The Legality Morality and Community Welfare of The CFPB Arbitration Rule Essay

Running head: FINAL TERM PAPERFINAL TERM PAPER 19Integrating Values - The Legality, Morality, and Community Welfare of The CFPB Arbitration RuleAbstractThis report will focus on the Consumer Financial Protection Bureau (CFPB) arbitration rule. This is a rule that bars financial companies from using arbitration clauses so that consumers should be prevented from pursuing their legal rights in court. This report will examine the reason for this agency\'s foundation and the basis on which this rule was formed. The legal applications of the arbitration would be discussed under rulemaking and adjudication. The ethical challenges that the rule would undergo would be explained in further sections regarding legal positivism and utilitarianism theory. Another similar theory of own choice would be presented for further elaboration to decide the ethicality of arbitration. Community welfare would be investigated for the agency\'s rule and whether it provides well-being and empowerment. A conclusion with recommendations would be provided so that maximized happiness for numerous stakeholders could be ensured.Table of ContentsIntroduction 3Background Information Regarding Topic 5Legal Section 7Introduction to Legal Section 7Statement of Relevant Legal Principles and Rules of Law 9Legal Conclusion 10Ethics Section 11Introduction to Law and Ethics 11Evaluation of Agencys Rule under Utilitarianism Ethical Theory 14Evaluation of Agencys Rule under One More Ethical Theory 17Personal Thoughts on the Agencys Rule 18Community Welfare Section 20Conclusion 22References 23Integrating Values - The Legality, Morality, and Community Welfare ofThe CFPB Arbitration RuleIntroductionThe law and ethics are interconnected since the violations of ethical behaviors need legal enforcements for their deterrence. The standards of behaviors are set by the law and its legal jurisdictions so that ethical behaviors are observed within the organization and the individual level. It becomes difficult to determine under what circumstances particular actions are considered ethical that might directly affect the public. Ethical management is crucial for not only economic profits but society at large. Business ethics are also intertwined with the business dealings with the world, involving all stakeholders where dealings with one stakeholder might have an indirect and unintentional effect. The concern rises for human morality, vice and virtue, and wrongdoing and fairness.This analytical paper would be a \"3 value\" analysis of law, ethics, and community welfare. When business or agency ethics are discussed, the set of rules that define what is right and wrong are highlighted since a culture, grouping of attitudes and feelings are determined as rightfully ethical within a working place. If a conflict among these is witnessed, it creates a climate of clashing of interests between the stakeholders, bribes, a battle of loyalty and integrity. The ethical actions are also stretched to the arena of social responsibility since the society where a business or agency operates should be answerable for the community\'s welfare. Social responsibility is the compulsion for the policy or decision-makers to take actions that would impact welfare and improvements (Singh & Singh, 2013).The current topic of the paper, which is the arbitration rule of Consumer Financial Protection Bureau (CFPB) and its deactivation from the US government so that consumers cannot file lawsuits against the banks or any relevant financial intuitions if they experience any illegal actions, is the highpoint for the analysis. CFPB consolidated federal consumer protection responsibilities launched by the Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010 (Copeland, 2010). On July 10, 2017, CFPB proclaimed a new rule under which the use of mandatory arbitration clauses for seeking justice in the court by the common public was barred from being applicable (Swanson, 2017). The rule\'s main purpose was to allow the consumer to use lawsuits against the companies, especially consumer financial products like credit…

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…representation on a pro-bono basis cannot provide justice since it would implant financial constraints when solving legal issues. The offended consumers, who have now lost the right to participate in combined action lawsuits, can take the agents\' help. The agents can provide information regarding financial arbitrations by keeping consistent with governmental democratic means and ethical policies. The community will learn what arbitration means in actual terms and be careful when entering into a contract.Community welfare can be maximized when the government can take good care of its citizens. It must ensure that its appointed government officials make the right ethical decisions for community well-being to observe social empowerment on a larger scale. Making the right use of authority for only the prospective social welfare should be the ultimate choice for governmental and administrative agencies.ConclusionBy concluding that legality and morality are the two basic essential principles for community well-being and enablement, it would be appropriate to say that CFPB\'s arbitration rule affected various society segments positively and negatively. I believe that arbitration can positively impact society if we closely examine the workings of the systems. It appears that the justice system is only for the benefit of specific segments of the society and not for the underprivileged ones; hence, solutions are needed to challenge this situation. My recommendation is that the Federal Arbitration Act (FAA) should be altered to eliminate mandatory arbitration. The arbitration should be between the two ailing or affected parties to better arrange the required conditions of the desired agreement. If it is unsuccessful, then the aggrieved party should be permitted to look for compensation from the court. However, for this change to become effective, time is required. The Forced Arbitration Injustice Repeal Act bill has not been passed as law until now, which means that Americans will have…