Law Commons^™

Paying The Price Of Process: Judicial Regulation Of Consumer Arbitration Agreements, Stephen J. Ware

Journal of Dispute Resolution

Arbitration clauses now appear in many of the form contracts through which consumers obtain goods, services and credit.' Why do so many businesses that deal with consumers choose arbitration? Relative to litigation, arbitration provides opportunities for a business to save on its dispute-resolution costs. If arbitration does, in fact, lower these costs then arbitration lowers the prices (and interest rates) consumers pay because competition forces businesses to pass their cost-savings on to consumers.