Private arbitration systems extend their authority to outsiders who consent.

Evidence

Although the DDC arbitration system is operated primarily for the benefit of club members, nonmembers who have a dispute with members often request that the club hear their case. In most instances, the board will grant their request as long as the member consents and both parties sign an agreement to arbitrate. — Lisa Bernestein, Opting out of the Legal System, 81

Categorization

• XREF: Connects to the reader’s network-closure theme: the club’s dense internal ties give it authority that spills beyond its membership boundaries — a private justice mechanism inverting Coleman’s third-party logic. — connects to: A private ordering system can enforce contracts entirely outside state law. — Lisa Bernestein, Opting out of the Legal System, 283; Private law governs relations among private citizens and organizations. — G. Alan Tarr, Judicial Process and Judicial…, 152

Related

• Private arbitration can effectively substitute for courts (similarity 0.79)