Public Citizen Report - Home Court Advantage |
Wednesday, 20 May 2009 |
How the Building Industry Uses Forced Arbitration to Evade Accountability
New home buyers are told (often at the last minute) that they will receive a warranty, which is often characterized as a âgiftâ or "bonus" ...warranties dictate that any disputes between buyers and builders must be settled through mandatory binding arbitration, or forced arbitration. This privatized adjudication system provides the ultimate home court advantage for builders and warranty companies. Arbitration firms rely on builders and warranty firms for their business. They have every incentive to keep builders and warranty companies happy. A promotional brochure for AAAâs spring 2009 construction conference advised builders not to miss the opportunity to hear about âHow you can control the arbitration process through advocacy and by drafting appropriate clauses for your contractsâ and promises tips on âidentifying the right arbitrator for your case.
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