Private arbitration can effectively substitute for courts
Evidence
Unless the club opts not to hear the case, the member may not seek redress of his grievances in court. If he does so, he will be fined or expelled from the club. Furthermore, since the agreement to arbitrate is binding, the court will not hear the case. — Lisa Bernestein, Opting out of the Legal System, 40
Categorization
- XREF: Connects to the reader’s interest in private ordering and how communities circumvent formal legal systems. — connects to: Private arbitration can impose punitive damages to deter breach where courts cannot.; Private arbitration systems resolve disputes without public accountability.; Private arbitration outcomes affect market behavior even without published precedent — Lisa Bernestein, Opting out of the Legal System, 248 (+17 more)
Related
- Private dispute resolution excels through speed, low cost, and secrecy. (similarity 0.87)
- Arbitration’s secrecy lets wrongdoers minimize reputation costs while right-holders gain speed and cheapness. (similarity 0.86)
- Private arbitration beats courts on speed, cost, and secrecy. (similarity 0.84)
- Private arbitration systems resolve disputes without public accountability. (similarity 0.83)
- Secrecy of arbitral disputes preserves a party’s creditworthiness and reputation. (similarity 0.82)
- Private arbitration outcomes affect market behavior even without published precedent (similarity 0.82)
- Private arbitration systems reduce cross-border transaction costs among traders. (similarity 0.81)
- A private tribunal can enforce judgments through instantaneous reputational publicity. (similarity 0.80)
- Arbitration secrecy hides disputes from public view once judgments are paid (similarity 0.80)
- Private arbitration systems extend their authority to outsiders who consent. (similarity 0.79)
- Publicizing arbitration awards would destroy the informal flexibility that makes the system work. (similarity 0.79)
- Arbitration judgments are enforced through public shaming and cross-bourse reciprocity. (similarity 0.79)
- Diamond industry’s private law succeeds by enforcing judgments faster than courts. (similarity 0.79)
- A private ordering system can enforce contracts entirely outside state law. (similarity 0.78)
Broader Connections
- Private arbitration outcomes affect market behavior even without published precedent
#corroborates(0.85) — Lisa Bernestein, Opting out of the Legal System, 248 - Private arbitration can impose punitive damages to deter breach where courts cannot.
#expands(0.82) - Arbitrators familiar with industry custom resolve disputes more predictably than judges
#corroborates(0.80) — Lisa Bernestein, Opting out of the Legal System, 236 - Mafia commissione functioned as a private arbitration forum among families
#exemplifies(0.80) - Private arbitration systems resolve disputes without public accountability.
#qualifies(0.78) - Arbitration judgments are enforced through public shaming and cross-bourse reciprocity.
#expands(0.78) — Lisa Bernestein, Opting out of the Legal System, 93 - Secrecy is the key reason dealers prefer arbitration over courts.
#corroborates(0.75) - Arbitration’s secrecy lets wrongdoers minimize reputation costs while right-holders gain speed and cheapness.
#qualifies(0.75) — Lisa Bernestein, Opting out of the Legal System, 81 - Reputation can substitute for legal enforceability in evaluating contracts.
#corroborates(0.72) — Lisa Bernestein, Opting out of the Legal System, 213 - Public humiliation substitutes for weak legal enforcement of debts
#corroborates(0.72)