[Congressional Record Volume 148, Number 64 (Friday, May 17, 2002)]
[Senate]
[Pages S4526-S4527]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       MOTOR VEHICLE FRANCHISE CONTRACT ARBITRATION FAIRNESS ACT

  Mr. DASCHLE. Mr. President, I am concerned that there has been a 
Republican objecting to considering the Motor Vehicle Franchise 
Contract Arbitration Fairness Act, S. 1140. Senator Lott and I are 
cosponsors of this bill to provide basic fairness to many small 
businesses in Mississippi and South Dakota, and thousands more across 
the country.
  This legislation enjoys exceptional bipartisan support. In fact, more 
than 60 Senators have cosponsored the Motor Vehicle Franchise Contract 
Arbitration Fairness Act, including, I might add, the chairman and 
ranking members of the Judiciary Committee.
  It enjoys such exceptional bipartisan support because it restores 
fundamental fairness to the automobile franchising process.
  Today, large automobile manufacturers are forcing small business 
automobile dealers to sign away their legal

[[Page S4527]]

rights as a condition of entering into a franchise agreement. These 
franchise contracts are presented by the automobile manufacturers as a 
``take it or leave it'' proposition, without any room for good faith 
negotiations. It is wrong for one party to take advantage of its raw 
negotiating power to limit the legal rights of another party.
  This bipartisan bill amends the Federal Arbitration Act to right this 
wrong by simply reserving voluntary arbitration to resolve disputes 
between the dealers and manufacturers.
  Senator Johnson and I have heard from many automobile dealers in 
South Dakota who agree with us that this is an important piece of 
legislation. They have had enough of being forced into accepting 
mandatory binding arbitration clauses as part of their franchise 
contracts. They are just small business owners trying to keep their 
legal rights and make a living. South Dakota automobile dealers tell me 
they just want to be treated fairly, and they should be treated fairly.
  I hope the minority will soon allow the Senate to consider the 
bipartisan act. This matter is a matter of basic fairness for thousands 
of small business owners across the country. The time has come for the 
majority of the Senate to be heard on this important issue.
  Mr. President, I see no one who is seeking recognition, so I yield 
the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mrs. HUTCHISON. Mr. President, I ask unanimous consent the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Wyden). Without objection, it is so 
ordered.

                          ____________________