Death by Arbitration – mandatory (forced) arbitration clauses in contracts (new home sales and home repair) are NOT consumer friendly – they are a tool used to bludgeon the homeowner into submission – with little legal recourse – read this Foundation Repair Mandatory Arbitration horror story as written by a consumer friendly lawyer.
U. S. Department of Housing and Urban Development
HUD’s policy on approving 10 Year Warranties permits binding arbitration as an acceptable available remedy for complaint resolution. However, the Department precludes binding arbitration as the sole remedy. All Acceptable warranty plans must not limit the homebuyer to arbitration nor prohibit them from using the court system.
“If arbitration were in any way beneficial to consumers, it could be made an option and consumers would choose it.”
Richard Alderman, Director, Consumer Law Center, University of Houston Law Center