On the recordApril 14, 2016
During the congressional debates on arbitration more than 90 years ago, witnesses testified about the benefit of resolving disputes without judicial intervention. They noted, for example, that when arbitration is properly used, it can help parties avoid the uncertainty, delay, and costs of protracted litigation. Their testimony ultimately led Congress to pass the Federal Arbitration Act of 1925, which empowered courts to enforce arbitration agreements. As the use of pre-dispute forced arbitration agreements--especially with respect to consumer transactions and employment agreements--has proliferated in recent years, however, it is clear that arbitration is not always beneficial to all parties and it may, in fact, eviscerate the protection of critical federal consumer and civil rights statutes. It is also apparent that the secrecy of arbitration awards can be used to hide awareness of wrongdoing by businesses. And, there are serious concerns about whether some arbitrators are indeed neutral.…
