Amtrak, the national railroad passenger corporation, recently implemented an arbitration agreement that has raised eyebrows and concerns among passengers. This agreement, which is buried deep within the fine print of Amtrak’s website, outlines the terms and conditions that passengers agree to when purchasing a ticket or using Amtrak’s services.
Arbitration is a private alternative to a court proceeding where an arbitrator, rather than a judge or jury, hears the evidence and makes a decision. Companies often include arbitration agreements in their contracts because it is seen as a faster and less costly way to resolve disputes.
However, there are concerns about the use of arbitration agreements in consumer contracts. Critics argue that these agreements limit a consumer’s legal rights and ability to take legal action against a company. In an arbitration proceeding, consumers typically cannot appeal a decision and the proceedings are often kept confidential, which can make it difficult for others to learn from cases and take action.
Amtrak’s arbitration agreement outlines that passengers must agree to binding arbitration, which means they waive their right to a trial by jury or judge. This includes any class action lawsuits. Instead, any disputes between passengers and Amtrak will be resolved by a neutral arbitrator who will make a decision that is binding on both parties.
For consumers, the arbitration agreement means that if they have a complaint against Amtrak, they will not be able to take legal action in a court of law. Instead, they will have to engage in an arbitration proceeding where the arbitrator’s decision is final.
Critics of mandatory arbitration clauses argue that these provisions limit the legal rights of consumers, including their right to a fair trial. They also argue that arbitration proceedings are often biased towards the companies and that consumers are less likely to win significant judgments in these proceedings.
In conclusion, the Amtrak arbitration agreement should be a cause for caution for passengers who use the service. While arbitration can be a less costly and more efficient way to resolve disputes, it can also limit a consumer’s legal rights. Passengers should carefully consider the terms of this agreement and weigh the potential costs and benefits before deciding to use Amtrak’s services.