Uniform
Rules for Binding Arbitration
of the Better Business Bureau of the Southland
(Revised June 2004)
Introduction
The rules that follow are those that govern
arbitration proceedings conducted by the Better
Business Bureau of the Southland (BBB). Before
stating those rules, though, it may be helpful to
explain briefly what the Better Business Bureau is
and what arbitration is and to give you an
overview of it.
The Better Business Bureau
Your local Better Business Bureau® is a nonprofit
organization supported by local businesses. It is
dedicated to promoting and fostering the highest
ethical relationship between businesses and the
public through consumer and business education and
voluntary self-regulation.
The BBB assists in the resolution of disputes
between a business and its customers. BBBs have a
national reputation for fairness because they
remain neutral in a dispute. They do not take
sides, but work to get the problem settled as
quickly as possible.
Arbitration by the Better Business Bureau
If you have a marketplace dispute, the BBB can offer you several ways to resolve it.
Arbitration is one option.
What is arbitration?
Arbitration is an informal process in which two or more parties present their views
of a dispute to a neutral third party, an arbitrator, who will decide how to resolve the
dispute based upon what he/she feels is fair. Many businesses enter into agreements with
their customers to arbitrate disputes that may arise from their business transactions. Other
businesses ask the BBB to provide arbitration on a case-by-case basis. That is, although they
and their customer have not previously agreed to arbitration, if all parties are willing to
arbitrate at the time the dispute arises, they voluntarily submit it to the BBB for arbitration.
You should be aware that each party gives up his/her right to sue the other party in court on
any claim that has been resolved through arbitration. (If the party against whom the arbitration
award is made fails to perform according to the arbitrator's decision, though, you may obtain a
court judgment to enforce the award.)
Initiating arbitration
If you and the other party agreed in advance to
arbitrate, the BBB will prepare a Demand for
Arbitration for the party who seeks arbitration
and send it to the other party.
If you did not agree in advance to arbitrate, all
parties must agree to submit your dispute to BBB
arbitration in order for us to arbitrate. If all
agree to arbitration, the BBB will ask you to sign
an Agreement to Arbitrate.
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The Agreement to Arbitrate
The Agreement to Arbitrate, which the BBB will
prepare for you, will outline the issues and the
types of awards that the arbitrator may consider
in your case.
Who is the arbitrator?
BBB arbitrators are volunteers from your
community who have been approved as arbitrators by
a local Better Business Bureau. They are
professionally trained and listen to both sides
and weigh the evidence before making their
decision.
The arbitration hearing
The BBB will schedule an arbitration hearing
after consulting with the parties and the
arbitrator. The sole purpose of the hearing is to
allow the arbitrator to gather and sort the facts
in order to make a fair decision, and you will
want to convince the arbitrator that your position
is right. While most cases require only a single
hearing, additional hearings may be scheduled if
the arbitrator deems it necessary.
At the hearing, you will each have an opportunity
to state the facts as you see them. You will each
also have the opportunity to ask questions of the
other party. The arbitrator may also ask questions
to clear up uncertain areas and to gain a fuller
understanding of the dispute.
After each side has presented its case and the
questioning is completed, you should be prepared
to summarize your position. You will want to
address any questions that have not been answered
and to tell the arbitrator exactly what you think
the decision should be and why.
Keep in mind that a cooperative approach works
best. You are there because a disagreement exists,
but keep your statements about that disagreement
factual and within the bounds of normal courtesy
and conventional language. Remember, too, that
arbitrators may not have technical expertise, so
your presentation may be more productive if you
speak simply and use layman's terms in presenting
your case.
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How to prepare for
arbitration
Before coming to your arbitration hearing, you
should prepare an outline of your argument to help
you in your presentation. You may want to use the
checklist that follows to assist you in your
preparation. You should also prepare a list of
questions you want to ask the other party.
Arbitration checklist
In preparing your case, use whichever items
below are appropriate to your case. Some may not
apply, and you may ignore them:
- Organize your materials in the order you
wish to present them. This will help you present
your case clearly and logically.
- Clearly state what the problem is and why you
think the other party is responsible.
- List in chronological order the actions you took
to resolve the dispute, including:
- individuals with whom you spoke;
- when you spoke with them;
- what they told you and/or what actions they took;
- other business/service persons involved:
- Who they were
- When they became involved
- How they became involved
- What they told you and/or what actions they took
- Collect and bring to the hearing all
available written information relating to your
dispute, which might include:
-
Evidence of the agreement that is the basis of
this dispute, such as a contract, purchase
order, finance/lease agreement, or
correspondence that outlines your intentions.
- Any relevant warranty.
- If applicable, repair, service and maintenance
records and proof of payment for these services.
- Correspondence between you and the other party,
if relevant.
- Any other documents that may support your case,
such as newspaper/magazine advertisements or
articles, photographs, court decisions and legal
documents, consumer group information, brochures
and technical information, etc.
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Bring original documents, if
possible, and bring copies for the arbitrator and
all other parties.
Bring witnesses who may have information about
your complaint, such as mechanics or sales
personnel, to testify in your behalf. Or ask them
to submit written statements, based upon their
knowledge of the transaction.
You are responsible for your witnesses' submission
of information. If you want them to testify in
person, give them advance notice of the time and
place of the hearing and keep them informed of any
changes.
The arbitrator will accept all evidence presented
at the hearing that he/she deems relevant. If
allowed, he/she will determine the weight it is to
be given in deciding the case. We recommend that
you be over-prepared rather than under-prepared.
Evidence will not be accepted after the hearing if
it was possible to present that evidence at the
hearing or if the arbitrator has already rendered
a decision.
To summarize:
1. Provide written statements. Organize your case.
2. Back up your position with evidence.
3. A clear, concise and well-organized
presentation supported by relevant facts and good
documentation will help the arbitrator fulfill
his/her responsibility.
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UNIFORM
RULES FOR BINDING ARBITRATION
Any dispute arbitrated by the Better Business
Bureau will be arbitrated under the Uniform Rules
for Binding Arbitration of the Better Business
Bureau of the Southland in effect at the time the
arbitration is initiated.
1. DEFINITIONS
The following list defines key words as they
are used in these Rules.
a. "Arbitration" is a process in which two or more
persons agree to let an impartial person or panel
decide their dispute.
b. "Arbitrator" refers to the individual or panel
selected to conduct your arbitration and make a
decision in your dispute.
c. "BBB" refers to the Better Business Bureau.
d. "Days" means calendar days.
e. "Decision" is the written document, signed by
the arbitrator, that sets forth the arbitrator's
decision. It may also be referred to as the
"award."
f. "Parties" includes the consumer, the business,
and any other person or company that has agreed to
arbitrate under these Rules. In arbitration
proceedings involving more than two parties, the
singular, "party," refers to all parties where
appropriate.
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2. SCOPE OF BBB ARBITRATION
Disputes involving consumer products and/or
services may be arbitrated under these Rules.
Unless they directly relate to the contract that
is the basis of this dispute, the following claims
will be considered for arbitration only if all
parties agree in writing that the arbitrator may
consider them:
- Claims based on product liability;
- Claims for personal injuries;
- Claims that have been resolved by a previous court
action, arbitration, or written agreement between
the parties.
The decision as to whether your dispute or any
part of it can be arbitrated rests solely with the
BBB, as explained further in Rule 31.
3. REMEDIES
The remedies that may be awarded in an
arbitration proceeding include but are not limited
to (a) full or partial refund of the cost of the
product and/or service involved in the
transaction, including sales tax and other direct
incidental costs associated with the sale of the
product or service; (b) repairs or reimbursement
for the cost of repairs to a defective product;
(c) the amount of any actual out-of-pocket loss or
property damage caused by provision of the
service. Remedies available through BBB
arbitration are limited to those available in a
court of law.
4. AGREEMENT TO ARBITRATE
The BBB will prepare an Agreement to Arbitrate
that briefly describes the nature of the dispute
and the decision sought as they are viewed by you
and any other party. This Agreement to Arbitrate
is intended to be a general outline of the
dispute, not an argument of either side's case.
The BBB will submit the Agreement to Arbitrate to
each party for signature prior to the hearing. You
must contact the BBB at once if you disagree with
the general description of your case and/or the
decision you are seeking. (You should not contact
the BBB if you think the description of the other
party's case is in error; that is an issue for the
arbitrator to decide). Otherwise, each party is to
sign the Agreement to Arbitrate and return it to
the BBB within five days of receiving it.
If the parties had agreed in advance to arbitrate,
the failure of any party to sign the Agreement to
Arbitrate and return it to the BBB within five
days of receiving it will be considered an
acceptance of that agreement, and its terms will
be binding upon the parties.
If the parties did not agree in advance to
arbitrate and one party does not return the signed
agreement within this time, the BBB will not
arbitrate the dispute.
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5. SELECTING YOUR
ARBITRATOR
a. General selection procedure
The BBB maintains a pool of individuals who have
volunteered to serve as arbitrators. These
arbitrators may or may not have expertise in the
matter to be arbitrated.
The BBB will provide the parties with the names of
two or more arbitrators chosen from the volunteer
pool, together with brief biographies of each.
Each party shall reject the name of an arbitrator
if a financial, competitive, professional, family
or social relationship exists between any party
and the arbitrator. You may then assign priorities
to those names remaining (1, 2, etc.).
If the selection is done by mail, you have five
days after receiving the list of arbitrators to
mail the list back to the BBB. If you do not mail
the list to the BBB within these five days, the
BBB will assume all names are satisfactory to you.
Every effort will be made to select the parties'
preferred arbitrator. Should a selected arbitrator
become unavailable or unable to serve for any
reason, the BBB reserves the right to select a
substitute arbitrator using these procedures.
At the BBB's option, or when required by law or
contractual obligation, a panel of three or more
arbitrators may be selected for a case. Any action
taken or decision made by a panel shall be by
majority vote.
b. Alternate procedure
The BBB may use variations of this selection
process; however, any alternative procedure shall
be designed to avoid conflict of interest and will
provide the parties with a neutral arbitrator to
hear their case.
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6. IMPARTIALITY OF THE
ARBITRATOR
BBB arbitrators sign an oath pledging to make
an impartial decision in your dispute. If an
arbitrator believes that he/she cannot make an
impartial decision, he/she shall refuse to serve.
Additionally, arbitrators are required under
California law to disclose certain relationships
or affiliations, such as financial, professional,
family or personal, and certain past affiliations
with parties or attorneys, such as those arising
from past or present employment or from previous
arbitration cases, to the parties in arbitration
cases. Thus, if you have any doubt of the
arbitrator's impartiality in your case, you may
choose another arbitrator.
7. COMMUNICATING WITH THE
ARBITRATOR
Neither you nor anyone representing you shall
communicate in any way with the arbitrator about
your dispute except at an inspection or hearing
for which the other party has received notice but
does not appear or when all other parties are
present or have given their written permission.
All other communication with the arbitrator must
be sent through the BBB.
Violation of this rule may result in
discontinuance of your case.
8. HEARING NOTICE
The BBB will set a date, time (during normal
business hours) and place for your arbitration
hearing. The hearing will be set with due regard
for the schedule of the parties and the
arbitrator. Notice of the date, time and place of
the hearing will be sent to you at least 10 days
in advance of the hearing.
To the extent practical, the BBB will arrange for
the hearing to be held at a location convenient to
the parties and witnesses.
If you object to the date, time or place stated in
your notice, contact the BBB immediately. However,
the BBB reserves the right to make the final
decision as to the date, time and place for the
arbitration hearing.
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9. TYPES OF HEARINGS
Although most arbitrations involve in-person
hearings, the BBB, at your request or at its
option, may arrange to have your statement and
evidence presented by telephone or in writing.
If you present your case by telephone, you must
submit to the BBB at least seven days before your
hearing any written documents on which you will
rely. The BBB will pro-vide these documents to the
other party before the hearing.
10. OUTSIDE ATTENDANCE AT
HEARINGS
Besides its staff, the BBB may permit
volunteers from its pool of arbitrators or
government representatives to attend arbitration
hearings.
For any other observer, including media
representatives, to attend a hearing, the BBB will
first determine that reasonable accommodations
exist and that neither the parties nor the
arbitrator objects to the presence of the
observer. The BBB will make the final decision,
and any observer permitted shall be subject to the
BBB's directions regarding proper conduct.
Unless approved by the BBB, all parties and the
arbitrator, no observer may bring cameras, lights,
recording devices, or any similar equipment into
the hearing. Observers may take notes of the
proceeding.
11. YOUR REPRESENTATIVE
You may present your own case, or you may have
someone represent you. If your representative is a
lawyer, you must give the lawyer's name and
address to the BBB at least eight days before the
hearing. The BBB will notify the other parties to
give them an opportunity to obtain lawyers if they
wish. Your failure to give the BBB the required
advance notice of legal representation may result
in a rescheduling of your hearing.
You are responsible for any fees charged by your
representative.
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12. INSPECTION BY THE
ARBITRATOR
You or the arbitrator may request an inspection
of the product or service involved in your
dispute. If possible, the inspection will be
performed as part of the hearing; otherwise, the
inspection will be scheduled for a later date and
all parties will receive at least eight days
notice unless such notice is waived by all
parties.
13. OATH OF PARTICIPANTS
You and your witnesses shall be placed under
oath at the hearing.
14. INTERPRETERS
If you need an interpreter for your arbitration
and cannot provide your own, you may ask the BBB
to attempt to find a volunteer interpreter.
15. TECHNICAL EXPERTS
You may employ a technical expert, if you wish,
to inspect the product or service in dispute. The
expert's findings may be presented in writing or
in person. In any case, you will have an
opportunity to evaluate and comment on the
qualifications and findings of the expert.
16. YOUR ABSENCE FROM THE
HEARING
If you do not attend a hearing after receiving
proper notice from the BBB, the arbitrator may
hold the hearing without you, reschedule it to a
time that will accommodate your schedule, or ask
you to submit your case in writing. In deciding
whether or not to go ahead with the hearing, the
arbitrator may take into account, along with other
relevant considerations, any unforeseen
circumstances or emergencies that prevented you
from attending the hearing as scheduled and from
giving the BBB advance notice that you would not
attend.
If you then fail to present your case in the time
and manner set by the arbitrator, the arbitrator
may make his/her decision without your
presentation.
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17. CONDUCT OF THE HEARING
You will have an opportunity to make a personal
presentation of your case, and you may present
witnesses and evidence in support of your case.
You may also question the other parties and their
witnesses. After everyone has presented his/her
case, each party will be given the opportunity to
make a closing statement.
If the arbitrator determines that additional
information is necessary in order to make a fair
decision, he/she may direct that this additional
evidence be submitted at a subsequent hearing or
in any manner deemed appropriate by the
arbitrator. If the arbitrator directs that written
evidence be submitted after the initial hearing,
the evidence shall be sent to the BBB within the
time frame specified by the arbitrator. The BBB
will send a copy to the other party and solicit a
response. Both the written evidence and any
response shall be submitted by the BBB to the
arbitrator.
18. ADMISSION OF EVIDENCE
AT THE HEARING
You may present your case without being
restricted by courtroom rules of evidence.
However, you should be sure your evidence is
relevant to your case. The arbitrator may limit
your presentation if it is repetitious or
irrelevant.
19. ABSENTEE STATEMENTS
If you have a witness who cannot attend the
hearing, you may present that person's written
statement to the arbitrator. You must make a copy
for the other party to read and use to respond.
Before the arbitrator makes a decision, you may
ask the arbitrator to allow you a reasonable
number of days to respond to a written statement
or document presented by the other party at the
hearing. The arbitrator may grant your request at
his/her discretion.
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20. SUBPOENAS
You may send the BBB a request that the
arbitrator subpoena witnesses or evidence relevant
to your case. You should state in your request why
the witnesses or evidence are relevant and why you
believe a subpoena is necessary. If the arbitrator
agrees with your request, a subpoena will be sent
according to State law.
The party requesting a subpoena shall be
responsible for any expenses involved in the
issuance of the subpoena and for enforcement of
the subpoena if necessary.
After the arbitrator has made a decision in your
case, no more arguments or evidence may be
presented, even if newly discovered or not
available at the time of the hearing.
21. CLOSING THE HEARING
If you have been asked or allowed by the
arbitrator to furnish additional evidence in
support of your case, the arbitrator will set a
deadline by which you must send the evidence to
the BBB. The BBB will give the other party an
opportunity to respond to your evidence and then
will send all materials to the arbitrator.
The arbitrator will close the hearing when he/she
determines that the parties have had sufficient
opportunity to present all relevant evidence.
22. ADMISSION OF NEWLY
DISCOVERED EVIDENCE AFTER INITIAL HEARING
Before a decision is made, an arbitrator may
schedule additional hearings or otherwise request
new or additional evidence to get all possible
facts relating to your dispute.
Before a decision is made, you may send the BBB
new information that was impossible to present at
your original hearing and request that it be
considered. The BBB will send it to the other
parties for their response and then forward the
information and any response to the arbitrator.
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