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Read The Fine Print - Alabama Supreme Court Rules That Binding Arbitration Provisions In Written Warranties Are Okay - Southern Energy Homes, Inc. V. Ard, Garrett S. Taylor

Journal of Dispute Resolution

When a consumer purchases an item that includes a warranty, they generally do not read the warranty, and a consumer expects that they will have a right to a judicial forum should the warranty come into play. However, courts have recently faced the issue of whether or not binding arbitration provisions in written warranties preclude the consumer from appearing in a courtroom. The Supreme Court of Alabama, in Southern Energy Homes, Inc. v. Ard, held that inclusion of binding arbitration provisions in written warranties is acceptable, despite the intent of the MagnusonMoss Act.'