Starting a trucking company seems like an easy job but it requires technicality and strict compliance with the local and federal regulatory laws. You have to follow the rules and register your company with many bodies to ensure the safety of your drivers, trucks, and other road users. Among many important things that an owner of a trucking company should know, the Arbitration Program for movers moving authority association is one of the most important things.
Here is what you need to know about the arbitration program in a trucking company, and why you need one.
What Is An Arbitration Program?
The arbitrator is a neutral body that can help trucking companies and clients resolve any kind of dispute outside the court. The Arbitration Program is a legal requirement by the Federal Motor Carrier Safety Authority (FMCSA) to be fulfilled by all movers.
This is especially important for those trucking companies that cater to the needs of common people, such as moving household items from one place to another. Many times when movers are moving household items, they have to travel large distances. During this time the truck may become part of an accident, or the food is damaged due to unforeseen reasons. In such conditions, the owner of the goods can ask the movers to pay for the loss.
An arbitration body can help resolve the issue outside the court. This body listens to the cases involving loss of the items, damage to the items, and the extra charges applied to shippers through movers.
Benefits Of Arbitration Program For The Trucking Company
If you are the owner of a trucking company and do not understand the purpose of the arbitration program then here is the list of advantages you can get with this program.
1. Quick Resolution Of Disputes
Arbitrators can resolve the dispute much quicker than the court. A court trial may proceed for as long as years, without any proper ending. Whereas, arbitration can resolve the issue quickly. Secondly, court dates can be difficult to follow because of the schedule. However, you can set arbitration dates according to your schedule.
2. Simplified Process
The litigation process is complicated and requires filing papers and motions. Fighting back in the court can be a difficult task. However, the arbitration process is much more simplified. You do not have to answer interrogations, avoid depositions and document production. The arbitration process can be handled simply even on a phone call.
3. Keeps Privacy Intact
Court trials can badly damage the reputation of a well-established business. If market reputation is your concern then arbitration is the best solution to solve the issues with the clients. Arbitration ensures that the privacy of your moving company is maintained. The resolution process can be kept confidential, however, the court may attract the public eye and damage your market reputation.
The arbitrator is chosen by both parties. Therefore, you can ensure that the third party is neutral and impartial. Impartiality is particularly important for fair judgment. However, a court judge may be partial sometimes. Some judges might consider truck drivers to be on the wrong side, whatever the case may be. Therefore, arbitration can be a better option to resolve disputes.
Arbitration can be a much cheaper option to resolve a dispute as compared to court. In Litigation, you have to hire a lawyer and follow court proceedings. It can take years to resolve the case, therefore, bidding you to lawyers fees for a long time and making it an expensive option. Preparing for arbitration is much cheaper in this regard.