Consumer Reaction Toward Arbitration as a Remedial Alternative to the Courts

• NCJ Number: 94855
• Journal: Journal of Consumer Affairs Volume: 17 Issue: 1 Dated: (Summer 1983) Pages: 172-189
• Author(s): R J Adams
• Date Published: 1983
• Length: 18 pages
• Publication Format: Article
• Language: English
• Country: United States of America

Annotation

A 1980 mail survey of 361 recent purchasers of new cars in a large southeastern metropolitan area where arbitration has not been used suggests that consumer reaction and acceptance are likely to be favorable, but not without problems.

Abstract

Only 12.4 percent of the sample indicated any knowledge of the application of arbitration to consumer-seller disputes. An even smaller number were able to identify or describe a consumer arbitration program by name or sponsor or cite a specific instance where arbitration had been employed to resolve a dispute involving final consumers. Over 50 percent of the respondents rated arbitration either 'very appropriate' or 'moderately appropriate' for settling each of 11 hypothetical complaints. Respondents were asked to indicate the degree of importance they would attach to each of five factors or attributes commonly associated with consumer arbitration; rapid disposition of cases, convenience in scheduling, low cost, informality, and inherent fairness to the parties. Over 75 percent of the respondents rated each factor as being either 'very important' or 'moderately important' in their decision to submit a dispute to arbitration should the occasion arise. Males, older subjects, more active subjects, and higher income subjects tended to be more knowledgeable about arbitration. Survey results suggest that a strong case can be made for a more accessible, flexible, and inherently understandable alternative to the courts and that consumer arbitration may be that alternative. Four tables and 24 references are provided.