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Paper Topic:

Legal case review

Baker v . Osborne Legal Review

Thomas Baker and others bought new homes from Osborne Development Corp The new homeowners later d a complaint against Osborne Development Corp . for multiple construction defects in the houses they purchased The complaint alleged causes of action for strict liability , and other breaches of contract , and negligence . Baker and the other homeowners had along with the home purchases signed a builder application form containing the following language : CONSENT TO THE TERMS OF THESE DOCUMENTS INCLUDING THE BINDING ARBITRATION PROVISION contained therein ' By signing the application , the

homeowners were presumed to have agreed to the terms of the warranty (Baker v . Osborne Development Corp , 2008

The question posed is whether the new homeowners are bound by the arbitration agreement they signed , or whether they could just sue Osborne Development Corp . in court . The Fourth Appellate District of the California Court of Appeal answered both questions in its 2008 decision when it held that arbitration provisions in the HBW 2-10 warranty were unenforceable ' because they were unconscionable ' The warranty was unconscionable because the arbitration language was broad and did not clearly and unmistakably ' reserve the sole authority to decide whether the arbitration provision was enforceable to the arbitrator . The arbitration provision was procedurally unconscionable because it was hidden in a booklet not available when Baker executed the warranty application . It was substantively unconscionable because it was solely intended to benefit Osborne , as Osborne would have no reason to sue Baker after the close of escrow

In NCR...

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