Consumer Arbitrations: Consumer Lawyer
Almost all consumer contracts contain arbitration clauses, mainly with the American Arbitration Association as the designated body trusted with the responsibility of processing the dispute. Under AAA rules the arbitration must be completed in 30 days with limited discovery, that is, at the discretion of the arbitrator. The usual cost to the consumer is about $400 for the complete arbitration.
Consumer arbitration’s filed under the American Arbitration Association are significantly different than litigation that you will experience in the Superior Court in the State of New Jersey. Initially, there are very specific consumer rules for arbitration which have been promulgated by the American Arbitration Association. Most consumer claims fall under this “Expedited Consumer Rules”.
The first step is the consumer should file a demand for arbitration. The demand for arbitration should go by regular and certified mail to the business and a copy should be sent to the American Arbitration Association. The charge for consumer arbitration is $375 which is the responsibility of the consumer. If the arbitration agreement does not require the consumer to pay a fee, the consumer can file an arbitration for no filing fees.
It is now the responsibility of the business to reply and usually the American Arbitration Association receives the complaint, opens of file and notifies the business that they have approximately seven days to respond. The business is entitled to one seven-day extension to respond to the consumer complaint. They do not have to file an official answer but they do have to respond with the correspondence from them individually or a lawyer that they were going to be proceeding forward in the arbitration. If the business fails to provide a response, they are notified by the American Arbitration Association that they are no longer welcome to arbitrate their claims in that forum. If they do file a response or notify the American Arbitration Association that they will be handling the claim, a hearing will be set up with the consumer, the business and their legal representatives to schedule any potential discovery and a hearing date.
Consumer arbitration’s filed under the American Arbitration Association are significantly different than litigation that you will experience in the Superior Court in the State of New Jersey. Initially, there are very specific consumer rules for arbitration which have been promulgated by the American Arbitration Association. Most consumer claims fall under this “Expedited Consumer Rules”.
The first step is the consumer should file a demand for arbitration. The demand for arbitration should go by regular and certified mail to the business and a copy should be sent to the American Arbitration Association. The charge for consumer arbitration is $375 which is the responsibility of the consumer. If the arbitration agreement does not require the consumer to pay a fee, the consumer can file an arbitration for no filing fees.
It is now the responsibility of the business to reply and usually the American Arbitration Association receives the complaint, opens of file and notifies the business that they have approximately seven days to respond. The business is entitled to one seven-day extension to respond to the consumer complaint. They do not have to file an official answer but they do have to respond with the correspondence from them individually or a lawyer that they were going to be proceeding forward in the arbitration. If the business fails to provide a response, they are notified by the American Arbitration Association that they are no longer welcome to arbitrate their claims in that forum. If they do file a response or notify the American Arbitration Association that they will be handling the claim, a hearing will be set up with the consumer, the business and their legal representatives to schedule any potential discovery and a hearing date.