When Is Arbitration Appropriate?
Disputes eligible for arbitration are unresolved claims that may occur as a result of loss or damage to an interstate shipment of household goods for an individual householder (also referred to as a C.O.D. shipper). Claim disputes involving other types of interstate claims may be arbitrated under the program if both parties agree to do so. In accordance with Federal law and the terms of your Bill of Lading contract, a claim for loss or damage must be filed with your mover within nine months of delivery (a shorter period may apply if a shipper elects to institute a court action). The carrier must acknowledge your claim within 30 days of receipt. Within 120 days, the carrier must pay, deny, make a settlement offer, or advise you of the status of the claim and the reason for any delay in disposition. If you (the shipper) and your mover (the carrier) cannot resolve a dispute with your claim, typically involving the amount of the settlement offer, you may request that arbitration procedures be used to resolve the claim. Before arbitration can begin however, you must be sure that you have exhausted your remedies through the mover's regular claims process and that the mover has made its final offer.

What are the Legal Effects of the Program?
Congress provides guidelines for dispute settlement programs in Section 14708 of Title 49, United States Code, under the authority of the Department of Transportation. These guidelines are reflected in the program rules.

It is important to understand that arbitration under this program is optional and voluntary for the shipper, but not always so for the carrier. If a shipper requests arbitration of a disputed loss or damage claim over , the disputed claim will be submitted to arbitration only if both the shipper and the carrier consent to binding arbitration. Shipper requests for arbitration on disputed claims of or less must be submitted to binding arbitration by the carrier. Once both the shipper and the carrier have signed the official forms and submitted the dispute to AAA for resolution, a neutral AAA arbitrator renders a final decision.