Arbitration – Sale of Used Automobile

Valerio’s Auto Sales, Inc. v. Flowers, [Ms. 1210295, Oct. 21, 2022] __ So. 3d __ (Ala. 2022). The Court (Mitchell, J.; Parker, C.J., and Shaw, Bryan, and Mendheim, JJ., concur) reverses the Montgomery Circuit Court’s order denying Valerio’s Auto Sales, Inc.’s motion to compel arbitration in an action filed by Audriana Flowers claiming that Valerio’s wrongfully attempted to repossess a used vehicle it had sold her. The circuit court denied the motion to compel arbitration the day it was filed without stating a rationale. Ms. *4.

Quoting Edwards v. Costner, 979 So. 2d 757, 762 (Ala. 2007), the Court reiterates that “‘[i]It is unquestionable that the sale of an automobile, either new or used, use[s] the channels of interstate commerce, involve[s] ... things in interstate commerce, and involve[s] general activities having a substantial effect on interstate commerce.’” Ms. **5-6. The Court accordingly concludes the circuit court erred in denying the motion to compel arbitration. Ms. *8.

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