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Avoiding Risky Credibility Battles in Arbitration Through Proper Documentation

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The arbitrator in this case highlighted that the outcome “ultimately turns on the credibility of the witnesses”. When disputes rely solely on one party’s word against another, dealers are exposed to uncertainty, extended litigation, and unnecessary costs.

Credibility competitions are unpredictable and rarely end quickly. Even if a dealer prevails, the process is time-consuming and expensive. Worse, the lack of concrete proof can allow meritless claims to persist much longer than they should.

The smarter approach is prevention. Dealers who document every step — from verbal disclosures to final signatures — avoid leaving outcomes to credibility alone. Written and digital evidence transforms uncertain disputes into decisive defenses.

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