Arbitration Contract of Adhesion

As businesses and individuals become increasingly litigious, the use of arbitration clauses in contracts has become more common. One type of arbitration contract that has received particular attention in recent years is the “contract of adhesion.”

A contract of adhesion is a type of contract where one party has significantly more bargaining power than the other. This often occurs in consumer contracts, where a large company provides a standard form contract to an individual consumer, who has little or no ability to negotiate the terms.

The use of arbitration clauses in contracts of adhesion has been the subject of much controversy. Critics argue that these clauses give companies a way to avoid facing lawsuits in court, which can be expensive and time-consuming. They also argue that arbitration proceedings are often conducted in secret and can be biased in favor of the company.

However, supporters of arbitration clauses in contracts of adhesion argue that they can be a more efficient way to resolve disputes than going to court. They also point out that many arbitration agreements include provisions that protect the rights of the consumer, such as requiring the arbitrator to follow applicable law and allowing the consumer to opt-out of the arbitration clause.

Whether or not arbitration clauses in contracts of adhesion are a good thing ultimately depends on one`s perspective. However, it is important for individuals to carefully review any contract before signing, and to understand the implications of the arbitration clause. If you do not agree with the arbitration clause, it may be possible to negotiate its removal or to seek out alternative methods of dispute resolution.