Auto Part Maker Can't Kick Price-Fix Suit Into Arbitration

Law360 (January 30, 2019, 7:29 PM EST) -- KYB Corp. can't force into arbitration a suit accusing it of conspiring with other auto parts manufacturers to fix the price of shock absorbers, a Michigan federal court has ruled, dismissing the argument that a warranty bound the parties to arbitrate.

The direct purchasers — companies who bought the shock absorbers for resale — are not bound by the limited warranty that KYB had claimed contained an arbitration provision, meaning the suit should be booted, U.S. District Judge Marianne O. Battani said in her opinion Tuesday.

"Their agreement ... to service the warranty, does not render them parties to the arbitration...

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