Sony Corporation is thinking about having purchasers of its PlayStation product sign an arbitration clause that takes away their right to sue in court.What benefit might you reasonably expect Sony to achieve with such a clause?

Question

Quizplus · Accepted Answer

Arbitration clauses typically aim to limit a company's exposure to class action lawsuits by requiring disputes to be resolved through arbitration rather than through court proceedings. This can significantly reduce legal costs and the potential for large-scale legal judgments against the company.

Sony Corporation Is Thinking About Having Purchasers of Its PlayStation