The main drawback of arbitration clauses with a business is that the business is a repeat player with arbitrators, a big chance for bias against the consumer. Another drawback is the inability to appeal even a horrendously bad decision. Yet another drawback is the secrecy of private arbitration decisions; it hides complaints from the public. These are all reasons the corporations love arbitration of course.

Many courts already require parties to mediate, (negotiate formally), before you can go to trial. So I don’t see any sense in it for the consumer, to waste more time and money with any other forms of arbitration or mediation in a contract even if it were set up to be fair and open. I don’t believe the builders and warranty co’s want a fair process, I believe they want a process that’s under their control more, and more likely to go their way. They have found, like other industries, that arbitration clauses help them get exactly that.