How Cavco Industries Uses This Clause
Arbitration provisions in Cavco Industries manufactured home purchase agreements may include class action waiver language that prevents buyers from joining together in class action litigation over common construction quality issues, requiring each buyer to pursue claims individually through arbitration.
Class action waivers are particularly significant in the manufactured housing context because systemic quality issues affecting a production run or model line could impact many buyers. Without the ability to join together in class action litigation, individual buyers must bear the full cost of arbitration proceedings.
The enforceability of class action waivers varies by state. California courts, for example, scrutinize these provisions more closely than courts in most other states where Cavco Industries operates.
Builder-Specific Details
Factory Production Context
Because manufactured homes are built in factory settings, defects in a particular production run could affect multiple units. A class action waiver prevents affected buyers from pursuing claims collectively.
Multi-Brand Operations
Cavco Industries operates through multiple subsidiary brands. Class action waiver terms may vary between brands and their respective dealer networks.
Standard Form Contract
This clause typically appears in Cavco Industries' standard purchase agreement, which is generally presented on a take-it-or-leave-it basis.
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Cavco Industries's operating states.
| State | Status | Note |
|---|---|---|
| Arizona | Likely Enforceable | Class action waivers in arbitration agreements are generally enforceable in Arizona following federal precedent. |
| Texas | Likely Enforceable | Class action waivers in arbitration agreements are generally enforceable in Texas. |
| Florida | Likely Enforceable | Class action waivers in arbitration agreements are generally enforceable in Florida. |
| California | Uncertain | California courts may scrutinize class action waivers in consumer arbitration agreements more closely. Provisions deemed unconscionable may be unenforceable. |
| Oregon | Likely Enforceable | Class action waivers in arbitration agreements are generally enforceable in Oregon. |
| Idaho | Likely Enforceable | Class action waivers in arbitration agreements are generally enforceable in Idaho. |
| Indiana | Likely Enforceable | Class action waivers in arbitration agreements are generally enforceable in Indiana. |
| Virginia | Likely Enforceable | Class action waivers in arbitration agreements are generally enforceable in Virginia. |
Related Clauses in Cavco Industries Contracts
This clause often works in combination with other provisions in Cavco Industries's purchase agreements.
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Buyers cannot join together to challenge deposit forfeiture practices through class action litigation.
Systemic warranty issues affecting multiple homes cannot be pursued as a class action.
What Buyers Can Do
- Understand the practical impact of the class action waiver. Without the ability to join a class action, you must bear the full cost of individual arbitration. For smaller claims, this may make pursuing a dispute economically impractical.
- Research whether other buyers have reported similar issues. Consumer complaint databases and online forums may reveal whether defects in your home are part of a broader pattern affecting other Cavco Industries buyers.
- Have the full contract scanned before signing. The class action waiver typically works in conjunction with the mandatory arbitration clause. A contract scan can identify all interconnected provisions that limit buyer remedies.