Toyota Dealer Wins Bid To Arbitrate Customer's Fraud Claims

Law360 (July 13, 2020, 5:11 PM EDT) -- The New Jersey state appeals court ruled Monday that a customer of a Toyota auto dealership in Wood-Ridge must arbitrate his allegations that his trade-in vehicle was undervalued, reasoning that the parties agreed to deal with claims out of court.

A two-judge Appellate Division panel disagreed with a Superior Court judge's finding that the arbitration provisions contained in East Coast Toyota's motor vehicle retail order and retail sales installment contracts were ambiguous and thus unenforceable due to wording inconsistencies. The dealership had sought to compel arbitration of Teofilo Guzman's lawsuit.

"The arbitration provisions signed by plaintiff in both the retail order and...

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