Ethics of Legal Astuteness: Barring Class Actions Through Arbitration Clauses

28 Pages Posted: 6 Aug 2020

See all articles by Colleen Baker

Colleen Baker

University of Oklahoma, Michael F. Price College of Business

Daniel T. Ostas

Michael F. Price College of Business, University of Oklahoma

Date Written: July 9, 2020

Abstract

Recent Supreme Court cases empower firms to effectively bar class action lawsuits through mandatory arbitration clauses included in consumer adhesion and employment contracts. This article reviews these legal changes and argues for economic self-restraint among both corporate executives and corporate lawyers who advise them. Arbitration has many virtues as it promises to reduce transaction costs and to streamline economic exchange. Yet, the ethics of implementing a legal strategy often requires self-restraint when one is in a position of power, and always requires respect for due process when issues of human health, safety, and dignity are in play.

Keywords: arbitration, legal astuteness, class action, ethics

JEL Classification: K10, K40

Suggested Citation

Baker, Colleen M. and Ostas, Daniel, Ethics of Legal Astuteness: Barring Class Actions Through Arbitration Clauses (July 9, 2020). Southern California Interdisciplinary Law Journal, Vol. 29, No. 3, 2020, Available at SSRN: https://ssrn.com/abstract=3647600

Colleen M. Baker (Contact Author)

University of Oklahoma, Michael F. Price College of Business ( email )

307 West Brooks
Norman, OK 73019-4004
United States

Daniel Ostas

Michael F. Price College of Business, University of Oklahoma ( email )

307 West Brooks
Norman, OK 73019-4004
United States
405-325-5619 (Phone)

HOME PAGE: http://www.ou.edu/content/price/management_ib/faculty/daniel_ostas.html

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