Arbitration: Understanding the Benefits, Risks, and Best Practices

Arbitration agreements have become a common tool for dealerships seeking to manage legal risk and resolve disputes more efficiently. However, simply having an arbitration agreement is not enough. Dealers must understand how arbitration works, its advantages and limitations, and the common mistakes that can undermine its effectiveness. In this course, you'll learn the fundamentals of arbitration, including how arbitration differs from traditional litigation, the role of the Federal Arbitration Act, and the impact arbitration agreements can have on class action exposure. We'll also discuss common drafting issues, enforcement challenges, and practical considerations for implementing arbitration agreements within your dealership. Whether you are an owner, manager, or compliance professional, this course will help you better understand arbitration as a risk management tool and how it may fit into your dealership's overall compliance strategy.