Arbitration law is a dynamic judicial space. Since Supreme Court decisions have made arbitration the only forum for dispute resolution in many cases, the specific details of arbitration must be resolved. As a result, the number of cases continues to increase and new problems are recurrent. However, the trends are clear: the courts will not allow states to restrict arbitration procedures and will apply arbitration agreements in all but the rarest of circumstances, regardless of the advantage they will give to the strongest parties. In light of these cases, it is not surprising that the use of arbitration by private sector companies and employers has increased significantly. The GFPB study shows that arbitration has largely supplanted the civil justice system for most important transactions of ordinary people. Another question is whether that is a good thing. Researchers debate whether consumers are better off in arbitration than in court. Some argue that consumers are doing better and others say otherwise.41 The evidence relates to individual claims that each have their own merits. Other companies have more sophisticated internal settlement procedures in place. However, as part of the development of a broader set of internal dispute resolution procedures, diversified production company TRW adopted a labour arbitration procedure following an increase in litigation in the early 1990s. The range of dispute resolution options provided employees with other means of resolving complaints. The result is that the cases were resolved very early in the trial, with only 72 cases reaching mediation in the first three years of the program, and only three of these cases resulted in arbitration.
In addition, when arbitration cases have been obtained, tRW has set up the procedure for the company if they are lost, but not binding for the employee when the company has won. As a result, staff reserved the right to go to court after arbitration. TrW`s procedure is unusual in this regard, but it is a strong example of the feasibility of resolving labour disputes through effective internal procedures without the need for binding arbitrations that block workers` access to justice. 4.9 U.S.C Number 3. To report to the FAA, an agreement must include trade and include a written arbitration clause. 9 U.S.C number two. While closed arbitration cases may be preferable to some people, this type of forced privacy can be detrimental if a consumer wants to report a company`s misconduct. To effectively pursue rights, most employees rely on finding a lawyer willing to pursue their case. Although individuals can file claims without using a lawyer, few are willing to do so, and their success rates are much lower than those with legal representation. Nielsen et al. found that only 22.5% of workers who filed employment discrimination cases in federal courts were not represented, and just over one-third of these employees were eventually represented by a lawyer before the case was closed.53 Some argued that the simplicity and lower cost of conciliation would allow more workers to work , cases in this forum without legal representation.
But in practice, we find that only 21.1 per cent of cases are placed in mandatory arbitration by staff without legal assistance.54 In order to reduce costs and improve the efficiency of dispute resolution, companies often require their clients and employees to sign an arbitration agreement.