"Automobile Arbitration Fairness Act" Still Alive
Although certain recent decisions of the U.S. Supreme Court indicate support for the Federal Arbitration Act, 9 U.S.C. § 1 et seq., arbitration is still under attack in Congress. As noted last week, the "Arbitration Fairness Act of 2007" is still alive and moving through committee in the House of Representatives. The "Automobile Arbitration Fairness Act of 2008," which would eviscerate pre-dispute arbitration provisions in auto sales or lease contracts is also moving through committee.
The Automobile Arbitration bill provides that any "controversy arising out of a motor vehicle consumer sales or lease contract," entered after the effective date of the Act "may not be settled by arbitration unless, after such controversy arises, all the parties to such controversy agree in writing to settle such controversy by arbitration." The bill would also require any arbitration award to "include a brief, informal discussion of the factual and legal basis for the award."
The Automobile Arbitration bill provides that any "controversy arising out of a motor vehicle consumer sales or lease contract," entered after the effective date of the Act "may not be settled by arbitration unless, after such controversy arises, all the parties to such controversy agree in writing to settle such controversy by arbitration." The bill would also require any arbitration award to "include a brief, informal discussion of the factual and legal basis for the award."
