Hyundai strips arbitration clause from warranty – 12/9/13

The Center for Auto Safety is the nation’s premier independent, member driven, non-profit consumer advocacy organization dedicated to improving vehicle safety, quality, and fuel economy on behalf of all drivers, passengers, and pedestrians.

by Ryan Beene

LOS ANGELES — Hyundai Motor America has dropped a policy requiring that some warranty coverage disputes between customers and the factory be settled through arbitration.

Until Friday, Hyundai included the clause in its new-vehicle warranty contract, which also gave customers the ability to opt out of the arbitration clause within 90 days of a new-vehicle purchase.

A report about the arbitration clause appeared in The New York Times on Friday. Shortly after the article was published, Hyundai issued a statement saying the policy would be dropped.

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