This is the adventure of when Sandy the blogger agrees with Senator Al Franken of Minnesota. It’s enough to cause the blogger to dunk himself in battery acid!
The issue is mandatory arbitration. Some background: The Federal Arbitration Act is a 1922 law that requires arbitration to resolve legal disputes. Arbitration is a private court system that bypasses the jury and also appeals as well. While it is necessary and even desirable for businesses and corporations to have a method to avoid court and use arbitration, today many consumer contracts have an arbitration requirement. So do many employment/severence contracts.
There is no court recourse where arbitration is required; the court must determine whether the arbitration is conducted fairly. It is a very low standard. This article by Paul Samakow is worth reading. A few highlights:
The existing law of our land, the Federal Arbitration Act, has been interpreted by the pro-big business Supreme Court and thus gives businesses a significant advantage in resolving disputes with us. We are forced into binding arbitration, and the Court says this is legal. Legislation is needed to turn back the clock and restore fairness.
Most contracts we sign with big business today include mandatory arbitration clauses. These include contracts for cell phones, credit cards, mom’s or dad’s nursing home, and even on-line user agreements. Thus, when presented with these contracts, where the arbitration clauses are in fine print and often in difficult-to-understand legalese, we routinely sign, and thus, we “voluntarily” give up the right to file a lawsuit if there are problems.
The same thing happens in routine employment civil rights matters. Most big business or large corporation employee handbooks state that the employee cannot sue their employers, and that they must submit to a binding arbitration process for almost any issue.