Leroy purchased a used car from AutoNation, a used car dealer chain. All buyers entered into a purchase agreement, and those who financed their vehicles through AutoNation also signed a retail installment contract. The purchase agreement included an arbitration agreement, but the retail installment contract did not. Leroy alleged that she and all other customers who signed installment contracts were overcharged as a result of a computer error committed by AutoNation. She filed a motion in a trial court to have her lawsuit certified as a class action. Although AutoNation
argued that the arbitration clause in the purchase agreement controlled the case, the trial court certified the class action, ruling that because the installment contract had no arbitration agreement, the plaintiffs were free to pursue their remedy in court.

 

CASE QUESTION

Did the trial court rule correctly? Explain.