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The Supreme Court Case: AT & T Mobility V. Federal Arbitration

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Former Chairman of the Senate Judicial Committee, Patrick Leahy, states, “Americans are being denied their day in court or the power to bring their claims in a class action because of contractual clauses, they have no choice but to accept.” (Jost, 2016, p.1) This type of contract is an adhesion contract. Consumers can either agree or disagree with the terms, but the terms are non-negotiable. Cell phone providers, credit card companies, as well as employee contracts have similar terms in their consumer contracts. Corporations are less accountable for their wrongdoings in adhesion contracts because the consumer waives their right to sue. Although an issue may be severe to the consumer, their only choice is to resolve it through arbitration. …show more content…
Conception (2011), led to a different interpretation of the Federal Arbitration Act. The majority ruling stated that the Federal Arbitration Act preempted state law, thus the arbitration clause was enforceable. Conversely, “a recent study of more than 1,200 employment cases administered by AAA over a five-year period showed that employees fare worse in arbitration than in court,” (Jost, 2016, p. 1) yet courts have continued to enforce arbitration clauses and class action waivers. In the Supreme court case, DIRECTV, Inc. v. Imburgia (2015). The majority ruling stated that the “arbitration agreement would be enforced, even though the agreement was not enforced under state law.” (Jost, 2016, p. …show more content…
The consumer advocacy group Public Citizen conducted a study that analyzed arbitration disputes with credit card companies. “The report claimed that arbitrators have ‘a strong financial incentive’ to rule in favor of credit-card companies and other ‘repeat players’” (Jost, 2008, p. 1) The role of the arbitrator is to use evidence to settle disagreements between parties. The arbitrator acts as the judge and jury and it is not morally right to have a pre-determined mindset of who will win the dispute. In such cases, the consumer has lost even before the process has begun. Henceforth, taking the dispute to court would at the minimum allow consumers or employees to receive a fair chance at

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