Arbitration Agreement For Car Purchase In Washington
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By signing a contract with a mandatory binding arbitration provision, the dealer or lender can seek to resolve any disputes about the contract with an arbitrator, who is usually chosen by the dealer or lender. The arbitrator decides the dispute instead of a court.
Some potential consequences may include: Breach of Contract: If arbitration is a contractual requirement and one party refuses to participate, they may be in breach of the contract. The non-complying party may be held liable for damages resulting from the breach.
The arbitrator's decision can give parties a realistic idea of the outcome of their case. If neither party appeals the decision, it will be binding, like an order by a judge. However, a party unhappy with the arbitrator's decision can request a new trial before a judge.
(1) An agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of contract.
Many auto finance contracts contain mandatory binding arbitration clauses. Some dealers may also ask you to sign separate binding arbitration agreements.
While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
You can always agree to arbitration later if your lawyer advises you it's a good choice in the particular situation you find yourself in. There's no benefit to you in doing so months or years ahead of time.
The law covers only defects that “substantially impair” the use, value, or safety of the motor vehicle. A manufacturer is required to repurchase or replace a vehicle with a 'nonconformity' or 'serious safety defect' after a “reasonable number of attempts” have occurred.
(9) Appeal. (a) The final decision of the arbitrator may be appealed by filing a notice of appeal with the superior court requesting a trial de novo on all issues of law and fact.