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What is Arbitration?

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What is Arbitration?

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Arbitration is the reference 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 there is less bureaucracy and court congestion is not a problem. Contact an attorney at the Hopper Law Firm today regarding your legal questions!

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A. Arbitration is a final, and binding resolution of a dispute by a person called an “arbitrator” or “Neutral”, or a panel of three or more “neutrals”. The courts of the majority of jurisdictions uphold the binding nature of an arbitrator’s judgment to the same extent that they up hold a ruling by a judge.

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The California Lemon Law provides that manufacturers may set up 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 State of California, then the consumer’s case may proceed through such a program before a Complaint is filed with a Court of Law. 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. In those cases, the consumer may file a Complaint with a Court of Law without resorting to the arbitration procedure first.

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