There is an ongoing debate over the use of arbitration clauses in consumer contracts. Differences between arbitration and litigation include the costs charged to the parties, the speed of resolution, and the procedure of resolving a case, including how and where the arbitration is conducted and limitations on discovery. Critics of consumer arbitration say that arbitrators and arbitration administrators can be biased, arbitration clauses are not conspicuous, and for many classes of consumer goods and services, nearly all providers require arbitration. Proponents of consumer arbitration cite "consumer-friendly" terms that lower the cost of arbitration to consumers and provide incentives for consumers to bring claims in arbitration. Most arbitration clauses require parties to waive their right to proceed on a class action basis in either court or arbitration.
1. Give an example of a company that uses consumer arbitration. (You've probably signed quite a few. Contracts for cell phones, gym memberships, leases for apartments.)
2. Should companies be permitted to include binding arbitration clauses in consumer contracts?