On occasion, a third party may be necessary to help resolve Disputes that may arise between you and Crutchfield Corporation and Crutchfield New Media LLC ("Crutchfield"). This section of the Terms of Use (the "Dispute Resolution Agreement") limits you and Crutchfield to resolving Disputes between them by individual arbitration (or small claims court, if the Dispute qualifies), unless the Dispute is expressly excluded from the arbitration requirement. This Dispute Resolution Agreement shall survive any termination, expiration, or nullification of any or all the Terms of Use.
For all disputes required to be arbitrated under this dispute resolution agreement, you and Crutchfield Corporation and Crutchfield New Media LLC waive all rights to a jury trial, to participate in any class action or comparable collective proceeding, and to have those disputes decided in courts other than small claims court.
"Dispute" and "Disputes" shall be interpreted in the broadest possible sense to include, without limitation, any and all complaints, claims, and controversies of every kind, including, but not limited to, statutory, regulatory, constitutional, contractual, common law (including torts of any kind), and tax-related (including erroneous sales tax collection) causes of action, and encompassing fully all those involving allegations of negligence, fraud, misrepresentation, and the alleged breach of any duty whatsoever.
A. General Arbitration Provisions. The following general provisions apply to all Disputes which are subject to the requirement to arbitrate ("Arbitrable Disputes"). These provisions are intended to be read harmoniously with the rules governing individual and mass arbitration set forth below. To the extent that there is any conflict between these general provisions and those specific rules, the specific rules will control.
(1) Persons and Entities Covered. The obligation to arbitrate extends to all agents, attorneys, contractors, subcontractors, employees, service providers, and others acting on behalf of you or Crutchfield, or anyone on whose behalf you use the Sites and Apps or obtain Services. It also extends to Disputes in which claims of any kind are threatened or asserted against any corporations and other business entities related in any way to Crutchfield (including, but not limited to, parents, subsidiaries, and sibling corporations) and which arise out of your use of the Sites and Apps and the Services.
(2) Governing Law. Notwithstanding any other provision of the Terms of Use, all arbitrations are governed exclusively by the Federal Arbitration Act (FAA), 9 U.S.C. §§ 1 et seq., and not any state or local laws, and you and we agree that it should be interpreted in a manner that protects and preserves the obligation to arbitrate in strict accordance with this Dispute Resolution Agreement.
(3) Opt-Out Rights. You have the right to opt out of the arbitration requirement by sending a written notice expressly stating "I opt out of the dispute resolution agreement" or similar words by email to [email protected] or by certified mail, return receipt requested to: Crutchfield, 1 Crutchfield Park, Charlottesville, Virginia 22911, ATTN: Legal Department, within thirty (30) days after you first agree to the Terms of Use. Opting out has no effect on any other dispute resolution agreements that you may currently have or may enter in the future with us, nor does it eliminate or change any other rights or requirements of the Terms of Use. Nor does opting out prevent you from later agreeing to a dispute resolution agreement with us.
(4) Mandatory Informal Settlement Process. For Arbitrable Disputes only, you and we must participate in an informal settlement process (the "Informal Settlement Process") as follows before any arbitration can be commenced:
a. The party initiating any Dispute ("Claimant") must send a signed, written statement ("Claim Statement") to the other party ("Respondent"). The Claim Statement must include the Claimant's name, mailing address, email address, and a concise description of the Dispute, including any monetary demand. Claim Statements submitted by you must be sent by email [email protected] or by certified mail, return receipt requested to:
Crutchfield
1 Crutchfield Park
Charlottesville, Virginia 22911
ATTN: Legal Department
b. If the Claimant is represented by an attorney, the Claimant's attorney must also sign the Claim Statement under oath or penalty of perjury, in accordance with 28 U.S.C. § 1746 or similar state laws, certifying compliance with all obligations to conduct a reasonable investigation into the factual and legal basis of any claim and to represent that any claim asserted has a legal and factual basis under the standard that applies to representations to the court under Rule 11(b) of the Federal Rules of Civil Procedure (or any successor provision in the event of an amendment to that rule) (a "Rule 11 Certification").
c. Once a properly completed Claim Statement and any applicable Rule 11 Certification is received, the Claimant and Respondent shall for a period of sixty (60) days seek to resolve the Dispute amicably. Any applicable statutes of limitations for the Dispute will be stayed during this period.
d. Failure to complete in good faith the Informal Settlement Process as to any Arbitrable Disputes is a material breach of this agreement. No arbitration may be filed nor any arbitrator appointed or arbitration fees imposed on the Respondent until this process has been completed. If an arbitration is commenced in violation of this requirement, the Claimant shall pay all fees or costs of arbitration imposed on Respondent.
(5) No Class Actions. Except as expressly permitted under the Mass Arbitration Rules (set forth below), you and we agree that all Arbitrable Disputes must be resolved individually and not via a class or consolidated proceeding of any kind, even if the requirement to arbitrate is found unenforceable for any reason. However, nothing restricts the settlement of Disputes by mutual agreement, including through court-approved class action settlements.
(6) Changes. If we change the arbitration requirements of this Dispute Resolution Agreement after you last accepted the Terms of Use, you can reject those changes by sending written notice within thirty (30) days of the effective date of such changes to [email protected] or by certified mail, return receipt requested to:
Crutchfield
1 Crutchfield Park
Charlottesville, Virginia 22911
ATTN: Legal Department
The notice must include your full name, email address, and mailing address, and state specifically that you reject the Dispute Resolution Agreement changes. By rejecting these changes, you agree to arbitrate any dispute based on the arbitration requirements that were in effect when you last agreed to the Terms of Use. The rejection of these changes shall have no effect on any other provisions of the Terms of Use. Nor does rejecting Dispute Resolution Agreement changes preclude you from later agreeing to those changes.
(7) Improperly Commenced Arbitration. If either you or we believe the other party has started or intends to start any arbitration in violation of this Dispute Resolution Agreement, you and we have the right to seek a court order to stop that arbitration, and any arbitrations related to or giving rise to such a court action shall be stayed and no arbitration fees or costs imposed until the court action (including appeals) is concluded fully and finally. Upon a finding that a Dispute was threatened, filed, or maintained in knowing violation of this Dispute Resolution Agreement or to exert undue pressure, or is frivolous, a court may award the costs and fees of arbitration and any associated litigation, including reasonable attorneys' and expert fees, to the other party.
(8) Survival and Severability. This Dispute Resolution Agreement shall survive and remain in effect even after your relationship with Crutchfield has ended. If any part of the Dispute Resolution Agreement is found to be unenforceable, the remaining provisions will remain in force and apply fully.
(9) Delegation. Disputes concerning whether you and we have entered a valid and binding agreement to arbitrate shall be decided exclusively by a court of competent jurisdiction, not by an arbitrator. All arbitrations where such issues are raised by either party shall be stayed until a court action (including all appeals) is fully and finally concluded. All other issues in Arbitrable Disputes shall be resolved by an arbitrator.
(10) Offer of Settlement. In any Arbitrable Dispute between you and Crutchfield, the Respondent may choose to make a written settlement offer at any time after the receipt of a Claim Statement. The offer amount and its terms will not be revealed to any arbitrator until after a final award (which includes any dispositive decision). If the value of that award is less than the value of the settlement offer, or if the award favors the Respondent, the Claimant shall pay the Respondent's arbitration fees, legal and expert fees, and costs which were incurred or imposed after the offer to the fullest extent allowed by law.
(11) AAA Arbitrations. If the American Arbitration Association (the "AAA") is for any reason whatsoever unavailable, unable, or unwilling to handle an arbitration assigned to it under this Dispute Resolution Agreement (including as a result of any aspect of this Dispute Resolution Agreement which does not meet with the AAA's approval), or if the AAA for any other reason whatsoever declines to handle an Arbitrable Dispute assigned to it, the parties shall use their best efforts to find and agree upon a substitute arbitration organization guided by the following criteria: costs and obligations reasonably proportionate to the amount in controversy; meaningful opportunities to streamline the individual arbitration process and otherwise reduce costs and expenses to both sides; and resources sufficient to resolve Disputes promptly. Should the parties fail to agree on a substitute for the AAA, the parties shall ask a court of competent jurisdiction to appoint a substitute arbitration organization to conduct the individual arbitration in conformity with all applicable requirements of this Dispute Resolution Agreement including the arbitrator selection criteria set out in this paragraph.
B. ARBITRATION RULES. The arbitration process will vary depending on whether an Arbitrable Dispute is pursued individually by a Claimant (an "Individual Arbitration") or as part of a larger group of associated claims (a "Mass Arbitration," defined below). In all instances, the arbitrator shall have the power to provide the same relief available in court.
(1) Individual Arbitration. All Individual Arbitrations shall be before a single arbitrator of the AAA. Arbitrations handled by the AAA and involving consumer disputes as defined by the AAA will be governed by this Dispute Resolution Agreement and the AAA Consumer Arbitration Rules and the AAA Consumer Due Process Protocol (the "Consumer Rules") (https://www.adr.org/consumer) in effect on the date when the Dispute arose (each a "Consumer Arbitration"). Where the Consumer Rules do not apply, the arbitration shall be governed by these Individual Arbitration Rules and the AAA Commercial Arbitration Rules (each a "Commercial Arbitration") together with the AAA Optional Appellate Rules: (https://www.adr.org/commercial). If there is a conflict or inconsistency between this Dispute Resolution Agreement and any applicable AAA rules and protocol, the terms of this Dispute Resolution Agreement shall control. In any Commercial Arbitration, the prevailing party shall recover reasonable attorneys' fees, expert witness fees, and costs, including costs and fees incurred in collection. In any Consumer Arbitration, the prevailing party shall be able to recover attorneys' fees where and as expressly allowed by applicable law.
a. For consumer arbitrations where Disputes (including counterclaims) are under $25,000 USD each, the case will be decided without appearances, based only on submitted documents (including sworn statements) under R-36 of the Consumer Rules. However, the arbitrator may permit reciprocal, reasonable discovery (strictly limited in nature and proportionate in scope and cost to the Dispute and which does not impose undue cost or hardship on either of the parties), and may also allow for a hearing if the arbitrator, in their discretion, deems it necessary, which shall be by phone or video conference, unless, in the arbitrator's sole discretion, fairness requires an in-person hearing and the cost of an in-person hearing is proportionate to the Dispute amount.
b. An arbitration before the AAA can be requested by mail or online through the AAA's website (https://www.adr.org/Support). A copy of the arbitration demand shall be emailed [email protected] or by certified mail, return receipt requested to: Crutchfield, 1 Crutchfield Park, Charlottesville, Virginia 22911, ATTN: Legal Department. Upon request by either you or us, any attorney representing a party demanding arbitration shall provide to the Respondent and the AAA a Rule 11 Certification.
(2) Mass Arbitration. If 20 or more Claimants (each a "Mass Arbitration Claimant") or their lawyers or representatives file or disclose to us an intention to file demands for arbitration raising substantially similar Arbitrable Disputes, and counsel or representatives for the claimants are the same or coordinated across these Disputes (a "Mass Arbitration"), these special Mass Arbitrations Rules alone shall apply instead of the Individual Arbitration Rules set forth above or any mass arbitration rules published by the AAA or any other arbitration organization. In the event of any conflict, inconsistency, or difference between these Mass Arbitration Rules and the Individual Arbitration Rules, above, the Mass Arbitration Rules shall control.
a. Enhanced Settlement Process. . Each Mass Arbitration Claimant must comply with the Informal Settlement Process set forth above as enhanced here to reflect the seriousness, scope, and impact of a Mass Arbitration and offer you and us additional tools to increase the odds of reaching an amicable settlement (the "Enhanced Settlement Process"). Full compliance with the Enhanced Settlement Process iss a mandatory condition precedent to Mass Arbitration Claimants arbitrating or litigating their Disputes. To prevent the Disputes asserted by the Mass Arbitration Claimants from expiring, all statutes of limitation will be stayed for all Mass Arbitration Claimants during the Enhanced Settlement Process and until its mandatory mediation component (described below) is completed.
i. To initiate the Enhanced Settlement Process, the Mass Claimants shall individually or collectively submit to us a Claim Statement fully compliant with the requirements of the Informal Settlement Process described in Paragraph A(4), above, including the Rule 11 Certification requirement. Lawyers representing the Mass Arbitration Claimants shall provide a certification, under oath, they have authority to arbitrate, mediate, and settle the Disputes raised by each of the Mass Arbitration Claimants. You and we shall then engage in a good faith effort to settle the underlying Disputes for a period of sixty (60) days.
ii. If any Disputes remain upon the completion of the foregoing settlement discussions, the Mass Arbitration Claimants and we will then each select not more than two (2) non-settling Mass Arbitration Claimants for up to four (4) initial arbitrations (the "Initial Arbitrations") intended to inform and benefit a mediated settlement discussion described below. Each Initial Arbitration will be decided under the Individual Arbitration Rules, above, with each assigned to a different arbitrator. The Initial Arbitrations must be conducted, and final, reasoned decisions issued, within one hundred twenty (120) days of their commencement.
iii. Promptly upon the issuance of reasoned decisions in all of the Initial Arbitrations, the parties' counsel shall participate in good faith mediation for a period of sixty (60) days seeking in good faith to resolve all remaining Disputes of the Mass Arbitration Claimants (the "Mandatory Mediation") with JAMS (https://www.jamsadr.com/). Except for the Initial Arbitrations, no arbitrations will be commenced by the Mass Arbitration Claimants until after the completion of both the Initial Arbitrations and the mandatory mediation that follows.
b. Arbitration of Unresolved Disputes. Any Mass Arbitration Claimants whose Disputes remains unresolved at the conclusion of the mandatory Enhanced Settlement Process (the "Unresolved Disputes") shall pursue their Disputes in small claims court (if eligible) or as individual arbitrations with FairClaims, Inc. ("FairClaims") (https://www.fairclaims.com). Reasoned decisions from the Initial Arbitrations can be presented in small claims court and arbitration for their persuasive value but shall not be binding. Discovery obtained in the Initial Arbitrations may also be used in connection with such proceedings. If FairClaims is unavailable or unable to hear the Unresolved Disputes, the parties shall use their best efforts to find and agree upon a substitute arbitration organization to provide individual arbitration of the Unresolved Disputes, guided by the following criteria: costs and obligations reasonably proportionate to the amount in controversy; meaningful opportunities to streamline the individual arbitration process and otherwise reduce costs and expenses to both sides; and resources sufficient to resolve Disputes promptly.
c. Challenges to the Mass Arbitration Rules. Any challenge to these Mass Arbitration Rules, or any component of them, shall be resolved exclusively by a court of competent jurisdiction, not by any arbitrator. During such court proceedings, any pending arbitrations shall be fully stayed, no arbitration fees and costs imposed or paid, and no further arbitrations filed until such court action (including all appeals) is fully and finally concluded. Any ruling that the Mass Arbitration Rules or any aspect of them are invalid or unenforceable shall not affect the validity or enforceability of any other parts of the Terms, including the Dispute Resolution Agreement. You and we agree that the Enhanced Settlement Process shall be mandatory for all Mass Arbitration Claimants and us as a condition precedent to arbitrating or adjudicating the disputes of the Mass Arbitration Claimants even if a court finds Paragraph 2(b) (Arbitration of Unresolved Disputes) to be void or unenforceable, in whole or in part, for any reason.
d. Mandatory Nature of the Mass Arbitration Rules. If Paragraph 2(b) (Arbitration of Unresolved Disputes) is determined to be void or unenforceable for any reason in a court action that is fully and finally concluded, or if the parties are unable in good faith to select a substitute arbitration organization for FairClaims as provided for under said Paragraph 2(b), any Unresolved Disputes shall be heard and resolved in the state and federal courts of the Commonwealth of Virginia, and not through arbitration. If any court action permitted under this provision is pursued as a class action, the class shall be limited to the Mass Arbitration Claimants.