Mandatory arbitration agreements deprive citizens of their right to seek redress in the courts of this country. Many large businesses place these clauses in their consumer agreements as a requirement. It has been consistently shown that the arbitrations which flow from these clauses are skewed in favor of the large corporations. Simply put, arbitrators know that they will not continue to receive business from these companies if they rule against them.
Recently, public pressure has forced many credit card companies to remove these unfair clauses from their contracts. However, they remain in many business agreements which consumer sign every day.
The American Association for Justice won a small victory last month in the long war over mandatory arbitration. Congress banned defense contractors from including in their employment contracts any provisions that require arbitration. This legislation arose from the case of Jamie Leigh Jones, a former employee of defense contractor Kellogg Brown & Root who reported being raped by her coworkers in Iraq.