Gustavo Ballvé on May 29th, 2012
Food for thought, Home, Mental models, Portfolio Management, Risk management

Dealbook.com’s guest columnist, Andrew Pincus, defends arbitration as an option to class-action lawsuits and discusses a recent US Supreme Court decision that can, and probably will, make it easier for arbitration clauses to prevent class-action lawsuits. The debate as seen by the comments section is as colorful as it is important: it isn’t crystal-clear which cases are better solved by arbitration and which by lawsuits, class-action or small causes. While the most obvious impact is for corporate affairs in the US, it’s an interesting issue for Brazil as well. One never wishes to be in such a situation, but the devil is always in the details… In the end, that great Buffett axiom “risk comes from not knowing what you’re doing” does include “risk comes from not reading what you sign”.

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