March 12, 2019 Articles

New Jersey Court Puts Brakes on Arbitration after Car Deals Are Called Off

Because the parties rescinded their purchase agreement, their agreement to arbitrate all disputes is rescinded too.

By Shira Forman

Your new car may be returnable, but are you stuck with the arbitration agreement you signed when you bought it?

This was the question confronted by the Appellate Division of the Superior Court of New Jersey in a recent set of appeals involving car purchases that were rescinded, leaving confusion about the enforceability of the arbitration agreements signed by the buyers and sellers: Goffe v. Foulke Management  Corp., and Robinson v. Mall Chevrolet, Inc., Nos. A-2658-16T4, A-2659-16T4 (N.J. Super. Ct. App. Div. Apr. 24, 2018). 

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