How does an Arbitration Program Work?

Arbitration program is a procedure that companies utilize, to settle disputes with their consumers, legally. There are two types of this program which ever moving company must know about: 

  •         The first type of Arbitration program dot, refers to entitlements for damage and loss of articles/products during their shipment.
  •         The second type of this program refers to disputes regarding extra charges. These charges are usually applied by movers, to the shippers.

There are several reasons why a dispute might arise between a shipper and the moving organization. The most common reasons for a dispute are damaged goods, missing goods or excessive charges that weren’t discussed earlier. However, one thing to know about this program is that it does not involve the court. It is a non-bias program and is handled easily.

There are various options available for a shipper and consumer, to resolve a dispute with the moving company. The best way to resolve the issue is to hold a direct discussion meeting with the customer service department of the moving company that you have an issue with. In an arbitration program hearing, either a single arbiter is available or a group of 3 arbiters are functional. The disputing parties sit with the arbiter and deeply discuss the issue to come to a rational conclusion. Rather than heading out to the court, the arbitration process uses a completely different concept to work on resolving the dilemma.

Who must have an arbitration program?

All the moving companies that transport shipments from one state to another, must have an arbitration program. When the third party makes a claim against the moving company, the arbitrator is responsible for reviewing the claim. The program is used to solve any disputes related to damage and loss claims or the charges that are billed, in addition to the ones that were discussed before.

What does the program consist of?

Now that you know that all moving companies, who transport from town to town or out of cities, must have an arbitration program; it is important to understand what it consists of. The program is composed of 11 elements. Before you get a program, understand the following 11 elements:

  1. The program should never give advantage to the mover.
  2. It is crucial that the moving company must inform the shipper that they have an arbitration program. Let them know formally and inform them about the following 3 elements before signing an agreement with them: 
  •         Summary of the arbitration procedure
  •         The uses of arbitration
  •         Applicable costs
  1. If a claim is made, the moving company must provide the required documents, needed by the shipper, to complete the arbitration requirements. If the documents are provided late, the timeline of the abritary is also exceeded. 
  2. The arbitrator must be authorized and should be fair and prompt in resolving issues.
  3. The arbitrator is allowed to determine the percentage of the payment for all the parties involved in the claim.
  4. The moving company is not allowed to force a shipper to use the program, before any dispute.
  5. If the shipper requests to go to an arbitrator, the moving company is bound for $10,000 or less of claims.
  6. If the claim is more than $10,000, the moving company becomes bound to the arbitration.
  7. If the moving company and the shipper come to an agreement and resolve the issue on mutual terms, the arbitrator might orally represent the dispute and close it.
  8. The arbitrator has to resolve the issue within 60 days, after the claim is made.
  9. If the shipper or the mover company fails to submit the required documents; the arbitrator can exceed the 60 day time limit. The delays done on the parties ends’ is not the arbitrator’s fault.

Advantages of Arbitration Program:

Ditching the court and opting for arbitration has potential benefits, some of which we have summed up below. It is a flexible and time saving option! 

  • Arbitration programs save you a lot of time. It helps in resolving a dispute in less time and in a much better, hassle-free style. A limited time line is set for the arbitration which makes it more appropriate for resolution of issues. 
  • This is a flexible program. Court hearing and laws are very strict and do not provide a tiny bit of flexibility to any of the parties. 
  • Arbitration is usually less expensive than court hearings. As there is a fixed timeline for the program, everything has to be done and managed within this time. Thus, the costs are usually minimal. However, it is not a cheap service at al. Remember, that it is affordable than the court but not super budget friendly.
  • The professionalism in the arbitration program is great. The arbitrators are extremely professional at their task and are well aware of the procedure. They make the program easier to follow and understand and the process is not stressful (usually). 
  • Arbitration is also set on some basic laws and evidence but unlike the court, where you are not permitted a bunch of things; in an arbitrary, all the evidences are judged deeply. The outcome is based on equality and both the parties are required to submit some documentations, which decide who wins the dispute. It is abided by laws but it usually stress free and more flexible. 

CONCLUSION

Arbitration programs have evolved over the passage of time. The regulations keep changing. Thus, it is always best to review the program before you get it. It is necessary for all moving companies to get an arbitration program as there will be times when you will end up in a dispute with the shipper or consumer. An arbitrator is extremely helpful in resolving these disputes in a legal manner, without the hassle of courts involved. With a prompt and rational arbitrator, you can settle any dispute, within a month or two.