Have you ever heard the term "mass arbitration"? It sounds like a pretty scary term. After all, we’ve all seen the commercials on TV with people getting taken to court and receiving the short end of the stick for not reading the fine print. But what are mass arbitrations and why do they matter?
In this article, you'll learn about arbitrations in general and then dive into the myths that surround mass arbitrations. You'll also read about AT&T v. Concepcion, which is one of the Supreme Court cases that changed the law on arbitration contracts. By the end of this article, you should have a better understanding of what mass arbitrations are and how they might affect your life.
What is an 'arbitration'?
Arbitration is a form of alternative dispute resolution that is used to settle disputes. It's something that's been around for centuries, but it has become more popular in recent years due to the popularity of contracts for cell phone services and credit cards.
There are three different types of arbitration: individual arbitration, class action, and mass arbitration. Individual arbitration is arbitration between two people or organizations, while class-action arbitration involves many people or organizations on one side of the dispute. Mass arbitrations involve individual claimants each going up against the same defendant on an individual basis. Unlike in a class arbitration, where one claimant represents all others and there is just one complex arbitration, in mass arbitrations, there could potentially be hundreds or even thousands of distinct arbitrations against a single or few defendants about the same kind of dispute.
Mass arbitration
Mass arbitration is simply the act of having an arbitrator instead of a judge or jury. It's not too different from traditional arbitration, but it does have some unique characteristics that you should be aware of.
The best way to understand mass arbitration is to look at the different parts of a contract. When you sign a contract, you automatically give up your right to take someone else to court in small claims court or any other court if they break their end of the bargain. You choose to go through arbitration instead.
The terms about what will happen if one party breaches the contract are laid out in detail in the contract. This is also true for mass arbitration cases, which are much easier because all the arbitrators are bound by the same set of rules and evidence that will be considered at trial. The arbitrators are supposed to render their decision based on these guidelines and laws instead of doing whatever they want.
Myths about mass arbitration
Mass arbitration is a type of arbitration. Arbitration is the process by which disputing parties choose an individual to hear and decide their case. There are many types of arbitration, but mass arbitration is different because it involves a large number of people in one class-action suit.
In other words, mass arbitration is when a large group of plaintiffs participates in a case against one or more defendants under the same rules that apply to other cases that fall into the same classification. For example, if you want to represent all employees who were fired for violating company policy, you can file a single claim against the company in a federal court with hundreds or thousands of plaintiffs at once.
You lose your right to appeal
One common misconception about arbitration is that it means you have to give up your right to appeal any decision made by the arbitrator. In other words, if an arbitrator rules against you in a case, then there's no turning back.
This isn't true. Unlike a court case where the judge and jury both get to make a decision, an arbitrator only makes a single, final decision for the two parties involved in the dispute. If that decision goes against you, you can still go to court and try to overturn it, though, this is more difficult to do than trying to appeal a regular court's decision.
It has the same protections as court
The term "mass arbitration" is often used to describe the process of litigation, where many people with the same complaint can be involved in one proceeding. It has the same protections as a court but the difference is that it takes place outside of court.
One myth about mass arbitration is that it's a less formal way of resolving disputes. But this isn't true - arbitration still follows strict rules and procedures, just like in a court, so you’ll have all of your rights protected.
If you know about a company charging unauthorized fees and or doing something illegal that affects many consumers, contact us at Whistleblowers International. We will evaluate your information for free and see if there is a viable mass arbitration that could be created out of your information.