Okla. Ruling Highlights Nuances In Drafting Service Contracts

By Brian Casey and Jon Gillum (June 15, 2020, 6:00 PM EDT) -- In a brand new opinion, the Oklahoma Supreme Court in Sparks v. Old Republic Home Protection Co. Inc.[1] held that what appeared (and was likely intended) to be a service contract was actually an insurance contract by way of also being a warranty, thereby preventing enforcement of an arbitration clause in the contract. Say what?

The lines separating insurance, warranties and service contracts (more commonly known in business parlance as extended warranties, especially when issued by a product manufacturer), are not always clear. And confusion about the categorization of such products and which laws, including important ancillary laws like data privacy...

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