It mandates that the arbitrator’s fee is to be equally shared by the parties (with no fee cap, meaning RAC could drag the arbitration out indefinitely and make it prohibitively expensive for the plaintiff).
The form contract was presented to him as a non-negotiable condition of his employment.
The decision is already drawing flak from liberal groups and lawmakers, who contend it will stack the scales in favor of corporations. In a statement, Senate Judiciary Committee Chairman Patrick Leahy said, “five members of the Supreme Court struck a blow to our nation’s civil rights laws and the protections that American workers have long enjoyed under those laws.”
Until this Supreme Court decision, consumers and employees had the right, under Section 2 of the Federal Arbitration Act, to go to court and ask a judge to find an arbitration agreement unconscionable or unfair and therefore unenforceable. Although most arbitration agreements are enforceable, court review weeded out the very worst abuses—like imposing exorbitant fees, forcing consumers or employees to travel great distances to arbitrate, or allowing a corporation to pick an arbitrator that is clearly biased in its favor.