I read a contract of purchase from a company with which I really wanted to do business (though there are other equally good competitors). Its contract required me to sign a contract with an arbitration clause and a limit on contractual remedies. My thought was, “Don’t sign them!”
Arbitration is worse than going to court. You already pay taxes for our courts. You pay, again, to arbitrate. It's not faster, any better, nor less expensive. In fact, your case is at risk of being tried before an arbiter that works exclusively for the other side.
Moreover, limiting remedies means you'll recover less than your damages and you will not be made whole. This is especially grievous when it's a contract in which all you had to do was pay for the service or product (and you did so), but the only party that can default is them, or it.
Unfortunately, I can't do business with the company that I wanted because of it. However, I'll do business with the competitor that seemed on par.
Note: I also don't sign doctor’s arbitration clauses, nor anything allowing excessive interest rates for collections. I scratch and line them out, and then sign. I've never had a problem doing that.
Loren M. Lambert © May 6, 2017.
Arbitration is worse than going to court. You already pay taxes for our courts. You pay, again, to arbitrate. It's not faster, any better, nor less expensive. In fact, your case is at risk of being tried before an arbiter that works exclusively for the other side.
Moreover, limiting remedies means you'll recover less than your damages and you will not be made whole. This is especially grievous when it's a contract in which all you had to do was pay for the service or product (and you did so), but the only party that can default is them, or it.
Unfortunately, I can't do business with the company that I wanted because of it. However, I'll do business with the competitor that seemed on par.
Note: I also don't sign doctor’s arbitration clauses, nor anything allowing excessive interest rates for collections. I scratch and line them out, and then sign. I've never had a problem doing that.
Loren M. Lambert © May 6, 2017.
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