What Does An Arbitration Program Consist Of?

The contents of an arbitration program must include these 11 requirements:

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1) The arbitration program must not allow the movers to have any advantage over the shipper because of the company’s physical location.

2) Before performing a move, the moving company must notify the shipper that neutral arbitration is available to them. This takes effect when the claims process does not resolve an issue. Movers must provide the following 3 items to the shipper regarding arbitration:

    • A summary or brochure which provides details of the procedure of arbitration.
    • Provides a list of all the expenses associated with the arbitration.
    • An explanation of legal consequences related to their choice to proceed with arbitration.

3) Once arbitration gets approval, it requires that the company provides all necessary documents.

4) The arbitrator must be a third party and be able to resolve any disputes in a prompt and fair manner.

5) The arbitrator does have the right to split an amount of the payment due for arbitration. The shipper can not pay an amount greater than half the cost of arbitration.

6) A moving company cannot force, require or make a person agree to the use of an arbitration program. Use the company’s claim procedure first.

7) If the claim is for an amount less than $10,000 or for an amount less than $10,000, the moving company must participate in the binding arbitration process.

8) In the event that the claim involves a value greater than $10,000 and the moving company and person moving agrees to use a moving arbitration program, the moving company is bound.

9) If both parties agree, the arbitration may offer to provide an oral hearing of the disputed claim. This is in lieu of a paper hearing.

10) The arbitration must make a determination in 60 days or less from the date of the written notice. The arbitrator’s determination may comprise of solutions that they feel are fitting given the circumstances of the individual case.

11) The arbitrator may choose to extend the time frame to more than 60 days if supporting documentation and/or responses are not being sent. The moving company must to provide a clear and concise explanation of arbitration set by the FMCSA Registration.

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