Who Benefits From Mandatory Arbitration Clauses? Part 2

Who Benefits From Mandatory Arbitration Clauses? Part 2 | Bart Eagle

{4:05  minutes to read} Click here to read part 1. It is one thing when sophisticated parties, of relatively equal bargaining positions, opt to  include an arbitration clause in an agreement.  It is quite another thing when parties, even those engaged in commercial enterprises but of relatively unequal bargaining positions, agree, or are forced to agree, to an arbitration clause. An example of this would be an employment contract, where an employee must agree to a mandatory arbitration clause in order to get the job.  Similarly, customers – even sophisticated ones – who  open brokerage accounts typically must now agree to submit any and all disputes to arbitration or may not be able to open the account.  For better or worse, this has become de rigeur in the industry.

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