During July, we ordered a 2011 Prius 4. We negotiated the price, placed a $500 deposit on our Prius, and signed a ‘Customer Order’ form. Today, we received a call from our dealer in Alcoa TN that our car had arrived. This evening we went to complete the loan paperwork at the dealership. Our loan was approved and we were ready to sign the final papers. Then the finance manager placed in front of us an Arbitration Agreement form. We declined to sign the form. We stated if a problem arose in the future we were consider arbitration. Yet, we were not willing to sign an Arbitration Agreement at this point. The finance manager informed us the dealership would not sell us the car unless we signed the Arbitration Agreement. Has anyone else encountered this situation?
Many jurisdictions have a time frame (usually a few days) where you can give written notice that you revoke your agreement to arbitrate. Some courts find that arbitration agreements over reach. Whether it's a car, or your MD you go to when you need a boil lanced ... if most all the MD's and most all the car dealerships and most all the roofing contractors, etc require you to include contracting away your right to litigate in order to get any service or product, then there's really a lack of a meaningful choice. Check with your local law office. Many firms will give you 1hr free consultation. They can tell you if your area permits you to sign then revoke. That's what I'd do. Or, I'd go to a better dealership. If your dealership feels they've been burned in court (and that may be the reason they want to arbitrate now) too often, you ought to ask yourself, "why would so many of their customers feel they need to take them to court?"
Thanks to everyone for the replies. I am unsure how we will move forward. We were very excited about owning a Prius. Yet, this situation has stopped us in our tracks!
I frankly have never heard of such a thing. But, I am in CA and you're way out there in Tennessee. Perhaps it's a state thing.
:welcome: Ask other "local" Toyota dealers if they require such an agreement. If so, call Jim Barkley Toyota in Asheville NC, just a little east of you, (New Toyotas Asheville NC Area Jim Barkley Toyota Cars Trucks and SUVs) to affirm they don't require such a doc (didn't when I purchased my Prius 2 yrs ago.) They are a posted price fair dealer. The car is a great all around vehicle that promise and delivers very high mpg with plenty of space and minimal maintenance. Don't let a dealer's defensive measures prevent you from purchasing your baby. Your deposit was not on the table when the forced arbitration was presented. They should refund it without hesitation...perhaps even wave the requirement if you're seriously walking out the door. Good luck !
After a bit of searching, this is apparently a relatively common method used by car dealers and other companies to limit liability and it pays to read the contract. However, the Tennessee legal system, seemingly, will rule unenforceable any one-sided arbitration agreements. http://www.selegal.org/Arbitration in Tennessee.pdf The document above refers to a case where an Arbitration agreement removed other legal recourse from the buyer but allowed the dealer access to the courts.
I would like to say a sincere ‘thank you’ to everyone for their input. Unfortunately, it does not appear we will be Prius owners – very sad day! As a mentioned in my first post, we ordered a Prius IV. We have a signed Customer Order form (signed by the dealership) and paid a deposit. The car was delivered to the dealership. While signing the final papers, the business manager placed an Arbitration Agreement in front of us. We declined to sign, and we were told the dealership would not sell us the car unless we signed the agreement. After many attempts to resolve the issue, the dealership refuses to sell us the car unless we sign this agreement. We are a 2 car family, but have been juggling our schedules as a 1 car family while we waited for our Prius to arrive. Unfortunately, we cannot start over again with another dealership and wait another 6-8 weeks for our car to arrive. Just call us “disappointedâ€!
very sorry to hear that. dealers can be very strange. maybe next time around? i hope you take another look, by then, mpg's should be 75 to 80! all the best!
Have you tried searching other dealer's inventory in your area on the internet? I was checking my local dealer today and they are showing 5 ready for immediately delivery. This is the first time that I have seen immediate inventory on their site since the Japan disasters. I would hate to see you miss a chance at getting your Prius.