9th Circ. Takes Back Warranty Arbitration Clause Ruling

Law360, New York (April 11, 2012, 5:10 PM EDT) -- The Ninth Circuit on Wednesday vacated its ruling that the Magnuson-Moss Warranty Act bars mandatory arbitration clauses in warranties, prompted by the California Supreme Court's decision to take up a dispute over an arbitration clause in a car dealer's sales contract.

The Ninth Circuit withdrew a September order reversing an arbitration award for a Porsche dealer accused of refusing to honor a customer's warranty claims, saying it would watch how the California Supreme Court rules in Sanchez v. Valencia Holding Co. LLC.

The Sept. 20 opinion...
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