Unfair Contract Nixes Car Dealer's Arbitration Bid: Court

Law360, Los Angeles (January 8, 2013, 9:56 PM EST) -- Citing an “unconscionable” arbitration provision in an automobile sales contract, a California appeals court on Monday affirmed a trial court’s decision that car dealer Import Motors Inc. should not be allowed to compel arbitration of a proposed consumer class action alleging it sold used cars as new.

Monday’s unpublished opinion halts Import Motors’ attempt to force arbitration of the dispute and marks the latest turn in a November 2010 suit brought by car buyer Gabriel Natalini alleging Import Motors knowingly misrepresented customers’ used trade-in cars as...
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