Automakers Forcing Consumers with Lemons Out of Court

Automakers like Kia, Honda, Toyota and Mercedes-Benz are trying to create a secret, private “justice” system as the only remedy for the Lemons they sell — it’s called  “arbitration.”  Arbitrators, who are paid by the automakers for their services, don’t have to follow the law and don’t have to consider the facts.  Their decisions are largely unreviewable by the court system.   Why? According to the law, you — the consumer — knowingly  chose the arbitrator to decide whether your vehicle is a “lemon” or not, and because you had sooo much faith in the arbitrator, you agreed to accept the “risk” that they would not follow the law or consider the facts!  Of course, this is a joke (a sad one) because virtually no consumer 1) understands their purchase contact has them agreeing to arbitrate, 2) does not know what the implications are for arbitrating — or even what the word “arbitration” means, or 3) spends any time considering what will happen if the car is a lemon — they are not thinking about buying a problem but rather a bright and shiny new car.  Well, too bad, say the lawyers for automakers!  You signed it!  Here is another zinger:  the arbitration clauses in car sales contracts don’t cover the automakers, but only refer to the car dealers.  Nevertheless, automakers are now saying the “arbitration clauses” between the consumer and car dealer should be read to cover the automakers too!  Check out the great NY Times article on this:  http://www.nytimes.com/2013/06/16/automobiles/automakers-push-back-against-consumer-protections.html?ref=automobiles&_r=0