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Is Auto Arbitration Mandatory?

Monday, March, 28, 2011


Auto arbitration is mandatory when it is stipulated by an arbitration clause in your auto sales contract or auto insurance policy. Even without the clause, some states require arbitration before the issue can be heard in court. Auto arbitration is a way of settling disputes between an auto insurance company, auto manufacturer or dealer, and the purchaser(s). Arbitration is often the preferred means of dispute resolution over filing suit for auto claims because it allows both parties to resolve conflict without the delays and expense of litigation.

Arbitration clauses are common and allow companies to keep legal fees from getting out of hand. With arbitration, there is no jury and no costly legal process. Although no judge is present, you will have the opportunity to hash out your differences and then come to a compromise. Unlike mediation, agreements reached through arbitration are legally binding and therefore are fully enforced by the courts.

If you are in need of an auto arbitration attorney, you should make sure that you choose someone who has the experience and knowledge to explain the process and will help you chart the most effective course of action. A good arbitration attorney will ensure your rights are protected, help you recover costs, and ultimately encourage a satisfactory settlement.

You can learn more about arbitration using the resources available on this website. Then, you can decide your next steps. If you have questions or want a consultation, you can use Arbitration.com to find a list of reputable arbitration attorneys near you.