitration Clause
By 1.11.08
Did you know that every time you purchase something from Overstock.com you agree to a mandatory binding arbitration clause and have no legal recourse against the company? Even if they illegally disclose too much of your information on your receipt?
You Can't Buy A Car Without Agreeing To Arbitration
By 12.18.07
Having failed at VW dealership, a Mother Jones reporter continued her journey to buy a car without signing an arbitration. She tried half a dozen dealerships over a month, and none of them would let her buy a car without signing an agreement waiving her right to sue. Finally, she found the car she wanted from a guy who was selling it on his own, but then the loan document from her bank contained a huge arbitration clause.
Judge Judy's TV Court Isn't Real
By 12.17.07
We were operating under the misunderstanding that Judge Judy was a broadcast of an actual small claims court somewhere, but then our legal beagle intern Alex informed us that it’s really just arbitration dressed up to look like small claims court.
Mandatory Binding Arbitration Means Alleged Halliburton Rapists Could Go Free
By 12.13.07
A woman who filed a civil lawsuit against Halliburton for being the victim of a gang rape by her coworkers in Iraq will have her day in court, kangaroo court, thanks to the mandatory binding arbitration clause in her employment contract. Jamie Leigh Jones says she was drugged and raped by her fellow workers, then imprisoned inside a shipping container and left without food or water until the US embassy came to rescue after the State Department got calls from her father. She says she was told she would be fired if she sought medical treatment. [More]
Cars And Binding Mandatory Arbitration
By 11.27.07
Is it possible these days to buy a car, even a used car, from a dealer without a binding mandatory arbitration clause? Nope, we guess not.
