AIADA Chairman: Mandatory Arbitration Works

Washington DC August 26, 2008; In an op-ed printed in this week's Automotive News, AIADA Chairman Jim Hudson expressed his unwavering support for mandatory arbitration in sale and lease contracts.

Arbitration allows consumers and dealers to resolve their issues through an appointed, unbiased third party without the expenses, delays, and complications of the court system. If a consumer rejects the mandatory-arbitration clause in a sales contract, the dealer may choose a different style of agreement, or the consumer may choose to do business with another dealer.

But now, auto dealers' right to include binding-arbitration provisions in sale and lease contracts is under attack from Congress. The Automobile Arbitration Fairness Act of 2008 (H.R. 5312) seeks to ban pre-dispute arbitration agreements from the auto sales and leasing process.

AIADA takes this issue seriously and is fighting back by ensuring that members of Congress are fully educated on the detrimental impact this legislation could have on the auto industry. Mandatory arbitration between consumers and auto dealers is one of the most effective forms of dispute resolution. Do you want Congress to make it extinct?