Timeshare Resort Can Send False Ad Claims to Arbitration

A vacation timeshare operator may keep a class action alleging oppressive sales tactics out of court, a California appeals court ruled March 27.

The customers didn’t show that the arbitration clause was “so overly harsh, unduly oppressive, or unfairly one-sided that it constitutes a substantively unconscionable term,” Judge Terry B. O’Rourke wrote for the California Court of Appeal, Fourth District.

The court reversed a lower court’s decision that the clause in Welk Resort Group Inc.'s sales contract was unenforceable.

The panel issued another decision March 27 upholding a lower court’s denial of arbitration of a similar case by Welk timeshare ...