The Federal Arbitration Act enacted in 1952 allows businesses to settle disputes in arbitration. Unfortunately, some car dealerships have expanded to mandatory arbitration agreements when selling new or used cars and financing contracts. They expect buyers to sign the contracts to settle future disputes.
If you are planning to buy a car in Illinois, it is important to do due diligence and understand the terms and conditions before you proceed. You should know whether or not you must sign an arbitration agreement. This can help you make informed decisions.
If you have issues with the dealership concerning the arbitration agreement, it’d be essential to speak to an experienced arbitration lawyer, such as JTLG, LLC, for advice and legal counsel. Here is essential information about arbitration agreements and whether you must sign one when purchasing a car in Illinois.
An arbitration agreement is a legally binding clause in which two parties agree to settle disputes out of court. It is an alternative dispute resolution to civil court litigation where the involved parties solve their disputes without filing a lawsuit in court. Arbitration agreements can be proposed additions to contract negotiations.
When purchasing a car and the dealership requires you to sign an arbitration agreement, you automatically enter into arbitration with the dealership to solve any possible disputes. Instead of involving a judge at trial, you will use a neutral third party, an arbitrator. The arbitrator analyzes case facts, following a specific code of ethics.
Many car dealerships opt for arbitration agreements because of the benefits. Arbitration is relatively cheap compared to a lawsuit. The process is brief and confidential. It prevents public scrutiny that comes with a court trial.
Unfortunately, many buyers do not take the time to read agreements. Because some contracts can be long, many car buyers do not read them thoroughly and understand them before signing. The contracts may contain information that protects the dealership if a dispute arises. The buyer may not be able to sue the dealership in court. In many cases, courts refuse to overturn arbitrated decisions. They even step in to ensure the agreement is enforced. This means the arbitration offers the final decision to allow the parties to move forward.
Buying a car is a big decision that involves a lot of money. This is why you should be careful before signing an arbitration agreement because many car dealers would do anything to have you sign the arbitration to allow them to close the sale.
Since the dealership knows that many car buyers do not carefully read contracts, they will leverage this opportunity and have you sign the contract, knowing that the arbitration protects their business. You have limited chances to go to court. Before buying the car, it is important to cross-check and carefully read the contract to understand its components. Also, you have the option to cross out the provision.
Because you cannot sue after signing an arbitration agreement, you will have to solve any disputes through arbitration. This happens if the arbitration is binding because it is enforceable under the law. If not binding, you can pursue the case in court with the help of an experienced arbitration lawyer. Here are the reasons to hire an arbitration lawyer.
While you do not have to hire an arbitration lawyer, it’d be best to consider it because of the complicated processes and challenges of solving disputes. Hiring an experienced arbitration lawyer like JTLG, LLC can help protect your consumer rights and handle the matter.
If you are worried about your rights, facing a party experienced with the arbitration, worried about the outcome, and struggling to handle the process without a lawyer. Johnston Tomei Lenczycki & Goldberg, LLC has experienced arbitration lawyers who can help resolve the process from beginning to end. We help our clients stick to verifiable facts of the case and help them seek the most favorable outcome possible. Want experienced legal representation? Contact us for a free consultation.
Phone Number: (847) 549-0600
Fax Number: (847) 589-2263
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Libertyville, IL 60048
223 N. IL. Rt. 21, Ste. 14
Gurnee, Illinois 60031
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Wheaton, IL 60187