I don't know what arbitration entails, so forgive my ignorance. Back in early June, we serviced a Subzero fridge. The part was defective so we went back out. While trying to fix, we discovered another faulty part. Since the customer already paid us for the 1st visit, and the 2nd visit uncovered more work needed, we decided to make a full repair of everything at no extra cost. The customer declined and went with someone else. The customer is threatening arbitration and demanding partial refund. Our concern is that they are telling their bank [and likely others] that we misled them and others on our website about warranty services for Subzero, which no where on our site does it indicate. We're concerned about slander at this point. There are more details, however not enough space on this dialogue box. Please contact me and I can fill you in with more.
Arbitration is a form of dispute resolution that applies when both parties have agreed to use it, rather than go through the courts.
It is impossible to have a meaningful discussion of the substance of your dispute without a review of the actual documents in question. It is particularly difficult to understand how the customer's bank, with whom you have no relationship, can threaten you effectively.
You need to see an attorney and bring your documentation.
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