Download PDF Michael B. Bernstein, Justin P. Hedge, and Francesca Pisano†I.               Introduction Antitrust merger enforcement has become increasingly aggressive in […]
Download PDF Benjamin Lo†Introductory Note In 2008, the Securities and Exchange Commission made waves by deciding to regulate the
Michael Springer:
Recently, the Supreme Court heard oral arguments in the suit between AT&T and Vincent and Liza Concepcion on whether the Federal Arbitration Act preempts California contract law. This case raises a policy issue that will not necessarily be answered by the Supreme Court: the efficacy of the class action lawsuit. While the class action definitely serves a significant purpose, there are other methods of solving the problem it seeks to address. In fact, the very arbitration clause the Supreme Court of California struck down as unconscionable can both serve the same function as a class action suit and do so in a manner that is arguably better for the consumer.
Class action suits serve two main functions. The class action allows plaintiffs to pursue a legal claim that they otherwise would not, and the class action provides incentives for companies to behave in socially desirable ways. The first of these functions, while ostensibly served, hardly carries weight in the world today.
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