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.

The Source of Alabama's Abundance of Arbitration Cases: Alabama's Bizarre Law of Damages for Mental Anguish

This Article, co-authored with Scott Simpson and Vicki Willard, provides an overview of arbitration litigation in Alabama, including the evolution of mental anguish jurisprudence in contract cases, especially with regard to the automobile and home industries.  It proposes substantive and procedural reforms.