I'm not an attorney but those who are can maybe spread some hypothetical light on the nuances and implications of court decision regarding class action lawsuits and arbitration.
I know there are decisions limiting, or possibly eliminating, class action arbitration, but I have no idea how these to apply other than to say that class action arbitration seems to highly improbable. However, I believe there is a fraud exception in Federal Arbitration Act (FAA). Also, how does individual state law apply?
In any case, what if fraud can be demonstrated? Fraud can be as simple as misrepresenting facts. Since the escalated price of a Tesla Solar Roof effects the cost benefit ratio of any financial or energy recovery could a fraud exception apply? The hard part maybe in computing damages and applying the benefit-of-the-bargain rule because what are and how much are the out of pocket losses?
Finally, how does individual state law apply? I read where Pennsylvania’s consumer protection act restricts the use of arbitration clauses when “any deceptive conduct that creates a likelihood of confusion or misunderstanding for a consumer is actionable under the provision, regardless of whether such conduct is committed intentionally (as in a fraudulent misrepresentation), carelessly (as in a negligent misrepresentation), or with the utmost care (as in strict liability).”
Consumer Protection Law Ruling Could Spell Big Trouble for Pa. Businesses | The Legal Intelligencer
Here in New Jersey the court stated the 'possible' need for a detailed language in an arbitration clause as a “detailed description of the contemplated arbitration in an arbitration agreement enhances the clarity of the agreement.” Which may hold Tesla more accountable to the language they use. The Tesla Solar Roof arbitration clause I read only mentions small claims, which is limited to claims of $3000.00 or less. Amounts greater than $3000.00 but less than $15,000 must be field in the Special Civil Part-Civil unit of the New Jersey Superior Court.
Any thoughts?