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What is mandatory binding arbitration?

Answer:

By signing a contract with a mandatory binding arbitration provision, you agree to resolve any disputes about the contract before an arbitrator who decides the dispute instead of a court. You also may agree to waive other rights, such as your ability to appeal a decision or to join a class action lawsuit.

Many auto finance contracts contain mandatory binding arbitration clauses. Some dealers may also ask you to sign separate binding arbitration agreements. 

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