Opinion ID: 1741832
Heading Depth: 1
Heading Rank: 1

Heading: Scope of the Arbitration Clause

Text: We disagree with the Dickinsons' contention that the arbitration clause is not broad enough to encompass their claims alleging conversion of the 1983 Buick and wrongful repossession of the 1996 Nissan. The Retail Buyer's Order provided in part: Buyer and Dealer agree that all claims, demands, disputes and controversies of every kind or nature that may arise between them concerning any of the negotiations leading to the sale of the vehicle, the terms and provisions of the sale, the performance or condition of the vehicle, or any other aspects of the vehicle and its sale shall be settled by binding arbitration.... Without limiting the generality of the foregoing, it is the intention of the Buyer and the Dealer to resolve by binding arbitration all disputes between them concerning the vehicle, its sale and its condition, including disputes concerning the terms and conditions of the sale, the condition of the vehicle, any damage to the vehicle, the terms and meaning of any of the documents signed or given in connection with the sale, any representations, promises or omissions made in connection with negotiations for or sale of the vehicle, or any terms, conditions or representations made in connection with the financing, credit life insurance, disability insurance, and vehicle service contract purchased or obtained in connection with the vehicle. (Emphasis added.) The Retail Buyer's Order also contained the following provisions: If the purchase of the vehicle is being financed, Buyer understands that the sale is contingent upon obtaining approval of the financing by the financing agency. In the event that the vehicle has been delivered to Buyer but financing approval is not obtained, Buyer agrees to immediately return the vehicle to the Dealer. For their 1983 Buick, the Dickinsons were credited $2200 on the purchase price of the new car. The value of the Buick represented a portion of the purchase price and was a natural and material aspect of the negotiations leading to the sale of the vehicle, and represented one of the key terms and provisions of the sale. As for the wrongful repossession claim, the Retail Buyer's Order expressly addresses the contingency of financing approval and specifically requires the buyer to immediately return the vehicle to the Dealer in the event the contingency fails. The disputes that have developed in this case are, therefore, precisely the sort of controversies that contracting parties such as these would expect to arise between them in regard to the right to possess and control a trade-in vehicle and in regard to the failure of the financing contingency. We conclude, therefore, that the Dickinsons' claims are within the scope of the arbitration clause in the Retail Buyer's Order.