Page 40 - GIADA-Dec 2017-Final

THE CARLAWYER ©

Continued from page 36 was valid and enforceable. The buyers agreement applied to all the buyers’ claims.
a retail installment contract, and a delivery argued that financing approval was a
receipt. The buyers order included an condition precedent to the existence of a Hefter v. Charlie, Inc., 2017 U.S. Dist. LEXIS
arbitration provision and a spot delivery binding contract. The buyers claimed that 151764 (N.D. Ala. September 19, 2017)
disclosure. The RIC stated that any dispute because Serra Hyundai did not sell the
resolution agreement the buyers signed RIC, the agreement between the buyers and So, there’s this month’s roundup! Stay legal,
along with the RIC also applied to the RIC. Serra Hyundai, including the arbitration and we’ll see you next month. n
The delivery receipt included a spot delivery provision, was void.
disclosure and stated that it was a part of the Tom (thudson@hudco.com) is Of Counsel
buyers order and the RIC. The court disagreed for two reasons. First, and Nikki (nmunro@hudco.com) is a Partner
the court explained that, under the Federal in the law firm of Hudson Cook, LLP.
Serra Hyundai could not sell the contract Arbitration Act, an arbitration agreement Tom has written several books and is the
and asked the buyers to return the car. The is severable from the rest of a contract. publisher of Spot Delivery®, a monthly legal
buyers sued Serra Hyundai for violating the As a result, even if the rest of the contract newsletter for auto dealers. He is the CEO of
Truth in Lending Act and the Equal Credit was void, the arbitration provision would CounselorLibrary.com, LLC and the Editor in
Opportunity Act, and asserted several state be enforceable because the buyers did not Chief of CARLAW®, a monthly report of legal
law claims. The buyers asked the court to challenge it. Second, the court noted that the developments for the auto finance and leasing
rule that the contract between the buyers arbitration provision was part of the buyers industry. Nikki is a contributing author to the
and Serra Hyundai entitled the buyers to order. By its terms, the buyers order and the F&I Legal Desk Book and frequently writes
keep the car. arbitration provision took effect when Serra for Spot Delivery. For information, visit www.
Hyundai delivered the car to the buyers counselorlibrary.com. © CounselorLibrary.
Serra Hyundai moved to compel arbitration. along with the TILA disclosures. Because the com 2017, all rights reserved. Single
The court granted Serra Hyundai’s motion, RIC and the delivery receipt incorporated publication rights only, to the Association.
concluding that the arbitration provision the arbitration provision, the arbitration (11/17). HC/4815-6992-3155

we are. counselorlibrary.com

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38 | GIADA Independent Auto Dealer DECEMBER 2017