Hanover, Md. — The National Association of Dealer Counsel (NADC) Board of Directors has submitted written comments to the House Judiciary Committee to express opposition to the Automobile Arbitration Fairness Act of 2008 (H.R. 5312).
The March 17 letter signed by NADC President Michael Charapp challenged the assumption underlying the legislation that motor vehicle dealers routinely use predispute arbitration clauses because arbitration favors dealers. In fact, NADC’s members, who are primarily lawyers for dealers, have widely divergent opinions on the benefits of arbitration. While some NADC members believe that arbitration’s streamlined processes are beneficial, other NADC members believe that arbitration is more expensive than litigation and yields decisions that are not as solidly grounded in legal precedent.











