Are alternate dispute resolution forums for contracts a good thing or a bad thing?

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Question
To mediate or arbitrate or not. Most services contracts, e.g. cellular plans, cable, and securities trading, now require that you arbitrate your dispute first before heading to court. Is this fair? Some sides argue that arbitration roots out the parties who really don’t have a dispute or just want to get quick cash. Others say that if you don’t want arbitration then don’t use the service. Still others say that arbitration is a way to hold down low income families and to force terms on less sophisticated members of society — the bulk of most businesses.

What do you think?

Question
To mediate or arbitrate or not. Most services contracts, e.g. cellular plans, cable, and securities trading, now require that you arbitrate your dispute first before heading to court. Is this fair? Some sides argue that arbitration roots out the parties who really don’t have a dispute or just want to get quick cash. Others say that if you don’t want arbitration then don’t use the service. Still others say that arbitration is a way to hold down low income families and to force terms on less sophisticated members of society — the bulk of most businesses.

What do you think? Are alternate dispute resolution forums for contracts a good thing or a bad thing?

 

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