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From my desk, mandatory arbitration feels like a trap for smaller companies
In my experience, these arbitration clauses in business deals are stacked against the little guy. We got into a fight with a software provider over a broken system, and the arbitration dragged for almost a year. The fees piled up fast, way more than going to court would have cost. Your mileage may vary, but the arbitrator was picked by the other side's usual law firm, which felt wrong. It ended with a weak deal that left us paying our own costs. I've handled a few cases like this, and it always seems one-sided. Now, I tell every client to try and remove these clauses before signing. Take this with a grain of salt, but I think the system needs a big change to be fair.
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henderson.brooke2mo ago
Did a friend's business get eaten alive by arbitration? They spent more on fees than the dispute was even worth.
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troyp372mo ago
Man, that's rough for your friend Brooke... been there with a supplier dispute last year. What saved us was pushing for small claims court instead, way cheaper and faster. Sometimes you gotta just walk away from arbitration clauses entirely.
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the_skyler2mo ago
Remember reading about a case where arbitration fees actually doubled what the company owed in the first place. Makes me think Brooke's friend isn't alone in getting burned by that system. The whole thing feels set up to drain your wallet before you even get a real hearing. Small claims court sounds messy but at least the costs are clear from the start. You really have to check every contract for those arbitration traps now.
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