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The binding arbitration agreement meant that they were legally obliged to bring their claims before an arbitrator – a lawyer chosen and paid by the UEI. There would be no chance to testify before the hearing, no discovery process that could allow their lawyers to detect misconduct, and essentially no way to appeal the arbitrator`s judgment.1 Jacob, for example, invested his time, money and energy in a university he believed would lead to a career in the tech sector. Instead, according to investigative journalist Molly Hensley-Clancy, he found himself without the skills or the job — but with considerable debts. When he and other disillusioned classmates tried to unite to hold the school to account — a for-profit corporation called UEI College in Long Beach, California — they discovered that among the enrollment papers they signed, there was a provision that prohibited them from going to court. Instead, the gag clauses prohibit students and alumni from sharing information with someone about their complaint — or about the complaint handling process. While confidentiality agreements are often involved in dispute resolution, requiring consumers to keep their complaints secret appears to be a new strategy for companies to prevent stories of disputes from reaching the media or law enforcement authorities themselves. Like the requirement for individual processes rather than groups, the policy incorporates a firewall between unauthorized students, which reduces the likelihood that they will be informed of each other`s complaints and prevents them from working together to find a better solution. Go-it-alone clauses are usually included in an arbitration clause. As noted below, the Midwest Technical Institute includes in its registration agreement a section stating that a plaintiff cannot be part of a class action or enforce consolidated rights with others.
The Cortiva Institute simply explains that each problem is solved by individual and binding arbitration, a clarification that, as stated above, may be superfluous. Out of a total of 271 institutions in the sample, 207 are for-profit, thirty are public institutions and thirty-four are long-standing non-profit institutions. (Three institutions that have recently been transformed into nonprofits are classified as for-profit in this report because that`s where their business processes have evolved).17 The high return on investment of for-profit institutions is largely due to the fact that some for-profit schools are subject to state disclosure requirements, which makes it possible to collect registration contracts in bulk….