California Code of Regulations › Title 16 - Professional and Vocational Regulations › Division 33.1 - Arbitration Certification Program › Article 3 - Minimum Standards for Arbitration Programs › Section 3398.2 - Qualification, Selection and Training of Arbitrators

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Arbitrators shall be persons interested
				in the fair and expeditious resolution of consumer disputes.
(b) No arbitrator deciding a dispute shall be
				a party to the dispute, or an employee or agent of a party other than for
				purposes of deciding disputes.
(c)
				No arbitrator deciding a dispute shall be a person who is or may become a party
				in any legal action, including but not limited to a class action in which the
				arbitrator is a representative of the class that relates to the product or
				complaint in dispute, or an employee or agent of such person other than for
				purposes of deciding disputes.
(d)
				For purposes of subdivisions (b) and (c) of this section, a person shall not be
				considered a "party" solely because he or she acquires or owns an interest in a
				party solely for investment, and the acquisition of ownership of an interest
				which is offered to the general public shall be prima facie evidence of its
				acquisition or ownership solely for investment.
(e) When one or two arbitrators are deciding
				a dispute, all shall be persons having no direct involvement in the
				manufacture, distribution, sale or service of any product. When three or more
				arbitrators are deciding a dispute, at least two-thirds shall be persons having
				no direct involvement in the manufacture, distribution, sale or service of any
				product. "Direct involvement" shall not include acquiring or owning an interest
				solely for investment, and the acquisition or ownership of an interest which is
				offered to the general public shall be prima facie evidence of its acquisition
				or ownership solely for investment.
(f) A person who is otherwise qualified to
				serve as an arbitrator under subdivisions (a) through (e) of this section shall
				not be disqualified solely because the person is a dealer of the
				manufacturer.
(g) Where arbitrators
				are selected from a list of arbitrators, selection shall be on a random
				basis.
(h) The arbitration program
				shall provide each arbitrator who is assigned to decide disputes with the text
				and an explanation of the applicable law (Section
				3396.1(a)).
(i) The arbitration program shall provide
				each arbitrator with relevant training, including periodic updates and
				refresher courses, which shall include training in the principles of
				arbitration; training in the applicable law including the rights and
				responsibilities of arbitrators under this subchapter (including the right to
				request an inspection or other action under Section
				3398.5(f)); and
				training in what a decision must and may include (Sections
				3398.9 and
				3398.10).
(j) An arbitrator who does not meet the
				qualifications in this section or who cannot demonstrate both the fact and
				appearance of fairness and impartiality in deciding disputes shall disqualify
				himself or herself.
1. New section
				  filed 1-3-90; operative 2-2-90 (Register 90, No. 3).
2. Change
				  without regulatory effect amending NOTE filed 8-31-94 pursuant to section
				  100, title 1, California Code of
				  Regulations (Register 94, No. 35).
Note: Authority cited: Sections
					 472.1(b)
					 and
					 472.4(f),
					 Business and Professions Code. Reference:
					 16 CFR Sections
					 703.3(a) and (b) and
					 703.4(a),
					 (b) and (c); and Section
					 1793.22(d)(1), (4) and
					 (8), Civil
					 Code.