Arbitration vs. Court: Why Companies Force You to Waive Jury Trials
The 'Dispute Resolution' clause determines your fate. Is arbitration essentially a private court?
Open any Terms of Service (Uber, Netflix, your Bank). Scroll to the bottom. You will see an "Arbitration Agreement" and a "Class Action Waiver." Why are they scared of real courts?
What is Arbitration?
Arbitration is a private dispute resolution process. Instead of a Judge and Jury, you present your case to an "Arbitrator" (usually a retired lawyer or judge). Their decision is binding.
Why Companies Love It
- No Juries: Juries tend to sympathize with the "little guy" against the big corporation. Arbitrators are professionals who follow the strict letter of the law.
- Confidentiality: Court cases are public record. If Uber loses a massive lawsuit, it's on the front page of the NYT. Arbitration results are secret.
- Speed & Cost: It is generally faster than the court system.
The Class Action Waiver
This is the real weapon. If a bank overcharges 1 million people by $5 each, no single person will sue for $5. But a Class Action could sue for $5 Million.
By forcing you into individual arbitration, they make it economically impossible for you to fight small injustices. It's a calculated prevention of liability.
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