NCJ Number
92434
Date Published
1983
Length
11 pages
Annotation
This article describes the steps taken in determining the structure for a third-party mechanism to resolve disputes between consumers and interstate movers. The current operation of the program and its benefit to participating companies are discussed.
Abstract
Because of various reservations held by moving industry people regarding a national dispute settlement program, in early 1980, the American Movers Conference established a Task Force on Arbitration to consider some of the issues being raised. The task force examined arbitration procedures administered by a number of organizations, including the American Arbitration Association, the Council of Better Business Bureaus, and the Transportation Arbitration Board. After assessing the results of a limited test program administered through the Council of Better Business Bureaus, it was decided that the American Arbitration Association offered a more feasible program for the industry. By the time the program was ready to begin in February 1982, about 40 carriers servicing more than 90 percent of interstate movers had signed to participate. Currently, the program is limited to unresolved disputes associated with loss and damage claims. Although parties in a dispute are not bound to use the arbitration procedures, once both parties commit an unresolved dispute to the American Arbitration Association, the decision made is legally binding and can be enforced in any court having jurisdiction. There is a limited right to appeal. In selling the program to businesses, it is maintained that the program serves as a good marketing tool, keeps customers satified and loyal, provides a warning signal of problems requiring attention, improves government relations, and precludes costly litigation and possibly government regulation.