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Legislatures Must Revisit the Legitimacy of the Forced Arbitration Clause

Arbitration has now become, for many businesses and individuals, a favorable form of justice to resolve disputes in our country. In fact, in just the last 10 years, thousands of companies in the Unites States have turned to arbitration and replaced the courtroom and judges with arbitrators.

The major shift occurred following the 2011 U.S. Supreme Court ruling that allowed businesses to implement forced arbitration clauses in agreements with consumers to forbid class-action lawsuits.

The problem, unfortunately, is that many companies have arbitrators in their pockets and are receiving favorable outcomes in cases where they’re liable for damages. As a result, many plaintiffs are giving up on pursuing their claims because of this corrupt system of justice.

Therefore, although arbitration can be an excellent means of resolving a dispute, it is now being manipulated and used fraudulently. Without strict judicial rules prohibiting conflicts of interest, businesses can easily use friendly arbitrators in their own disputes. There are even specific arbitrators that are actively creating relationships with companies to get their business.

The time has now come for legislators to revisit the rules and statutes governing not only the way in which arbitrations are conducted, but also the ability for businesses to implement forced arbitration clauses in their agreements with consumers.

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