Ask SAM: Arbitration clauses in car sales
July 7th, 2021 by admin
Question: I recently tried to buy a car and during the closing paperwork was given an “Agreement to Arbitrate Disputes” that I found too restrictive and would not agree to sign. I was told this was required with all auto sales and they would not sell me a car unless it was signed. I walked away, and thought I could find another dealership that would not require this, but after multiple phone calls I have yet to find a car dealership that does not require it. Can you help? ~ M.K.Answer: For an answer on this, we turned to local attorney Mike Wells, who writes a column on legal matters for the Journal. Here was his response:
Arbitration clauses in consumer contracts are pretty standard these days after some fairly recent rulings by a number of federal and state appellate courts. For many years, such arbitration clauses were viewed as overreaching. But with the growing costs of litigation many businesses have sought a venue with more predictable results that avoid the courts, which also often have backlogs. All of these factors likely enter into judge’s opinions that mandatory arbitration is a more acceptable venue for all parties.
Click here to read the full article at the Winston-Salem Journal.Posted in: Ask SAM