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Below is an essay on "Business Law" from Anti Essays, your source for research papers, essays, and term paper examples.

Thomas Baker and others who bought new homes from Osborne Development Corp.
sued for multiple defects in the houses they purchased. When Osborne sold the homes,
it paid for them to be in a new home warranty program administered by Home Buyers
Warranty (HBW). When the company enrolled a home with HBW, Osborne paid a fee
and filled out a form that stated the following: “By signing below, you acknowledge that
BINDING ARBITRATION PROVISION contained therein. ¨ HBW then issued warranty
booklets to the new homeowners that stated: “Any and all claims disputes and
controversies by or between the Homeowner, the Builder, the Warrant Insurer and/or
HBW shall be submitted to arbitration.¨
Would the new homeowners be bound by the arbitration agreement, or could they sue
the builder, Osborne, in court? (Baker v Osborne Development Corp., 159 Cal.App.4th
884,71 Cal.Rptr.3d 854 (2008)

The arbitration agreement was not binding on the homeowners, so they could sue the builder, Osborne in court. The builder signed the contract with HBW, not the homeowners. That’s why I believe the arbitration agreement is not binding for the homeowners. “The appeals court held the arbitration agreement to be “oppression” against the homeowners.   As such, the agreements were one-sided and unconscionable. The homeowners were handed the warranty agreement at the time of closing (final sale) on their houses, but they did not know the terms of the warranty and had no chance to bargain over it. They did not give up their right to sue Osborne for breach of contract and other claims.”

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"Business Law". Anti Essays. 10 Dec. 2018


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Business Law. Anti Essays. Retrieved December 10, 2018, from the World Wide Web: http://parimatchstavki7.com/free-essays/Business-Law-507501.html