California Legal Brief

The Rule of Phillips v. Volvo Penta of the Americas, LLC is that under the Song-Beverly Consumer Warranty Act, a component manufacturer's duty to replace goods or reimburse the buyer is limited to the goods the manufacturer itself sold and warranted, not to the entire consumer product incorporating the component, under circumstances where the component manufacturer issued an express warranty only for its component part.

The Rule of David Kostandian v. American Honda Motor Co., Inc., et al. is that a party moving to compel arbitration meets its initial burden by presenting a copy of the arbitration agreement and stating its terms verbatim, without needing to prove the agreement's validity or provide evidentiary support for corporate business names, under circumstances where the opposing party fails to dispute the agreement's existence.

The Rule of Diaz v. Thor Motor Coach is that forum selection clauses in motorhome warranties are unenforceable as unconscionable when they are part of warranty agreements containing other illegal provisions that violate California's Song-Beverly Consumer Warranty Act, even when the manufacturer offers to stipulate not to enforce the illegal provisions in the out-of-state forum.