Mercedes Can't Force Arbitration On Car Buyer: Judge

Law360, New York (January 31, 2012, 8:13 PM EST) -- Mercedes-Benz USA LLC on Tuesday lost its bid to force arbitration with a man suing the company for allegedly failing to honor the conditions of a warranty he received upon purchasing a car at a California dealership.

An arbitration clause included in plaintiff  Don Lau's 2007 purchase agreement is unconscionable, Chief U.S. Magistrate Judge Maria-Elena James said in her order denying Mercedes-Benz's motion to compel arbitration.

Mercedes-Benz's assertion "that Mr. Lau had every opportunity to negotiate, and in fact did so prior to the date of ...
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