A Behavioral Analysis of Private Judging
Article from: TDM 5 (2005), in Context & Culture
A commonly cited reason that businesses include arbitration clauses in their contracts with consumers is to avoid jury trials. From the perspective of businesses, replacing a jury with an arbitrator "provides much-needed protection from the unpredictability of jury awards, which, in recent years, have been known to reach astronomical heights -- awards that appear inappropriate even to the most objective observer." From the perspective of consumer advocates, businesses choose arbitration to "decrease their likely payout" by avoiding juries, which they believe "will often be ...