A coalition of about 70 consumer and justice groups have sent a letter to South Carolina Attorney General Henry McMaster asking him to investigate home warranties they think violate state law.
Fair Arbitration Now says builders often give homeowners a warranty as a gift, but the agreements often exclude large classes of defects and force the homeowners into arbitration if they have a dispute.
The group says the practice violates a part of state law that prohibits forced arbitration in insurance contracts. The organization has also sent letters to officials in 16 other states.
National Association of Home Builders legal affairs vice president David Jaffe says the warranties are voluntary and arbitration saves money and time over lawsuits.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Nancy says: 
Cindy says: 
Mine Safety Chief Seeks to End Complacency Over Safety
Virginia Court Grants Rehearing of Global Warming Claims Case
Woman Takes Honda to Small-Claims, Wins Big
Federal Insurance Office Says Overdue Regulation Report Still Weeks Away
Judge Allows South Carolina Company’s Twitter Lawsuit Against Employee
Super (Insurance) Coverage for the Super Bowl
Study: California Workplace Safety Program Only Superficially Enforced
Court Delays Ruling On Honda Hybrid Suit
