Calif. Appeals Court Gives Mercedes Another Go At Arbitration

Law360, Chicago (April 9, 2013, 5:47 PM EDT) -- A California appeals court on Monday reversed a decision denying Mercedes-Benz Financial Services USA LLC's bid to compel arbitration in a putative class action over alleged debt collection violations, telling a lower court to consider whether unconscionable portions of a car purchase contract's arbitration clause can be severed.

The state's Fourth Appellate District, ruling in a case over the same form contract at issue in two suits now pending before the California Supreme Court, found that several portions of the arbitration clause were unconscionable, but remanded...
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