MT311-02_Unit 2_Case Analysis_Marjorie Bowden

MT311-02_Unit 2_Case Analysis_Marjorie Bowden - Baker vs....

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Baker vs. Osborne Development Corp. Page 1 of 3 Baker v Osborne Development Corp.: Arbitration Agreement Marjorie Bowden MT311-02
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Baker vs. Osborne Development Corp. Page 2 of 3 Osborne Development Corp. (ODC) enrolled the newly constructed homes into a home warranty program through Home Buyers Warranty (HBW) upon selling the homes. ODC paid all fees and completed the required forms for HBW, as well as signing the arbitration clause with HWB. After the purchase of the homes the new homeowners were issued a warranty booklet by HBW which contained an arbitration clause. Arbitration is defined as the settling of a dispute by submitting it to a disinterested third party, who renders a decision that is legally binding. Arbitration clause is defined as a clause in a contract that provides, in the event of a dispute, the parties will submit the dispute to an arbitrator rather than litigate the dispute in court. The homeowners did not agree to the arbitration clause, and was only made aware of the
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MT311-02_Unit 2_Case Analysis_Marjorie Bowden - Baker vs....

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