Can I be forced to participate in arbitration, and what are the advantages and disadvantages of participating?

I sold my boat last summer, but it apparently developed an engine problem after the sale. The buyer is trying to hold me responsible for the problem and he is trying to force me to participate in a binding arbitration procedure. The purchase contract did have a paragraph that discussed the arbitration of disputes, but there was no provision for me to initial the paragraph. Also, the arbitration paragraph said nothing about who would be conducting the arbitration, and I have heard some bad things about the outfit selected by the buyer. Can they force me to participate in the arbitration? If I do participate, what are the advantages and disadvantages of arbitration?

David Weil is the managing attorney at Weil & Associates (www. weilmaritime.com) in Seal Beach. He is certified as a Specialist in Admiralty and Maritime Law by the State Bar of California Board of Legal Specialization and a “Proctor in Admiralty” Member of the Maritime Law Association of the United States, an adjunct professor of Admiralty Law, and former legal counsel to the California Yacht Brokers Association. If you have a maritime law question for Weil, he can be contacted at 562799-5508, through his website at www.weilmaritime.com, or via email at dweil@weilmaritime.com.

ANSWER: In this case, they can compel you to arbitrate the dispute, but they cannot force you to submit to an arbitration forum that you disagree with.

In California, the resolution of a dispute through binding arbitration cannot be compelled unless the parties have agreed to do so in writing. The written agreement may be set forth as a paragraph within a contract, and in some cases California law will require the parties to initial the paragraph, and require the paragraph to be formatted in a particular font or typeface. Agreements that many consumers are familiar with, such as an agreement to arbitrate a medical malpractice

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