Capping the Costs of Consumer and Employment Arbitration

29 Pages Posted: 30 Oct 2010 Last revised: 15 Feb 2012

See all articles by Michelle Eviston

Michelle Eviston

Northern Kentucky University - Salmon P. Chase College of Law

Richard A. Bales

Ohio Northern University - Pettit College of Law

Date Written: October 27, 2010

Abstract

Arbitration agreements requiring arbitration but imposing costs of thousands of dollars can effectively make it impossible for consumers and employees to bring their disputes in any forum. The Supreme Court has stated that high costs can make an arbitration agreement unenforceable, but has not articulated clear standards. Lower courts are split two ways on the issue: some courts have adopted a per se approach and others a case-by-case approach. This article argues that the Federal Arbitration Act should be amended to take a third approach: arbitration fees paid by consumers or employees should be limited to what consumers or employees would pay if they litigated their claim.

Keywords: arbitration, cost, FAA, fee, consumer, employee

Suggested Citation

Eviston, Michelle and Bales, Richard A., Capping the Costs of Consumer and Employment Arbitration (October 27, 2010). University of Toledo Law Review, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1698727

Michelle Eviston

Northern Kentucky University - Salmon P. Chase College of Law ( email )

Nunn Hall
Highland Heights, KY 41099
United States

Richard A. Bales (Contact Author)

Ohio Northern University - Pettit College of Law ( email )

525 South Main Street
Ada, OH 45810
United States
419-772-2205 (Phone)

HOME PAGE: http://law.onu.edu/node/3073

Register to save articles to
your library

Register

Paper statistics

Downloads
134
rank
208,345
Abstract Views
622
PlumX Metrics