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Arbitration is a private, informal process by which all parties agree, in writing, to submit their disputes to one or more impartial persons authorized to resolve the controversy by rendering a final and binding decision called an Award.
Arbitration is a process whereby the dispute between the vehicle manufacturer and the consumer is resolved by a neutral third party, an arbitrator. In California, many manufacturers offer a California state-certified arbitration program.
Arbitration can only take place if both parties have agreed to it. In the case of future disputes arising under a contract, the parties insert an arbitration clause in the relevant contract. An existing dispute can be referred to arbitration by means of a submission agreement between the parties.
This law provides that arbitration agreements are generally valid and enforceable. The major exception to this provision is that the arbitration agreement is not enforceable if it violates the general law of contracts ? which applies to all contracts under the law of the state that governs the agreement.
Section 4 of the Federal Arbitration Act (FAA) says ?a party aggrieved by the alleged failure, neglect or refusal of another to arbitrate under a written agreement for arbitration may petition any U.S. district court ... for an order directing that such arbitration proceed in the manner provided for in such agreement.?
After arbitration is completed and the arbitrator enters an award, the process the moves toward enforcing the award. In particular, the prevailing party in arbitration may then seek to have a court confirm the award and enter it as an enforceable court judgment.
While you technically have the choice not to sign an arbitration agreement that appears to be skewed more to your employer's benefit, the employer can simply rescind its offer of employment if you refuse to sign.
Unless otherwise provided in an agreement of the Parties, (1) an Arbitrator should not discuss a case with any Party in the absence of every other Party, except that if a Party fails to appear at a hearing after having been given due notice, the Arbitrator may discuss the case with any Party who is present; and (2) ...