Tesla owners are outraged: Electric car's exaggerated range leads to lawsuit and arbitration

A federal court has ruled that Tesla drivers who sued the company over the exaggerated range of their electric vehicles should settle their disputes in arbitration instead of in court.

Flashback

Arbitration is a dispute resolution procedure outside the court system where the conflicting parties agree to hear the decision of a third neutral party or arbitrator. This method of dispute resolution avoids long and complicated litigation, speeds up the case and reduces the cost of resolving it.

In Tesla's case, the company has established agreements with its customers that include arbitration clauses. This means that disputes between customers and the company must be resolved in an arbitration process rather than through the courts. In the arbitration process, the parties present their arguments to an independent arbitrator who makes the final decision.

This decision means that disputes will be resolved in an alternative dispute resolution mechanism rather than through a court process. The tribunal can also grant an injunction against Tesla if it decides that it is necessary for the public good.

The lawsuits arose after a Reuters investigation revealed that Tesla exaggerated the range of its electric vehicles. The drivers are seeking compensation for violations of California's consumer rights and unfair competition laws.

Source: Ars Technica