Hyundai Drops Arbitration Clause

Auto Manufacturer Hyundai Drops Arbitration Clause For Warranty Disputes.


The New York Times reports that, soon after its earlier story about the arbitration clause in a supplement to the car owners' handbooks, Hyundai said it would not use this arbitration clause.   The clause required arbitration of some warranty disputes unless car owners notified Hyundai, within 90 days of purchasing the vehicle, of their decision to opt out of the arrangement.

The Times article quotes two of the leading opponents of what they and many others call "mandatory" consumer arbitration, Paul Bland of Public Justice and UNLV Law Prof. Jean Sternlight.  My more favorable views on arbitration clauses in consumer form contracts are here.