Expert: Timmy Chou - 7/30/2005

Question
Hi,
  I am a pastor.  My church bought an organ about 6 months ago from an Allen dealer for $14,000 used.  The showroom we purchased it from is in PA but their main showroom where the salesman works, etc. is in W. Va.  
  The salesman said it had a carillon on it but when set up it had no carillon.  It took 2 months for them to make the chip and install it.  When they did it broke all the presets on the organ.  They said the factory would have to make another chip to run both carillon and presets.  It has been over 4 months and they seem to have forgotten us.  We call and call and they don't reply back.  
   Now last week a lightning storm blew the organ out.  We purchased from them an Allen surge protector which they said would protect the organ from lightning.  Evidently it didn't work.  We called for them to send a repairman out and they said they would get back to us that day.  It's been a week and they still haven't gotten back to us.  I think they are playing the same game as with the chip.
  Can you give us advice on what to do?  Do we contact the Better Business Bureau or keep calling them or threaten a lawsuip?  Any advice would be appreciated.

Answer
Thank you for your question!

Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is unfortunately very typical.  I am not a lawyer, nor can I mediate your dispute with just you alone but I can respond to your question from my business consulting experience.  Note that this dispute may have legal implications and you may wish to consult an attorney.

These sort of disputes happen all the time and are known as "squeaky wheel" problems.  Since you have very little leverage with the merchant, they have little interest in helping you solve your problem.  

You could sue, but the merchant knows you are not interested in incurring the expense, and, in your profession, you may not have the inclination.  It is likely you will pay more in attorney fees than the cost of a settlement.  In fact, crooks count on this strategy in order to pick up cash.  The "fighting" strategy will cost you alot of money and time and in the end you will get some satisfaction, though I doubt you will be money ahead.

I am not familier with PA state resources but here are some other ideas you can try.

Many states have an Office of Consumer Affairs or an Ombudsman's Office as an advocate for consumers.  Try to locate them with your story.  You can try also in W. Va.

Make sure you have a prepared chronology detailing your experience, and make sure you have sent registered letters to the merchant with your demands.  

Copy your letter to every imaginable consumer resource you might have available in your city such as better business bureaus, newspapers, trade associations, consumer advocacy groups, and even sometimes a TV news guy that sticks up for the little guy when they get beaten up.  Perhaps they might need a story about the humble paster being screwed by a cheap merchant.

Make sure they know that you will stop at nothing to be treated fairly and you will make sure that everyone knows how they do business.

Write a letter to your church administrators recommending the entire church never consider buying an Allen organ again, and be sure to copy the President of the Allen company.

If you can create enough pain for all concerned they are more likely to take care of you.  The goal here is to get them to realize it will cost alot more to deal with all the collateral damage you will cause them by your willingness to proclaim their nefarious business practices to everyone, and they will settle with you.

If you have to go to court, begin to document, in a chronological way, all these events as they unfold so the judge can see clearly that you have been mistreated.

As you can see, this is a long and tortured path, but you need to "squeak" as loud as you can to get these guys off their rear ends.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

    Confidential, no public record
    Limited exchange of documentation, information
    Quick, don't have to wait for a court date
    Arbitrators have expertise in the subject matter and are trained in conflict resolution
    Cheaper than litigation
    Preserves business relationships

Negatives of Arbitration

    It's a compromise, no %100 winner
    Complex arbitration can be costly
    If not satisfied, may litigate the arbitration procedure
    Poor results with an unskilled arbitrator
    Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

    Neutral mediator can objectively suggest alternatives not considered before
    Parties are directly engaged in negotiating the settlement
    Can be quicker than litigation
    Less costly than litigation
    Preserves business relationships
    85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

    may not reach a binding decision
    unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

    a clear winner and loser
    uses a prescribed set of procedures
    more predictable outcomes
    is final

Negatives of Litigation:

    waiting for court dates can do more hare
    usually more expensive than mediation and arbitration
    part of the public record