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You need to reform lawsuits at the same time. The US legal system allows lawyers to take cases on contingency, getting paid only if they win. In most other countries this isn’t allowed. In addition, in most other countries it’s much easier for the winner of the lawsuit to recover the legal costs of the lawsuit from the loser.
The result of this is that the US has a lot more nuisance and extremely speculative lawsuits. Under those conditions, a binding arbitration setup is more reasonable. It means that neither side is spending tons of money on lawyers. If you reform the legal system so that only people who stand a decent chance of winning are willing to sue, then definitely get rid of binding arbitration.
It’s perfectly reasonable for, say, a tattoo artist not to be liable for the medical bills, if the ink causes a hitherto unknown allergy to kick in.
It’s not reasonable to argue that a streaming service agreement covers liability for being cut in half by a train.
There has to be a reasonable understanding of the underlying risks that are covered. Some things are just inherently risky, and if the buyer knows and understands that, she can agree on taking that risk. Otherwise, no doctor would ever touch any patient ever again.
Arbitration clauses must be made illegal
They are in the rest of the first world countries.
You need to reform lawsuits at the same time. The US legal system allows lawyers to take cases on contingency, getting paid only if they win. In most other countries this isn’t allowed. In addition, in most other countries it’s much easier for the winner of the lawsuit to recover the legal costs of the lawsuit from the loser.
The result of this is that the US has a lot more nuisance and extremely speculative lawsuits. Under those conditions, a binding arbitration setup is more reasonable. It means that neither side is spending tons of money on lawyers. If you reform the legal system so that only people who stand a decent chance of winning are willing to sue, then definitely get rid of binding arbitration.
Or at least reasonable.
It’s perfectly reasonable for, say, a tattoo artist not to be liable for the medical bills, if the ink causes a hitherto unknown allergy to kick in.
It’s not reasonable to argue that a streaming service agreement covers liability for being cut in half by a train.
There has to be a reasonable understanding of the underlying risks that are covered. Some things are just inherently risky, and if the buyer knows and understands that, she can agree on taking that risk. Otherwise, no doctor would ever touch any patient ever again.
Arbitration is never the right answer. Fix the judicial system, don’t privatize it.