As the public policy debate over the propriety of mandatory arbitration rages on, many companies continue to insert pre-dispute arbitration agreements (PDAAs) into their adhesive consumer and employment contracts, mandating arbitration of any dispute arising out of or relating to the contract. These clauses often strip the weaker party of its right to pursue claims as class or collective actions (class action waivers). Companies justify their use of these PDAAs on the ground that arbitration is a cheaper and more efficient yet fair method of dispute resolution, while consumers and employees argue that they are forced into an unfair dispute resolution forum tilted in favor of repeat player corporations with superior bargaining power.
Jill I. Gross, THE UBERIZATION OF ARBITRATION CLAUSES, 9 Arb. L. Rev. 43 (2017).