Dispute Resolution and Your Dealership


As a former dealer I understand that attorneys are non-income producing expenses to your dealership. Many, if not most, consumer complaints can be managed and settled at a dealership level prior to your telephone call to an attorney’s office. A good mediation, arbitration and jury waiver provision in your dealer documents will assist in stream lining the consumer complaint and dispute process. Provisions providing for mandatory mediation prior to litigation, binding arbitration keeping the complaints out of court, and a jury waiver provision are the first steps in protecting your dealership in consumer disputes.

If you already have dispute resolution provisions in your dealership, USE THEM. If you do not have provisions providing for mediation, arbitration and a jury waiver, or have any questions regarding these provisions, contact your dealership’s counsel regarding the same. You may also contact Kayla Mudge with my office at kmudge@kpsds.com and we will assist in providing you with provisions that work for your dealership or answer any questions you may have.


Effective September 1, 2014, the American Arbitration Association will present its Consumer Arbitration Rules specifically governing consumer agreement disputes. Any business intending to submit disputes to AAA for administration must register with the AAA Consumer Clause Registry.

If your dealership wishes to submit disputes to AAA, your dealership must submit the dealership’s arbitration clause for review. This submission must be accompanied by a nonrefundable review and registry fee. The AAA will review clause submissions for compliance with AAA’s Due Process Protocol. This Protocol lists 15 principles constructed to ensure the fair treatment of consumers under dispute resolution programs. AAA may decline to administer a dispute if your arbitration clause does not conform to the Protocol or the dealership does not comply with the registration requirements. Once determination has been made that the clause is compliant, the AAA will administer disputes arising out of that clause, and the business will be included on the publicly-accessible Consumer Clause Registry. The Registry will provide the dealership’s name, business address, the dealership’s arbitration clause and additional documents that may be related to the clause.


  • Clauses submitted to the AAA within the 2014 calendar year, the fee is $650.00 per clause, which covers the cost of appearing on the Registry through 2015. A yearly fee of $500.00 will be charged to maintain each individual clause on the Registry for each calendar year thereafter.
  • For clauses submitted within the 2015 calendar year: The fee is $500.00. A yearly fee of $500.00 will be charged to maintain each clause on the Registry for each calendar year thereafter.

For a demand for consumer arbitration received by the AAA pursuant to an arbitration clause not previously submitted to the AAA for review and placement on the Registry: The fee is $250.00, in addition to the review and Registry fees described above, for an expedited review of the clause.

To register or for more information visit: www.adr.org/consumerclauseregistry.