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