Agreement To Arbitrate Dealership
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FAQ
A mandatory arbitration agreement should identify the rules, procedures, and evidentiary guidelines to be applied. Many agreements opt for a particular forum's rules and procedures. If there are any rules that the parties want to opt out of (e.g., a limitation on discovery), state as much in the arbitration agreement.
Arbitration is a process whereby the dispute between the vehicle manufacturer and the consumer is resolved by a neutral third party, an arbitrator. In California, many manufacturers offer a California state-certified arbitration program.
An employee who signs an arbitration agreement promises to pursue any legal claims against the employer through arbitration, rather than through a lawsuit. It might not sound like a big deal when you're just starting a new job and don't see any legal disputes on the horizon.
By signing the contract, the consumer is agreeing to binding arbitration to settle any future dispute and also waiving the right to sue or appealeven if the dealership committed fraud.