Arbitration moves disputes out of the public court system and into a private proceeding decided by one or more arbitrators. The decision is usually binding and hard to appeal. Many clauses also bar class actions, so each customer must arbitrate alone.
For an owner-operator, arbitration can be faster and more private than litigation, but it has trade-offs: limited discovery, limited appeal rights, and arbitration-forum fees that can be steep. If the clause specifies a distant location or an expensive forum, it can effectively deter you from bringing a claim at all.
Check where arbitration must happen, who pays the arbitrator, which rules apply (AAA, JAMS), and whether it is mutual. If you keep an arbitration clause, negotiate a nearby or virtual venue and a fair fee-sharing arrangement.
"Any dispute shall be finally resolved by binding arbitration administered by JAMS in [City], and the parties waive any right to a jury trial or class proceeding."
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