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Arbitration

2010

Stephen Ware

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Why Do Businesses Use (Or Not Use) Arbitration Clauses?, Christopher R. Drahozal, Stephen J. Ware Dec 2009

Why Do Businesses Use (Or Not Use) Arbitration Clauses?, Christopher R. Drahozal, Stephen J. Ware

Stephen Ware

Some recent scholarship contends that arbitration is failing in its attempts to compete with litigation. When arbitration does succeed in attracting customers, such as businesses including arbitration clauses in their consumer contracts, commentators assert that it does so illegitimately, such as by enabling businesses to evade class actions and other forms of aggregate relief. Both of these positions find support in a pair of recent empirical studies authored by Theodore Eisenberg and Geoffrey Miller (and, for one of the studies, by Emily Sherwin as well). The first study examined the use of arbitration clauses in a sample of material contracts …