Nonconsensual Nonbinding = Nonsensical? Reconsidering Court-Connected Arbitration Programs

Abstract

Policymakers have adopted programs mandating parties to submit their disputes to court connected arbitration hoping to garner efficiency benefits commonly associated with contractual Federal Arbitration Act (FAA) arbitration. Mandatory nonbinding arbitration, however, is ill-equipped for this task because it lacks the consensual core and finality of FAA arbitration. Instead, it often adds an inefficient layer to the litigation process and may harm those least able to protect themselves from coerced settlements or burdens of protracted litigation.

Keywords: arbitration, contracts, consumer rights, consumer law, dispute resolution

JEL Classification: K12, K41, K30, K10