ARKANSAS: New Law Bans Auto Dealers from Requiring Arbitration

Dispute Resolution Journal, May-Jul 2005

At the end of March, Arkansas Governor Mike Huckabee signed into law Arkansas Act 1239, which prohibits motor vehicle dealers from including an arbitration agreement in sales contracts without the consumer's consent. When voluntarily consenting to arbitrate, the law requires the consumer to sign a separate "Waiver of Purchaser's Right to Sue," printed in bold type, which specifically acknowledges that he or she is giving up the right to have disputes decided by a court.

Arkansas Act 1239 also prohibits the submission of a motor vehicle dispute to any forum outside the county in which the car dealer does business.

Copyright American Arbitration Association May-Jul 2005
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