Did the trial court rule correctly? Explain. Leroy purchased a used car from AutoNation, a used-car dealer
Question:
Did the trial court rule correctly? Explain.
Leroy purchased a used car from AutoNation, a used-car dealer chain. All buyers entered into a purchase agreement, and those who financed their vehicles through AutoNation also signed a retail installment contract. The purchase agreement included an arbitration agreement, but the retail installment contract did not. Leroy alleged that she and all other customers who signed installment contracts were overcharged as a result of a computer error committed by AutoNation. She filed a motion in a trial court to have her law-suit certified as a class action. Although AutoNation argued that the arbitration clause in the purchase agreement controlled the case, the trial court certified the class action, ruling that because the installment con-tract had no arbitration agreement, the plaintiffs were free to pursue their remedy in court.
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Legal Environment of Business A Managerial Approach Theory to Practice
ISBN: 978-1259686207
3rd edition
Authors: Sean Melvin, Enrique Guerra Pujol