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Arbitration Agreements when purchasing a Car

Here is a news clip from NBC 12. John Cole Gayle, Jr. is a Consumer Attorney who dislikes arbtitration agreements because you waive your right to a jury trial. The arbitrator is chosen by the dealer. Does this seem fair to the consumer? Dispute signing the contract with the arbitration clause.

Full html link: http://www.nbc12.com/story/20157528/arbitration-agreements-read-the-fine-print

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Mike E, Stafford 07/19/2014 04:47 PM

I was in the Harley dealership for the whole afternoon working out the deal with cash in hand and my trade-in. Got to the "sweatbox", signed the titles and I probably would have purchased their extended warranty policy, too; after all, this was for a used bike. But when I asked why did I have to sign their arbitration agreement, they balked. "Well, why wouldn't you want to sign it?" I said because I am giving up legal rights which, at this time, I don't even know I have. "Well, I've been doing this for 14 years and you're the first person who has ever asked that question." Okay, so can I buy the bike without signing this document? It took several tries to get a straight answer to that simple question. Eventually, she said: "Well, I'll have to talk to the manager about that." OK. He comes in and, after listening to more of the same between the sweatbox lady and me over this, he states his version of "Well, I've been doing this for 14 years...", but then adds: "It's a way for us to settle any problems that come up by sitting down at the table like adults. If you don't want to sign it, then, I don't know, something else is probably going on." I chose not to react to that statement. But, looking down at the table, I said well let me absorb this for a minute and look at the extended warranty, and as I looked up, he had walked off from me in mid-sentence. Needless to say, I left there shortly thereafter - riding my old bike and with my cash still in my pocket.

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John Gayle 07/25/2014 12:42 PM

Mike: I am very proud of you. If more people did what Mike did by walking out, these businesses would realize that they are losing money due to their attempts to avoid responsibility via a civil trial by forcing people into arbitration. Indeed, if we had more "Mike's" we might get to a point where dealerships advertise that they have such faith in their products and service that they do not need forced agreements like ___(put in the name of a competitor). Mike, I'd buy you a drink if I could.

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