This law requires a commissioner to create a process for mandatory arbitration to resolve disputes about pricing and product quality between manufacturers and contractors, as outlined in their written contracts.

This California law outlines the arbitration process for disputes between manufacturers and contractors. When a manufacturer or contractor requests arbitration, the California State Mediation and Conciliation Service will notify the other party and appoint an arbitration panel within seven days. The panel consists of three members: a management representative from a nearby manufacturer (not a direct competitor), a representative from the local contractors' association, and a neutral third party from an American Arbitration Association list, who will chair the panel.

Once a chairperson is appointed, they must inform everyone involved of when and where the hearing will happen, within seven days. The hearing should take place within 21 days of asking for arbitration but everyone must get at least a five-day heads-up before the hearing.

This section explains what happens during an arbitration hearing. At the scheduled time and place, the chairperson checks if both parties are represented. If neither shows up, the arbitration stops, the requesting party pays any costs, and they lose further rights to dispute under this section. If only one party shows up, the hearing continues, and a decision is made based on available evidence. Showing up means you can't later complain about not getting enough notice.

This law section outlines the procedures for conducting a hearing. First, a party can request subpoenas for witnesses or documents if there's good reason. Every party can hire their own lawyer if they wish. While formal evidence rules don’t apply, any relevant information that responsible people would consider important in serious business can be used. Witnesses must testify under oath. Written records aren’t required unless the parties agree to hire a court reporter at their own cost, with a copy provided to all parties. Only specific people like parties, their lawyers, and witnesses can attend. A party can present new evidence within three days after the hearing if it couldn’t be obtained earlier.

After a hearing is finished, the panel must make a written decision within 15 days. This decision addresses all issues that were brought up during arbitration. The decision needs to be agreed upon by a majority of the panel members and signed. Once the decision is made, the panel must quickly inform the involved parties and the commissioner in writing.

When a party gets notified about a decision or 'award' they must follow, they have two options: within 10 days, they must either comply with the award and prove compliance, or they can challenge it by appealing to the superior court where the hearing occurred. If they choose to appeal, a new trial is held, but the original panel's decision will still be considered as evidence in this new trial.

In an arbitration case, the costs, including those for interpreters, are generally split equally among all parties involved. However, if the panel decides that the request for arbitration was made without a serious basis (frivolous), they can require the party who asked for arbitration to pay all these costs. This can also include charges for translators, court reporters, and reasonable attorneys' fees for the opposing party.