Binding arbitration when there is a significant power imbalance should be illegal. If it's between two similarly abled parties (e.g. two individuals), it should be fine.

I studied a bit of this in a university course. Between a lot of organizations, binding arbitration is more efficient (i.e. cheaper) than the legal system. If your company wants to make a deal with another company, binding arbitration often makes sense.

Ditto for 2 individuals: If they had to go through the legal system, it could end up being a war of attrition - the one who has more money to pay lawyers wins. Binding arbitration is a way to "level" that field.

The down side (at least in many, if not all, states) is that you have little recourse if the arbiter is totally unfair. With the legal system, you can appeal, etc.

But between an individual and a large company - no way!

In my last job, the (very big) company automatically enrolls new employees into a binding arbitration agreement, but they do give a timeline to opt out. I was surprised I had that option. I even paid a lawyer to review the docs. He said "Yep, you can (and should) opt out. I'm surprised they even gave you that option."