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Tesla disputes and class action suits vs forced arbitration

Discussion in 'Tesla' started by fuzzy1, Dec 23, 2022.

  1. fuzzy1

    fuzzy1 Senior Member

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    While numerous multi-customer disputes with most car makers can be litigated through class action lawsuits, Tesla's direct sales model allows it to include a contract clause that forces arbitration instead. And confidentiality can help keep a lot of disputes out of the news:

    Seattle Times: Tesla’s direct sales model helps it thwart customer lawsuits
    (also at: Tesla’s Direct Sales Model Helps It Thwart Customer Lawsuits - The New York Times)

    Apparently there is a way out, for customers who notice soon enough:

    "Tesla buyers can opt out of arbitration, and preserve their right to a trial, by sending a letter to the company within a month of buying a car. But few are aware of or exercise that option, plaintiff’s lawyers said."

    Do many Tesla buyers in this forum, exercise this opt-out?
     
    #1 fuzzy1, Dec 23, 2022
  2. bwilson4web

    bwilson4web BMW i3 and Model 3

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    I wasn't aware of it but probably would not have exercised it. The lawyer contingency fee bothers me.

    Bob Wilson
     
    #2 bwilson4web, Dec 23, 2022
  3. hill

    hill High Fiber Member

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    Putting on my lawyer hat, easy enough to get around this. You have another buy & register the car if we're presuming you think it may be unreliable. Then, you pay the straw man & purchase it from hin. No signatures necessary from 2nd owner - and you still have virtually the whole new warranty!

    .
     
    #3 hill, Dec 30, 2022
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