ELI5: Explain Like I'm 5

Mandatory arbitration

Okay kiddo, have you ever played a game with your friends and when there is a problem, you need to agree on a solution? Mandatory arbitration is kind of like that, but for grown-ups who have a disagreement or problem with a company they bought something from or worked for.

When grown-ups sign a contract with a company, sometimes it says that if they have a argument or problem with that company, they have to use something called "mandatory arbitration" to try and solve it instead of going to court.

Just like when you play with your friends, in mandatory arbitration, someone who isn't from the company or the person having the problem (called an arbitrator) listens to both sides of the story and decides what the best solution is.

Some people like mandatory arbitration because it can save them money and time, but others don't like it because they feel like it's not fair or that they don't have as much of a chance to win.

Does that make sense, kiddo?