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Quixtar Modifies Mandatory Arbitration Rule |
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Quixtar just sent out a message about what's new in business and they
announced that they have changed the arbitration rule to give distributors more
options. Basically now you can now choose your own executioner!
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| No doubt Quixtar is trying to fend off further attacks of its
"unconscionable" arbitration clause, under which distributors are forced to
comply. Missouri Federal District Court Judge Richard E. Dorr ruled that the Quixtar
arbitration procedure was "unconscionable"
procedurally and substantively. Any Quixtar distributor who believes the IBOA is doing them a favor with the rules change or arbitration better think again. Not only does the JAMs arbitrator charge $400+ per hour but the losing party can not appeal the decision like in court, or have a jury of their peers hear the case. Typically the losing party is forced to pay the winning parties legal costs as well. Arbitration does not save attorneys costs as attorneys are still employed by both sides in the arbitration. The whole reason to have the arbitration is to keep negative information about Quixtar and their lines of sponsorship out of the public domain. An interesting new twist in (3) is that even if JAMS refuses to
arbitrate, arbitration can still be forced with another arbitrator. For
example in Kaldi's upline vs. Steve Kaldi, Kaldi could have been forced into
arbitration even though JAMs refused to hear the case since he was no longer an IBO.
All Quixtar would have to do is continue to search for an arbitrator willing to
make some money by taking the case. Another arbitrator could have ruled differently
and force Kaldi to deal with the bogus complaint. Kaldi was accused of defamation and
intentional interference of business relationships by contacting other distributors in his
line of sponsorship and after he distributed a public court complaint, in which his
upline, an attorney, was being sued for fraud in two separate incidents as an attorney for
an loan brokerage service, Wolf and Turner Investments. Wolf and Turner were being
sued by United American Capital Company and Inderra Houston LP. Kaldi also filed a
complaint with the Nevada Attorney general, which the upline attorney somehow thought
misrepresented them. The upline was demanding $100,000 in damages. The demand for arbitration See the Gooch vs. Anderson case for a true perversion of arbitration, where JAMs retries an already completed court case in Amway private court. |
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