President Signs NADA Voluntary Arbitration Bill

Over the weekend, the President Bush signed into law the National Automobile Dealers Association's top legislative priority, making arbitration voluntary in manufacturer-dealer disputes, according to NADA Newswire.

"This is the biggest legislative victory for NADA in at least 50 years," said H. Carter Myers, III, NADA chairman. "We were persistent and we prevailed. This will help new car and truck dealers all over the country."

According to NADA, automobile and truck manufacturers will no longer be able to use mandatory binding arbitration clauses in franchise contracts to circumvent dealers' state rights.

NADA's voluntary arbitration provision is included in the Conference Report for the Department of Justice Reauthorization bill passed the Senate on Oct. 3 and the House of Representatives on September 26, according to NADA Newswire.