|
Article:
John Q. Public, Have We Got a Deal for You: Special Interest Legislation
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
At the
same time the public appears to be exasperated at the
prevalence of corporate thievery, special interest
groups are still having their way with our legislators.
An example of special legislation gone awry in the
federal context is the Motor Vehicle Franchise Contract
Arbitration Fairness Act (the “Arbitration Fairness
Act”) signed into law on November 2, 2002. As most
people know, predispute arbitration agreements are
pervasive in our society. Corporations seek to use them
for many reasons including the ability to limit their
exposure or shield them from punitive damages and class
actions, and to limit discovery of other bad practices.
Many commentators believe arbitration agreements are a
way to prevent jurors from holding corporations
responsible for their actions and have questioned the
use of arbitration clauses where there is a disparity in
bargaining power between the car dealer and the consumer
and where the clauses have been included in contract
documents before a dispute arises.
Car
dealers are one group intimately familiar with the use
of these agreements and they often include these clauses
in any agreement for the sale or lease of a car or
truck. As between the car dealer and the consumer, it is
almost always the car dealer who is more sophisticated
and who has superior bargaining power. However, car
dealers deal with one party with greater bargaining
power than themselves: the manufacturer from whom they
purchase cars and trucks. Car dealers did not like
manufacturers using arbitration clauses against them so
they took action and obtained passage of the Arbitration
Fairness Act.
The
Arbitration Fairness Act was designed to protect car
dealers by prohibiting manufacturers from including
predispute arbitration clauses in motor vehicle
franchise contracts. Under the Federal Arbitration Act,
it is generally illegal for states to specifically
prohibit arbitration agreements for transactions
involving interstate commerce and the courts have
determined that almost any purchase today falls within
the interstate commerce. The narrow exception granted to
car dealers by Congress and President Bush was
unprecedented and reflects the legislative clout of car
dealers.
Not to be
outdone, two Republican Legislators in the Florida
House, Representative Ross from Lakeland, and Senator
Bennett from Bradenton, have recently introduced a bill
in Florida that would provide car dealers special
protection from lawsuits. Believe it or not, House Bill
1181 would prohibit suits against car dealers under the
Deceptive and Unfair Trade Practices Act unless the car
dealers were given at least 30 days notice of the suit
and would protect car dealers from having to pay a
consumer’s attorney’s fees in many instances; hence,
consumers would have an even harder time finding
consumer protection attorneys willing to take their case
on a contingency fee basis. The Act would also allow car
dealers to request a summary procedure which would limit
discovery into whether the car dealer’s conduct was
widespread.
The goal
of the law appears to be an effort to limit enforcement
of consumer laws to the overworked and underfunded
Attorney General's office and the Department of Motor
Vehicles. While the employees of these agencies have
good intentions, they cannot police the car dealers
themselves. As an example, when is the last time the
Department of Motor Vehicles suspended or revoked a
dealer's license for fraud before the dealer had
already stopped doing business. I have three clients,
who like many others, would like to know. The $25,000
dealer surety bond paid just cents on the dollar for
their claims against Terry Motors of Lake County. We
should have learned from Enron that public regulation is
not enough. Car dealers are attempting to once again
take away the keys to the courthouse. The bill has not
yet been signed into law but this is another example of
special interest legislation gone awry. Sorry, John Q.
Public, you will have to move to the back of the line
unless, of course, you are on the “A list” of campaign
contributors. As a person who usually votes Republican,
I am truly embarrassed.
Disclaimer: The above Article
is intended to give you, the consumer, insight into various legal topics. This
information is not intended as legal advice, but rather helpful topical
information.
 If
you require professional legal services regarding
Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law issues, be proactive in
protecting your legal
rights by seeking the legal advice of
an experienced
Jacksonville criminal defense attorney
& lawyer. Contact
The Law Offices of
Steven M. Fahlgren, P.A.,
by calling
904.845.2255.
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
|
|
