2685.  The commissioner shall establish, in accordance with the
provisions of this chapter, procedures for mandatory arbitration of
pricing and product quality disputes arising out of written contracts
between manufacturers and contractors.




2686.  Upon the written request of any manufacturer or contractor,
the Conciliation Service of the Department of Industrial Relations
shall notify the other party to the dispute of the request for
arbitration and shall, within seven days of receipt of such request,
appoint an arbitration panel to hear and render a decision regarding
the dispute.  The panel shall be constituted as follows:
   (a) A management level representative from a manufacturer in the
general geographic area in which the dispute arises, provided that
insofar as posssible such manufacturer shall not be a direct
competitor of the manufacturer involved in the dispute to be
arbitrated.  This panel member also shall be selected in accordance
with the terms of the written contract.
   (b) A representative from the contractors' association whose
membership encompasses the general geographic area in which the
dispute arises.  This panel member also shall be selected in
accordance with the terms of the written contract.
   (c) A third party to be chosen and agreed upon by the first two
from a list of arbitrators provided by the American Arbitration
Association.  This party shall act as chairperson of the panel.



2687.  Within seven days of appointment, the chairperson of the
panel shall notify the parties in writing of the date, time, and
location of the hearing before  the panel.  The hearing date shall be
scheduled no later than 21 days after the filing of the request for
arbitration, provided, however, that each party  shall have no less
than five days notice prior to the hearing date.



2688.  On the date and time specified in the hearing notice, the
chairperson shall convene the hearing and shall determine whether
each party is represented.  If neither party is represented, the
arbitration shall be terminated, with costs assigned to the party
requesting arbitration, and the parties shall forfeit any further
rights under this section relating to the dispute for which
arbitration was requested.  In the event only one party is in
attendance, the arbitration shall proceed and the panel shall make
its award based upon the evidence presented.  Appearance at the
hearing by a party shall be deemed to waive any alleged defect in
notice.



2689.  To facilitate the conduct of the hearing, the following
procedures shall govern:
   (a) Upon good cause shown by a party, the chairperson shall be
empowered to issue subpoenae duces tecum and ad testificandum.
   (b) Each party may be represented by an attorney at the party's
own expense.
   (c) The formal rules of evidence shall not be applicable, but any
relevant evidence shall be admitted if it is evidence upon which
responsible persons would rely in the conduct of serious business
affairs.
   (d) All testimony shall be taken under oath.
   (e) No formal written records shall be kept unless one or both
parties agree to employ at their own expense a qualified court
reporter for that purpose.  In such case, a copy of the record shall
be provided to the panel and a copy shall be made available to the
other party at the standard cost for such additional copies.
   (f) Those in attendance at the hearing shall be limited to the
panel, the parties and their counsel, a court reporter, interpreters
when requested by a party or the panel, and witnesses while
testifying.
   (g) Upon the request of a panel member, the panel may allow a
period, not to exceed three days following the conclusion of the
hearing, during which time a party may submit otherwise admissible
evidence not available during the course of the hearing.



2690.  Within 15 days after the conclusion of the hearing, the panel
shall make a written award, which shall determine all questions
submitted for arbitration.  All decisions of the panel shall be by
majority vote and the award shall be signed by the members concurring
therein.  The panel immediately shall provide written notice of the
award to the parties and to the commissioner.



2691.  Within 10 days of receipt of notice of the award, the party
or parties  who are required to comply with the terms of the award
shall so comply and file proof of such compliance with the
commissioner or shall file a notice of appeal with the superior court
for the county in which the hearing was held.  Upon the filing of
such an appeal, a trial de novo shall be held, provided, however,
that the decision reached by the panel as stated in the award shall
be received as evidence by the trial court.



2692.  The basic costs of the arbitration proceeding, including
interpreters requested by the panel,  shall be borne equally by all
parties to the proceeding,  provided, however, that the panel may as
a part of its award impose all such costs on the party requesting
arbitration if a majority of the panel determines that the matter
brought before it was frivolous.  In addition, in the case of a
frivolous claim the panel may impose upon the party requesting
arbitration the costs of translators, court reporters, and reasonable
attorneys fees incurred by the other party.

If You Need to Retain and Pay a California Attorney Regarding This Issue:

Brian Kindsvater, Esq.
Law Office of Brian Kindsvater
2377 Gold Meadow Way, #1031
Gold River, CA 95670
email
916.761.6863 - Direct Line
877.600.8500 - Toll Free
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Mr. Kindsvater has assisted numerous individuals and businesses throughout California and the United States regarding California employment, business, and other legal issues.