Last post on Jul 06, 2013 at 8:54 AM
You are in the Automotive News & Views
What is this discussion about?
#1 of 3 Mandatory Arbitration from New Car Dealers
Jul 05, 2013 (5:31 pm)
Recently, I moved from Ohio to Colorado. In all of my transactions in Ohio, I have never been asked to sign away my rights to sue in court. In an attempt to purchase a new Honda in Colorado, we got all the way through the deal process and well into the signing process when the financial guy pulled out an Arbitration Agreement. I refused to sign it and he said no one has ever questioned it. He went to ask someone else and returned to tell me that without a signed Arbitration Agreement form, he could not sell me the car.
Is this a new thing or is this localized to certain states? I know the AT&T Supreme Court decision last year basically said these were enforceable regardless of what the company does. Just looking for some guidance here.
#3 of 3 Re: Mandatory Arbitration from New Car Dealers [Stever@Edmunds]
by MrShift@Edmunds HOST
Jul 06, 2013 (8:54 am)
The problem with binding arbitration is the consumer getting control of who does the arbitration.
If I don't get to REJECT an arbitrator I don't like for some reason, then I won't sign the agreement. Last thing you need is an arbitrator in the pocket of the automaker.
I've done a lot of hearings involving arbitration and while sometimes it is quite fair to all parties, it can also be a totally corrupted system.
How so? If the arbitrator doesn't rule mostly in the automaker's favor, they can simply not send them anymore work.
A court-appointed arbitrator might be okay.