Arbitration Clauses - Don't Sign Away Your Legal Rights!
When purchasing a used car, truck, or motorcycle, don't sign away your legal rights! Most car dealers today have an arbitration clause and/or jury waiver included in your stack of sales documents when they sell you a used vehicle. It may be included on the front or back of your sales contract, often in small print, or in a completely separate document.
What is an arbitration clause and why shouldn't you sign one? By signing an arbitration clause, you are agreeing with the car dealer that if you have problems with your vehicle, you will not file a lawsuit in Court, but you will instead file your claims with a private arbitration company. This means that instead of having your case decided by a jury in a courtroom, your case will be decided in a conference room by an arbitrator paid for by the business. In fact, many arbitration clauses actually require you to the arbitration fees and sometime the attorney fees of the dealership if you lose. Worst yet, the arbitrator is not required to apply the rules of evidence, or Ohio law, and the arbitrator's decision will likely be enforced in most cases whether or not the arbitrator actually followed the law. In the end, the arbitration process can actually take longer and cost you more money than if you had simply filed your claims in Court. So, even if you win the arbitration and eventually get it enforced in Court, you are likely to have a long, hard fight to get from point A to point B. This means more time with a defective vehicle.
What is a jury waiver and why shouldn't you sign one? By signing a jury waiver, you are agreeing with the car dealer that if you have problems with your vehicle, you can file a lawsuit but that a judge and no a jury will decide your case. While juries can be unpredictable, they are often your best bet in auto fraud cases involving concealed defects and or frame damage because they can relate to you and the situation that you were placed in by the car dealer.
In the end, the best way to avoid an arbitration clause or jury waiver is not to sign one, but if you have already signed one, don't lose hope. Depending on the language of the arbitration clause or jury waiver, you may still be able to get your claims into court and/or before a jury. If you think that you may have claims against a local dealer, but signed an arbitration clause or jury waiver, consult a local attorney before giving up hope.
On the other hand, if you are about to purchase a used vehicle, then beware! Pay attention to all of the documents that you sign, because you could be signing away your legal rights without even knowing it.
Beth Wells
Helping Consumers Get Rid of Lemons, 9 Years Running
