A federal appeals court has declined to enforce an arbitration provision that an Avis subsidiary printed in a different location than the main contract for a rental car.
The U.S. Court of Appeals for the Third Circuit agreed with a judge in the District of New Jersey that contracts reviewed and signed by Payless Car Rental customers did not sufficiently incorporate by reference the language calling for arbitration of disputes. The arbitration language was either printed on the backside of the rental agreement or on a “rental jacket” that was handed to consumers with the contract folded up inside.
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