Tuesday

Arbitration can take away your lemon motorcycle rights and stick you with a bad bike

Did you know that some motorcycle dealers won't sell you a car unless you agree you won't sue them if they rip you off? It's true, but it doesn't have to be that way.

A bill was introduced in the US Senate and the US House of Representatives today to stop big business from taking advantage of US citizens by their growing routine use of fine-print mandatory binding arbitration clauses that take away your basic right to go to court. Americans need this law.

What follows is the press release issued by the National Association of Consumer Advocates. It explains what some of your legislators want to do to protect you from getting ripped off. Please read it and then write your senator or representative and tell them that you want them to vote FOR the Arbitration Fairness Act so your legal rights can still be protected.

Contact:
Alexandra Fetissoff (Sen. Franken): 202-224-4645
Kate Hansen (Sen. Blumenthal): 202-224-2823
Andrew Phelan (Rep. Johnson): 404-593-9126

Sens. Franken, Blumenthal, Rep. Hank Johnson Introduce Legislation to Protect Legal Rights of Consumers

Bill Would Remedy Supreme Court Ruling, Restore Consumers’ Rights to Justice Through Courts

WASHINGTON, D.C. [05/17/11]—Today during a press conference, U.S. Sens. Al Franken (D-Minn.) and Richard Blumenthal (D-Conn.), and U.S. Rep. Hank Johnson (D-Ga.) announced the introduction of legislation that would restore consumers’ rights to seek justice through the courts. The Arbitration Fairness Act would eliminate forced arbitration clauses in employment, consumer, and civil rights cases, and would allow consumers and workers to choose arbitration after a dispute occurred.

“Workers and consumers should never be forced to give up their rights to get hired for a job, or to get a cell phone,” said Sen. Franken. “I’ve introduced the Arbitration Fairness Act to ensure that workers and consumers have the right to choose arbitration over litigation, instead of being forced into it by corporations.”

"Consumers fighting for fundamental rights against giant corporations deserve their day in court," said Sen. Blumenthal. "This new law would protect countless consumers in Connecticut and around the country from powerful companies that take advantage of them. When individuals have legitimate claims against big corporate interests, they have the right to a level playing field. "

“Forced arbitration clauses undermine our indelible Constitutional right to take our disputes to Court,” said Rep. Johnson. “They benefit powerful business interests at the expense of American consumers and workers. These bills are designed to defend our rights and to re-empower consumers.”

In AT&T v. Concepcion, consumers brought a claim against AT&T for false advertising. However, because the value of their case was only $30, their case was consolidated into a class action. AT&T sought to block the lawsuit by pointing to the mandatory arbitration clause in the service contract but lower courts applying state law rightly invalidated the arbitration clause because it banned class actions entirely.

In its 5-4 decision, the Supreme Court overturned these lower court decisions which sought to protect consumers. The majority of the Court held that the Federal Arbitration Act (FAA) barred state courts from protecting consumers from these arbitration clauses. However, the FAA was originally passed to ensure that the courts enforced commercial arbitration agreements between two companies, not between companies and consumers. The Supreme Court’s expanded interpretation of the FAA allows companies to insulate themselves from liability when they defraud a large number of customers of a relatively small amount of money.

What the Arbitration Fairness Act Does:

  • Restores the original intent of the FAA by clarifying the scope of its application.
  • Amends the FAA by adding a new chapter invalidating agreements that require the arbitration of employment, consumer, or civil rights disputes made before the dispute arises.
  • Restores the rights of workers and consumers to seek justice in our courts.
  • Ensures transparency in civil litigation.
  • Protects the integrity of the Civil Rights Act, the Equal Pay Act, the Americans with Disabilities Act, and the Age Discrimination in Employment Act, among others.

A longtime advocate for consumers and workers in cases of forced arbitration, in 2009 Sen. Franken passed legislation with bipartisan support that restricts funding to defense contractors who commit employees to mandatory binding arbitration in the case of sexual assault and other civil rights violations. Rep. Johnson, a longtime champion of workers and consumer rights, first introduced the Arbitration Fairness Act in 2007.

At today’s press conference, Sens. Franken and Blumenthal and Rep. Johnson were joined by Deepak Gupta, an attorney with Public Citizen who argued on behalf of consumers in the AT&T v. Concepcion case before the Supreme Court, Hassan Zavareei, an attorney with Tycko & Zavareei LLP, and Nancy Zirkin, the Executive Vice President for Policy at the Leadership Conference on Civil and Human Rights.

To find out more about "Binding Mandatory Arbitration" and how some business use it to rip you off, click here: www.ArbitrationSucks.com.

Wednesday

the games Harley plays with their customers - it never quits

The very first blog we ever wrote was about Harley Davidson and the games they were playing with their customers back then. Well, here we go again.

Harley Davidson has a pretty good reputation with bikers. They've been around a long time and the quality is pretty good, but lately we've been seeing them and their dealers play the same game over and over.

You go and buy a bike and, of course, the dealer talks you into adding on a new "aftermarket" exhaust to give it that genuine throaty "Harley sound" that you expect from a real Harley bike.

Then a few months later it blows a head gasket, starts vibrating bad, throws a drive belt, the battery goes dead and the fuel mileage sucks. The dealer scratches their head and calls Harley and gets nowhere. You scratch your head and call Harley and get nowhere. Is it Lemon Law Time? You betcha.

So what's really going on here? Simple. The dealer wants to make an extra 800 or so off the deal so they talk you into the new set of pipes. Then, if anything goes wrong with the bike later, Harley says you altered the bike's original equipment so now there's no warranty coverage. Even though you know it has nothing to do with the pipes, Harley still tries to stick it to you. Don't put up with it.

Legally, if you add new parts to your bike and later the bike acts up - the only question is whether those parts are the cause of your problem. If so, then no warranty coverage. If not, then they owe you.

If the add-on parts have nothing to do with the problem with your motorcycle - then Harley is still on the hook. They are liable and they can not legally try to blame it on you. Of course, that won't stop them from trying.

Best thing to do is to not buy those add-on "aftermarket" parts in the first place, of course, but if you do, then just make sure that you first ask your dealer if putting those parts on your new bike is going to void the warranty. Then when Harley (or any other manufacturer) tries to tell you that you're stuck, you can turn around and stick it back to them.

That's only fair. If they build it wrong, then they should take care of you. And if the dealer lies to you, then they should step up to it and take care of you. Either way, if it's not your fault then don't let them run over you.