The Asymmetric Application of Arbitration Clauses

Today's NYT includes a story (p.B4) on how large companies are far less likely to "use arbitration clauses in contracts with each other than they are in contracts with consumers." The Times story pivots on a study by Ted Eisenberg (Cornell), Geoff Miller (NYU), and Emily Sherwyn (Cornell). According to the authors, the asymmetric use of arbitration clauses flows from an effort to use "arbitration as a way of avoiding class action litigation.  Because it is not worth it to a single upset consumer to sue a big company, the only thing those companies fear is your having a plaintiffs’ lawyer aggregate you and people like you into a class action.”