Krol v. FCA US, LLC
Resolving certified conflict, the Florida Supreme Court held that the FTC's "single document rule" (16 C.F.R. § 701.3) promulgated under the Magnuson-Moss Warranty Act does not require a warrantor to disclose a binding arbitration agreement within the warranty document. The Court approved the Fifth District's decision enforcing an arbitration clause contained in a separate retail purchase order and disapproved the Third District's contrary decision in Larrain v. Bengal Motor Co.
Key facts
- Krol purchased a vehicle from FCA US, LLC with an express written warranty; the purchase order contained a binding arbitration agreement in a separate document from the warranty.
- Krol brought a dispute related to the vehicle, and FCA sought to enforce the arbitration clause; the trial court and Fifth District Court of Appeal enforced the arbitration agreement.
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Why it matters
This decision removes a significant Florida-law obstacle to enforcing arbitration clauses in consumer-product sales where an express written warranty is involved, expressly disapproving Larrain and declining to follow… — full analysis with a trial
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