Series 51: Pre-dispute Arbitration Agreements

Taken from our Series 51 Online Guide

Pre-dispute Arbitration Agreements

If a customer account includes a pre-dispute arbitration agreement, additional procedures must be followed. Upon signing this type of agreement, a customer agrees to settle any disputes with the dealer by arbitration and to give up the right to sue in court.

Any pre-dispute clause must be immediately preceded by the following language in outline form:

This agreement contains a pre-dispute arbitration clause. By signing an arbitration agreement, the parties agree as follows:

1. All parties are giving up the right to sue each other in court, including the right to a trial by jury, except as provided by the rules of the arbitration forum in which a claim is filed.

2. Arbitration awards are generally final and binding: A party’s ability to have a court reverse or modify an arbitration award is very limited.

3. The ability of the parties to obtain documents, w

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