Arbitration, is it a good or bad thing.
-June 16, 2012

Most, if not way too many contracts today, include an arbitration clause. Some are forced upon you, while others are agreed to by the parties.

Do you really know what you are agreeing to?? On the surface it always seems that bypassing court is a good thing. Think again. Here are some of the pitfalls.

1. the arbitration is not always in your home town or home state for that matter;

2. you must pay for the arbitrator, or if the agreement requires more than one, for all arbitrators.

3. what the arbitrators decide, is pretty much final; no appeals, except in rare circumstances;

4. the courts will enforce arbitration agreements; so think before you agree to them;

5. if they are forced upon you, at least be aware of their existence and the problems they can present when the arguments/disputes start.

So, I know you want the deal, the car, the house, the job, but read the contracts carefully and know and understand what you sign.

 

 

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