Dealer Arbitration Clause

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Old Mar 25, 2004 | 01:13 PM
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From: Chicago Burbs
Dealer Arbitration Clause

Reading CrazyTree's threads reminded me of some advice I heard from a consumer fraud lawyer a few years ago. He said that when you're reading over your paperwork before you sign, look for clauses in the contract or any separate agreements that mention arbitration. Apparently it's quite common for dealers now days to try and get you to agree that any serious disputes will be settled via binding arbitration, usually with a service of the dealer's choice. Basically, they want you to sign away your right to sue them.

I was curious if any of you have successfully negotiated-out clauses like this. Or for that matter, walked out on a potential deal because the dealer refused to remove the clause.

Here's an old CR article that mentions this practice.
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