What is Arbitration?
Arbitration allows a “neutral” third party to make a decision about your case. It has some advantages and some disadvantages for the consumer. First, it is usually faster than the court process. Second, you don’t need an attorney’s help to go thru it. However, one of the biggest disadvantages is that the consumer seldom wins a “buyback” decision in arbitration. Also, the arbitration systems are usually funded by the manufacturers, so don’t expect it to be completely impartial or fair. Finally, it is not supposed to be binding on the consumer, but some of them say that they are. You have to be very careful about getting caught in an arbitration “trap”.
Arbitration is a formal process conducted by an independent, neutral arbitrator to resolve disputes between two or more parties. In the case of our warranty programs, RWC uses arbitrators experienced in arbitrating residential construction matters. Unless prohibited by law, the decision of the arbitrator under our programs is binding on all parties, including both you and your builder.
Massachusetts has two different arbitration programs, a manufacturer-sponsored arbitration program, and a state-sponsored arbitration program, run by the Attorney General. The Massachusetts Lemon Law provides that manufacturers may set up certified arbitration programs. These programs receive consumers’ complaints and are supposed to attempt to resolve the legitimate ones prior to a lawsuit being filed with a Court of Law. If the manufacturer has properly set up such a program and it is certified by the Attorney General of Massachusetts, then the consumer’s case may first proceed through such a program. However, not all the manufacturers have such certified arbitration programs and many times the vehicle is ineligible for arbitration due to age or mileage, per the arbitration programs’ own rules. The consumer may also request arbitration with the state-sponsored arbitration program within eighteen months from the date of original delivery of the new motor vehicle. However, this process
Arbitration is the referral of a dispute to one or more independent third person(s) who act(s) as judge and jury. In advance of the arbitration, the parties agree to be bound by the arbitrator’s decision. Cases that are arbitrated are generally resolved faster than conventional lawsuits because arbitration is less formal and court congestion is not a problem. However, depending on the circumstances, arbitration is not always in the client’s best interest.
Related Questions
- What is the role of the Hong Kong International Arbitration Centre (HKIAC) in the dispute resolution process regarding CN domain names or Chinese domain names?
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- What Is The Difference Between Court And Arbitration?
