Frequently Asked Questions

Arbitration

Does OADA recommend a particular arbitration agreement?

No.  Arbitration agreements should be evaluated to determine whether they are    “unconscionable”.  Your evaluation should be a two step process:

• First, review the terms of the agreement.  Are they fair and reasonable? If not, the agreement may be determined “substantively unconscionable” by Ohio courts.

• Second, think of your consumer base.  Is it likely that your customer will not understand the arbitration agreement due to factors such as age, education, intelligence, business acumen, experience in similar transactions, and how you will explain the terms? If the agreement favors your dealership to the detriment of a consumer who has less education, intelligence or experience, Ohio courts may find that the arbitration agreement is “procedurally unconscionable”.