Executive Order Strikes Blow to Mandatory Arbitration

Most people don't realize that they have already waived their Constitutional right to sue many of the companies they interact with. In virtually every contract, service agreement, terms and conditions, cell phone plan, etc. that any person enters into, there is a "Mandatory Arbitration" clause.

What this does is waives the person's 7th Amendment right to trial by jury http://en.wikipedia.org/wiki/Seventh_Amendment_to_the_United_States_Constitution) , and substitutes that right with arbitration. Almost always, this arbitration is mandatory and binding (no right to appeal). In an arbitration, rather than filing a lawsuit and ultimately having a judge and jury hear the case, one or more 'arbitrators' (these people are sometimes lawyers, but do not have to be, and sometimes these arbitrators have no legal training whatsoever) hear the case and decide the case. Again, typically there is no right to appeal this decision, which is particularly alarming, given the number of trial court and even appellate court decision that are overturned every day (which means the reviewing, appellate court found sufficient error to overturn the decision). Further, the costs of arbitration are many times split between the parties, which creates a further barrier for individuals to pursue a dispute (these costs can exceed $30,000 in some cases.) 
This new executive order prohibits companies that pursue government contracts from requiring their workers to agree upfront to mandatory arbitration.

Hopefully this will be the first step in restoring the right to trial by jury for millions of Americans.

​For further coverage of this matter, see http://online.wsj.com/articles/federal-contractors-will-face-rules-on-labor-practices-1406764453?mod=_newsreel_5