arbitration agreement in Canada and opting-out

[user20]

When I asked about opting-out, a Tesla staff stated that there's no arbitration process in Canada and that there is no need to opt-out, but I didn't see Canada being mentioned in that section. Is it true that there is no arbitration in Canada?

 

[hingisfan]

What are you talking about?

 

[6spdcoupe]

What's the background story or introduction for this?

 

[user20]

In the Motor Vehicle Purchase Agreement there is a section called "Agreement to Arbitrate" which says that unless you opt out, any disputes with Tesla will not be decided by a judge or jury but by the AAA. It looks like it's related to US but the section was found in the Canadian MVPA form at delivery. Maybe Tesla Canada is simply re-using the American form and it does not apply, but I don't know that for sure.

Some resources:
Tesla Arbitration Procedure
Tesla’s Arbitration Agreement Can Hurt Your Lemon Law Case - Cline APC

 

[ehacke]

I'd be interested in this as well

 

[TheWulf]

You should read your purchase agreement to be sure. Mine definitely had it in there, and I have opted out.

 

[user20]

You should read your purchase agreement to be sure. Mine definitely had it in there, and I have opted out.

I think everyone's purchase agreement had that section. The question is whether it applies in Canada. If it does, that'd mean the Tesla delivery staff was either misinformed or being misleading or lying to a Canadian customer.

The agreement could mean that Tesla can let the American Arbitration Association handle Canadian disputes. Unless we have information to the contrary, the safer route appears to be to opting out anyway.

 

[myholdout]

It also states that Tesla will cover the costs to pay the American Arbitration Association to arbitrate. Well isn't that just lovely conflict of interest right there?

 

[myholdout]

It also states that Tesla will cover the costs to pay the American Arbitration Association to arbitrate. Well isn't that just lovely conflict of interest right there?

Plus I'm not even sure if it's legal in Canada to be practically forcing people to agree that they can't use the judicial legal system (unless a legal settlement agreement is made through the legal system on a case-by-case basis). Otherwise, the legal system is the legal system. It can't be trumped by some agreement.