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Generally, what are the disadvantages of including a dispute…

Generally, what are the disadvantages...
Generally, what are the disadvantages of including a dispute resolution provision in a terms and conditions agreement (for services) governed by California law?
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3/27/2018
RayAnswers
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Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

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Customer reply replied 29 days ago
Thanks.

Under California law arbitration is a process that involves both parties meeting with a qualified arbitrator who functions similarly to a judge in a courtroom by deciding which party’s argument and the case has more merit and should prevail.

This process can be either binding or non-binding, depending on the language of the agreement.

Binding arbitration means that whatever decision the arbitrator makes is considered final.

Non-binding arbitration allows either party to take the case to an actual courtroom if the outcome is unsatisfactory to the parties involved.

Businesses generally include this type of clause in contracts when they don’t want to open themselves up to time-consuming and drawn out lawsuits in the event of a dispute with a customer or client.

If you wish to keep more control over how disputes are handled, consider including this clause in your Terms and Conditions. Weigh the advantages and disadvantages for both you and your customers before including this clause.

Advantages

In California the main advantage is that it is much faster than litigation.

Scheduling an immediate session with an arbitrator is much easier than getting an early hearing date set. Rescheduling is also easier done with an arbitrator than with courts.

If your case involves a technical concept or a specialized industry, such as patents or engineering issues, arbitration allows you to choose an arbitrator with specialized knowledge of that concept or industry.

This can be advantageous for parties rather than dealing with a judge who potentially has no knowledge or experience with that industry.

Disadvantages

Arbitration does have some key disadvantages that you should know about before utilizing it.

Unlike a typical court trial, appeals are not allowed in arbitration cases unless it is proven that the arbitrator was biased or that his or her opinion violated public policy.

This finality can be unattractive to some who want to keep options open and have the ability to appeal a decision.

Arbitration tends to be far more financially costly than litigation.

An arbitrator is paid privately by the parties involved (you as a business and the user), and this cost can easily be in the thousands of dollars.

You are paying for convenience, flexibility in scheduling, and getting to choose traits of your arbitrator rather than getting a random judge.

If you’re a disgruntled customer or client to a business that has an arbitration clause in their Terms and Conditions and you agree to this agreement, you can no longer sue or join a class action lawsuit against the business.

As a user who agreed to this agreement, you are forced to take all legal recourse issues through an arbitration hearing. This loss of freedom of choice can be frustrating for individuals who wish to sue rather than arbitrate.

Understand that forced or mandatory arbitration takes away the right of wronged consumers to band together and form a convenient class action lawsuit.

By forcing each individual to go through an arbitration hearing, pressure is taken off of the business and is placed onto the consumer.

I appreciate the chance to help you today.Thanks

If you can positive rate5 stars it is much appreciated,

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