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Fact Pattern 18-2 Alpha, Inc., a computer maker, provides a limited warranty on its computers in a contract that includes an informal dispute settlement procedure
Fact Pattern 18-2 Alpha, Inc., a computer maker, provides a limited warranty on its computers in a contract that includes an "informal dispute settlement procedure" clause. Ben buys an Alpha computer, which soon malfunctions. After several unsuccessful repair attempts, Ben files a suit against Alpha, seeking damages under the Magnuson-Moss Warranty Act. 46. Refer to Fact Pattern 18-2. Suppose that the dispute-resolution clause in Alpha's contract calls for binding arbitration. A court is most likely to order a. Alpha to give Ben a new computer. b. Ben to accept the situation because of the limited warranty. c. the case to proceed immediately to trial. d. the parties to arbitrate the dispute. Fact Pattern 18-3 Earl buys a car under warranty from Fine Auto Sales, Inc., in a state that has a lemon law. General Vehicles Corporation (GVC) made the car. Its transmission does not function properly, a defect that significantly affects its use and value. 47. Refer to Fact Pattern 18-3. If Earl submits his complaint to an arbitration program, any decision by the arbitrator is binding on a. Earl only. b. GVC only. c. Earl and GVC. d. none of the above
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