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The Indiana Court of Appeals held that the Indiana Uniform Arbitration Act's exemption for consumer contracts does not have the effect of invalidating consumer arbitration agreements.
In Novotny v. Renewal By Anderson Corp., No. 49A05-0602-CV-93, 2007 WL 330065 (Ind. Ct. App. Feb. 6, 2007), Novotny sued Anderson, alleging several causes of action arising from Novotny's purchase of sliding glass doors.
The purchase agreement and financing agreement both contained written agreements to arbitrate. However, Novotny argued that she should not be compelled to arbitrate the dispute because the Indiana Uniform Arbitration Act (IUAA) specifically exempts consumer leases, sales and loan contracts from its coverage. See Ind. Code § 34-57-2-1(a).
In rejecting this argument, the Court cited Indiana's policy favoring arbitration. Although the contracts between Novotny and Anderson were not subject to the IUAA, the exemption did not restrict parties from entering into the arbitration agreement and did not operate to invalidate the otherwise valid arbitration agreements.
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