When there is a dispute between a company and their consumers, there are two primary ways to resolve it - arbitration or a class action lawsuit.  Typically, commercial arbitration involves the corporation making direct and proportionate restitution to individuals; in turn, the consumer waives their right to participate in a class action suit.  Class action lawsuits, however, frequently result in much larger monetary settlements meant to be shared amongst a large group of consumers who bother to claim their share.  Which of these resolution methods better serve the needs of the consumer? In this episode of POLICYbrief, Alida Kass explains.

Learn more about Alida Kass at https://fedsoc.org/contributors/alida-kass

 

Related Links & Differing Views

What is Arbitration? [Legal Terms]
https://fedsoc.org/commentary/videos/what-is-arbitration-legal-terms

The Arbitration Epidemic
https://www.epi.org/publication/the-arbitration-epidemic/

Mandatory Arbitration Clauses Are Discriminatory and Unfair
https://www.citizen.org/article/mandatory-arbitration-clauses-are-discriminatory-and-unfair/

Arbitration with Uninformed Consumers
https://corpgov.law.harvard.edu/2019/01/28/arbitration-with-uninformed-consumers/

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As always, the Federalist Society takes no position on particular legal or public policy issues; all expressions of opinion are those of the speaker.