Automakers Push Back Against Consumer Protections
Source: New York Times
... Some automakers have started to challenge class actions — and to a lesser extent, lemon laws — by trying to force consumers to agree instead to a binding arbitration process.
... In a typical lemon-law case, a lone consumer starts with arbitration, generally choosing among arbitration firms approved under each state’s lemon law. If the outcome is unsatisfactory, there are provisions to appeal, including the courts.
But now a few automakers are trying to do away with those resources by taking advantage of something consumers have done for decades when buying a vehicle: signing an agreement with the dealer to use arbitration to resolve disputes. Some automakers — including Honda, Toyota and Mercedes-Benz — are arguing that these sales agreements cover them, too.
Consequently, the automakers say, consumers may not use class-actions or lemon laws to get restitution. Instead, they argue, the consumer must use binding arbitration, in which the decision is final.
Read more: http://www.nytimes.com/2013/06/16/automobiles/automakers-push-back-against-consumer-protections.html
