Predispute Arbitration Agreements
If a customer account includes a predispute 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 predispute clause must be immediately preceded by the following language in outline form:
This agreement contains a predispute 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, wi