Krol v. FCA US, LLCAnnotate this Case
The Supreme Court held that the Federal Trade Commission's "single document rule," promulgated under the Magnuson-Moss Warranty Act, 15 U.S.C. 2301-2312, does not require the disclosure of a binding arbitration agreement.
Petitioner bought a truck from Respondent. The parties' retail purchase order included a binding arbitration agreement for any dispute related to the truck's purchase. Petitioner eventually filed suit under the Act, and Respondent successfully moved to compel arbitration. Petitioner appealed, arguing that the arbitration agreement was unenforceable because it was not disclosed in a single document with other warranty terms, in violation of the Federal Trade Commission's (FTC) single document rule. The Fifth District affirmed, holding that a binding arbitration agreement is not an item covered by the single document rule's disclosure requirements. The Supreme Court approved the Fifth District's decision, holding that the existence of a binding arbitration agreement is not among the disclosures required by the FTC's single document rule.