Automakers Trying to Force Binding Arbitration

By: Jeffrey Lapin

Some automakers are trying to make consumers submit to binding arbitration instead of pursuing their claims in the courts.

"Now a few automakers are trying to do away with those resources by taking advantage of something consumers have done for decades when buying a vehicle: signing an agreement with the dealer to use arbitration to resolve disputes. Some automakers — including Honda, Toyota and Mercedes-Benz — are arguing that these sales agreements cover them, too.

Consequently, the automakers say, consumers may not use class-actions or lemon laws to get restitution. Instead, they argue, the consumer must use binding arbitration, in which the decision is final."

Read the full article by Christopher Jensen / NY Times: Automakers Push Back Against Consumer Protections

This is very troublesome if courts uphold these agreements and other automakers start trying to force binding arbitration. Arbitration always favors the corporation over the individual.

ABOUT LAPIN LAW OFFICES

Lapin Law Offices represents consumers in Lincoln and throughout Nebraska. If you have been injured, abused by a debt collector, harassed by a telemarketer or have a problem with your credit, please call us at 402-421-8033 anytime (24/7) or submit your information or question online: Contact Us. We offer a free initial consultation and do not collect a fee unless we get money for you.