Mandatory Arbitration Provision

Mandatory Arbitration Provision
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A mandatory arbitrary provision is a requirement that provides that disputes among the consequent parties (in a contract) are to settle their disputes through an arbitration arrangement rather than the normal court jury. This provision has been under constant scrutiny with critics arguing that it infringes the basic right of any American to seek redress in a court hearing.
As defined in the law of contract, in a case whereby either of the parties to a contract feels that the other party has failed to fulfill the terms stipulated in the contract, then, this individual has the right to seek justice in court (Barnes, 2015). In this scenario, the court may award monetary compensation to the plaintiff if it deems that the defendant was acting in a breach of contract. In some circumstances, the parties may opt for arbitration; whereby, the parties agree to present their case to an arbiter. For a mandatory arbitration provision binds the parties to accept the arbiter’s judgment without question.
In most industries, such as the banking and cell phone industry, the companies have set a mandatory arbitration provision for their clients who seek a contract with them. Hence, this prevents the customers from seeking redress in courts through class action lawsuits. Also, companies have adopted this policy by subjecting their employees to sign contracts with the mandatory arbitration provision (Barnes, 2015). In their argument, companies postulate that the mandatory arbitration provision helps to reduce the time spent to seek justice as well as minimize costs for both parties.

Also, the companies have argued that the mandatory arbitration requirement works for the general public since it reduces the aggregate production costs hence reduced commodity prices (Barnes, 2015).
However, this arrangement is not ethical, and it has only worked to infringe the rights of American employees. The fact that the employees have no right to appeal after the arbiter’s judgment implies that the right to justice of the parties is limited. Therefore, the mandatory arbitration provision should be abolished since it is only a plot by the companies to avoid lawsuits rather than benefit both parties.
References
Barnes, L. G. (2015). How Mandatory Arbitration Agreements and Class Action Waivers Undermine Consumer Rights and Why We Need Congress to Act. Harv. L. & Poly Rev., 9, 329.