Carvana Can’t Compel Two Pennsylvania Car Buyers to Arbitration

Carvana LLC failed to include an arbitration agreement into the overarching sale contract for two Pennsylvania car purchasers, so the Third Circuit said it can’t compel them to arbitrate under Pennsylvania law.

Dana Jennings and Joseph Furlong allege that Carvana breached a contractual promise to properly license, title, and register their vehicles. The used car dealer moved to compel arbitration but the lower court said the agreement wasn’t enforceable under the Pennsylvania Motor Vehicle Sales Finance Act, according to the unpublished opinion from the US Court of Appeals for the Third Circuit.

“The statute creates a one-document rule for the ...