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PACHAO, DIANE BLAKE B.

ADR QUIZ 2-B

1. According to the 3-part article, cite the many different ways in which
arbitration denies the right of the people to their day in court.

The article revealed wrongdoings of religious sects and corporations to dodge


responsibilities arising from their mistakes. One of which is adding arbitration clauses to
contracts for their programs.

In one of the cases mentioned, the religious arbitration clause prevented a


mother from knowing the events prior to her sons death during his treatment in a
Christian-run program known as Teen Challenge. The contract signed by her son during
his admission to the program prevented her from taking the Christian group to court. In
addition, the arbitration process would be bound by the Bible and not by state or federal
law. The clause not only prevented her from vindicating her sons death but it also
denied her constitutional right to due process.

These arbitration clauses are also used to sort out criminal cases. Instead of
going to court to assert their right to justice, victims are forced to go through arbitration
to settle criminal disputes. More often than not, the petitioners lose or they just settle for
whatever amount is given to them.

The article also stated that people are being forced out of courts and into
arbitration because of the arbitration clauses that people unknowingly agree to. Judges
also rule in favor of the arbitration. Courts uphold the terms of arbitration saying that it is
the law between the parties. The problem is, these people unknowingly agree to
arbitration. Their consent are obtained through fraud and deceit but they are bound to it.

People are also denied a day in court because they lack funds to go after these
corporations with unlimited resources. So they drop their claims instead of asserting
their constitutional right to go to court and just agree to arbitration because it is allegedly
cheaper than litigation.

Another injustice pointed out by the article is the biased decisions of arbitrators to
keep business going. Arbitrators cultivate ties with companies to ensure their jobs.
Some of the arbitrators who were interviewed admitted this practice. These decisions
are difficult to overturn or impossible to appeal even if they have caused substantial
injustice.

Arbitration also gives these corporations and institutions an escape from their
legal liabilities.

In the cases mentioned in this article, it shows that people are willing and able to
go through the process of litigation in order to achieve justice but they are stopped by

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PACHAO, DIANE BLAKE B. ADR QUIZ 2-B

these arbitration clauses and the promise of a speedier and less expensive way to get
what they deserve.

2. Cite reasons why arbitration is preferred over class action suits in cases
involving consumer rights and similar advocacies.

There are many benefits of class suits when suing a big corporation. This
includes decreased litigation costs for the individual and higher chances of winning.
However, there are also some benefits that can be gained from arbitration.

Arbitration enabled individuals to resolve their grievances easily. This is because


the circumstances that come along with their complaints are personal to them. These
can be addressed in detail if they go to arbitration instead of class suits.

Arbitration is preferred over class suits because class actions yielded little relief
for plaintiffs according to a law partner interviewed. He also said that arbitration
provides a way for people to hold companies accountable without spending a lot of
money.

Another advantage is when the loss of the consumer is minimal, he can resort to
arbitration in order to ask for payment of damages. This is because litigation costs can
drain resources of an ordinary person.

In the article, a justice of the U.S. Supreme Court wrote that requiring the
availability of classwide arbitration interferes with the fundamental attributes of
arbitration and that arbitration agreements should be enforced according to their terms.
It is also stated in the article that arbitration clauses could outlaw class actions even if a
class action was the only realistic way to bring a case. Arbitration is favored over class
suits because the arbitration clauses have become binding between the consumer and
the company. Therefore, both parties must abide by the terms that are stated therein.

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PACHAO, DIANE BLAKE B. ADR QUIZ 2-B

3. Arbitration is the privatization of the justice system. Critique this policy.

Arbitration is the privatization of the justice system. This assumption is both true
and false.

It is true in the sense that some arbitrators use this for profit instead of acting
impartial and fair. Arbitrators sometimes disregard the essence of arbitration in order to
retain customers.

Arbitration also became a way of extinguishing the liabilities of corporations and


institutions. They use arbitration to deprive their victims of all legal recourse. They
influence the arbitrators to rule in their favor thereby denying the victim due process.
Therefore, it is safe to assume that justice can be bought through arbitration.

In arbitration, only those with resources are given justice. In the list of examples
used in this article, almost all of the big companies won over the ordinary person. This is
either due to arbitrators biased opinions or due to petitioners lack of funds. It is also
shown that arbitration would prove to be more advantageous for the company.

The article also quoted William G. Young who said in an interview that business
has a good chance of opting out of the legal system altogether and misbehaving without
reproach. This admission from a judge shows that arbitration is has become a business
rather than a system to deliver justice.

Arbitration is also used by hospitals and nursing care homes to dodge liabilities
from malpractice and wrongful deaths of their patients. This means that only those with
vast resources resort to arbitration. Therefore it is safe to say that arbitration is a
privatization of justice system.

However, this may be false if the previous prejudices mentioned are not present.
Arbitration is a process to provide a speedy and inexpensive disposition of cases. If the
purpose of arbitration is achieved and justice is served then it is not true that arbitration
is a privatization of the justice system.

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PACHAO, DIANE BLAKE B. ADR QUIZ 2-B

4. What are the legal challenges to religious arbitration?

The legal challenges of to religious arbitration clauses includes injustice done to


members of these institutions. They are deprived of fair trial because they are bound to
the doctrines instilled in their beliefs.

Another problem that is portrayed in the article is the use of biblical passages to
resolve the dispute. This constitutes disregard for the laws that are created for peace
and order. The Bible should be used as a guide for the arbitrators not as a law to govern
the parties.

Another issue in using biblical passages to resolve the dispute is the


interpretation. The biblical passages can be interpreted in a way to favor the institution.

Religious arbitration have also been consistently upheld by the judges. This
poses as a threat for the aggrieved party because decisions of arbitrators are difficult to
overturn.

Religious institutions also has different sets of doctrines from secular institutions.
Therefore, it could be difficult for judges to decide against it. It would require an analysis
and interpretation of the doctrines. That would again cross the line that separates the
church from the state.

Another problem tackled in this article is the disregard for the Constitution.
Because of arbitration clauses, people are denied of their civil rights. The line
separating the church and the state is blurred. Religious arbitration is availed of even in
secular disputes.

The article mentioned a Christian doctrine which prevents a member from suing
another member, instead they should settle the dispute inside the church. This leaves
the victim in a dilemma on what he should uphold, his belief or his need for justice.

There is also injustice done to those who undergo religious arbitration. In the
article, it said that some religious organizations stand by the process until they lose, at
which point they turn to the secular court to overturn faith-based judgments. This is
unfair to the aggrieved party who cannot go to court because of the religious arbitration
clause that he agreed to unsuspectingly.

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PACHAO, DIANE BLAKE B. ADR QUIZ 2-B

5. Situate the context of the article locally (Philippine Law). What issues
may arise that prevent utilization of domestic arbitration law to the
problems cited in the article.

In the Philippines, domestic arbitration is still considered a budding concept


although there is already a law passed to support it. The problem is the implementation
of domestic arbitration. Since it is still a new process, there may be many problems that
may come along with it.

One issue that may arise is the unfamiliarity of people with domestic arbitration.
Although Filipinos may have been practicing arbitration over the years, the lack of
knowledge over the terms in domestic arbitration may result to reluctance. There is also
fear that arbitration will not be able to resolve the disputes.

Since it is already prevalent in first world countries, domestic arbitration may also
be used as an escape for big companies here in the Philippines from liabilities. Instead
of relieving the courts of these disputes, domestic arbitration could relieve the
companies of legal responsibilities.

Lawyers also do not recommend arbitration to their clients for fear of losing
income. Profit may deteriorate if arbitration will be resorted to. Or worse, they may be
influenced to bend the law in favor of the company.

Another issue that may be seen in domestic arbitration is the influence of the
church in the lives of Filipinos. The article talked about how religious arbitration caused
injustice to the aggrieved members. Imagine how that would affect to a devout
Christian.

Also here in the Philippines, litigation is resorted to as a last resort to settle a


dispute. Even then, the process of litigation takes years in order for a decision to be
made. Domestic arbitration may prolong this process.

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