Critics say new rule favors contractors; builders contend it will make complaint process more efficient 
A new law, signed by Gov. John Engler on July 31, makes it mandatory for consumers to go to arbitration if the builder seeks negotiations and provides a third party to conduct them. Previously, the Michigan Department of Consumer and Industry Services handled all consumer complaints by holding formal hearings.

By Caroline E. Mayer The Washington Post. Arbitrators can limit an aggrieved individual's access to a company's documents, thus possibly reducing support for the complaint. Arbitrations are decided in private. Decisions are kept confidential, so consumers don't necessarily learn what the arbitrator based a decision on. And many consumer agreements call for the arbitration firm to be chosen by the company being complained about.

By Caroline E. Mayer The Washington Post. Arbitrators can limit an aggrieved individual's access to a company's documents, thus possibly reducing support for the complaint. Arbitrations are decided in private. Decisions are kept confidential, so consumers don't necessarily learn what the arbitrator based a decision on. And many consumer agreements call for the arbitration firm to be chosen by the company being complained about.

By Caroline E. Mayer Washington Post Staff Writer.

As an arbitrator, you're going to get work as long as parties choose to use you, and if this is your career or it makes up a good part of your practice, then if you render a decision that is unpopular" with parties that frequently use arbitration, they "may not choose to use you again."…The homeowner is convinced she won't get a fair hearing.

Link: http://www.washingtonpost.com/wp-dyn/articles/A64365-2002Jul13.html