Arbitration Program In Which the Applicant Will Participate In
- Arbitration is Required!
- Don’t Get Fined!
- The Basics: Arbitration
- New Companies Get Arbitration ASAP!
- Consumer / Shipper Rights
- How Is Arbitration Beneficial?
- There Are Disadvantages Too
- Arbitration is a Requirement Worth Investing In
1. Arbitration is Required!
An arbitration program was developed with the notion of protecting both household goods movers as well as the consumers involved in interstate moves. This program is not a suggestion, it is a law and regulation all interstate household goods carriers are required to comply with in order to continue operating legally. The FMCSA also requires that household goods carriers offer their consumers the option of using arbitration.
2. Don’t Get Fined!
Arbitration is a requirement that is highly regulated and must be renewed on an annual basis. Failure to renew arbitration can lead to financial issues and you could be fined up to $10,000. Even worse, your license can be revoked and you could be stuck with a $25,000 fine at the minimum.
3. The Basics: Arbitration
Simply put, arbitration is special for of alternative for dispute resolutions, in which both parties enter into an agreement that they will handle the dispute outside of court by using arbitration. Typically a non-biased arbitrator is present and both sides present their case. Once the arbitrator has made a decision, it is final and no other dispute is possible.
4. New Companies Get Arbitration ASAP!
If you are a new company starting out, you will quickly find yourself needing to participate in an arbitration program. Not only is this for your license, but it’s also so you can receive your USDOT number as well. This must be done before you can continue with any further legal actions regarding your company.
5. Consumer / Shipper Rights
If you’re an individual shipper that is moving interstate, you have the option to participate in arbitration, although you may seek the court system for dispute resolution. Although you may or may not request arbitration, as a consumer it is your right and as a mover it is a USDOT requirement to provide consumers with arbitration. It is also the mover’s responsibility to provide a summary of the arbitration program before pursuing further binding signatures.
While arbitration is not mandatory for consumers, it is for licensed moving companies. Arbitration acts as an opportunity to dispute lost or damaged items or to dispute additional fees or costs. As a consumer, it may even be more convenient and efficient in saving you time and money, especially when compared to going to small claims court.
6. How Is Arbitration Beneficial?
As with any type of program, arbitration can be advantageous in many ways compared to litigation i.e. going to small claims court. Below are a few beneficial aspects in regards to using arbitration:
-the process is generally quick, convenient, and the cost is much lower than going to court
-both parties have some control about who is selected as their arbitrator
-arbitrators can make decisions over some disputes a judicial system can’t
-the process is less formal, making it less of a hassle
-everything is kept private, even from public record
7. There Are Disadvantages Too
Most who enter in arbitration would agree that the pros outweigh the cons in regards to arbitration programs. However, some believe arbitration isn’t as beneficial as many people in the moving and storage industry do.
Some disadvantages may be:
-lack of formality
-lack of formality in regards to evidence
-some people believe arbitrators work in favor of the moving company
-suspicion of a biased arbitrator
-people find the lack of any public record is a disadvantage as well
8. Arbitration is a Requirement Worth Investing In
Ultimately, if you’re an interstate household goods carrier, you are required by the USDOT to be part of an arbitration program for an annual fee, which needs to be renewed every year. By spending such a small amount, you’re protecting yourself from fines of up to $25,000 or having your license revoked. Not only will this save you money, it can save you more money and time in the future as well. It is critical to be compliant with the USDOT.
For consumers, it is important to be informed about your rights, one of which is a right to arbitration and a summary of the program. Understanding this information is significant to the consumer.
Avoiding fines, less expensive dispute resolution, and less formal legal process all seems beneficial to both the consumer and the moving company. In the end, one last crucial piece for movers is to make sure to find a professional and legal arbitration program. Arbitration is highly regulated in our current moving and storage industry if you’re looking for one, it’s advised to participate in one as soon as possible.