Whenever I sell a car, I always use a arbitration form that lets the customer know that they cannot initiate class action suit against me. On the arbitration form that I use, there is a line that states that I as the seller, will pay the first $1500 in arbitrations fees, should the buyer elect arbitration. Is this correct and legal ? What happens if I remove this sentence ?
This rule if in fact legal and is mandated by the arbitration council, can be unfair to some sellers or service providers, hence we don't make more than $1500 profit on selling the item or providing a service. Malicious buyers can elect this just to financially hurt a seller .
Great question, highdef. While I don't have a direct answer for you, I do recommend checking with an attorney. They have knowledge of the law and will be best able to address your question.
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