How Cavco Industries Uses This Clause
Cavco Industries purchase agreements and warranty documents may contain mandatory binding arbitration provisions that require buyers to resolve disputes outside of court. Because manufactured and modular homes are sold through both company-owned retail locations and independent dealers, the specific arbitration terms may vary by point of sale. Buyers who sign arbitration provisions may waive their right to a jury trial and to participate in class action lawsuits.
This provision typically appears within the purchase agreement or warranty documentation alongside other terms that may limit buyer remedies. Because Cavco Industries operates through multiple subsidiary brands across approximately 20 states, the enforceability and practical impact of this clause varies depending on where the home is located and which subsidiary or dealer is involved.
Manufactured home purchase agreements may involve multiple parties (manufacturer, dealer, installer), and arbitration provisions may apply to disputes with some or all of these parties. Buyers should clarify the scope of any arbitration clause.
Builder-Specific Details
Multiple Subsidiary Brands
Cavco Industries operates through Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Nationwide Homes, and Chariot Eagle. Arbitration terms may vary between subsidiary brands and their respective dealer networks.
Dealer Network Distribution
Because Cavco Industries sells through independent dealer networks as well as company-owned retail, the specific contract terms including arbitration provisions may differ depending on the point of sale.
Manufactured Housing Regulatory Context
Disputes involving HUD-code manufactured homes may involve federal regulatory considerations in addition to state arbitration law. The HUD Manufactured Home Dispute Resolution Program may provide an alternative pathway for certain types of disputes.
Legal History
The following cases involve Cavco Industries's use of this clause type.
United States v. Daniel Urness
The DOJ filed fraud charges against former Cavco Industries CEO Daniel Urness following an SEC investigation. While not directly related to arbitration, this case reflects governance concerns that may affect buyer confidence in the company's dispute resolution practices.
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 | Mandatory arbitration clauses in Arizona manufactured home contracts are likely enforceable. Arizona courts generally uphold arbitration agreements but may scrutinize unconscionable terms in adhesion contracts. |
| Texas | Likely Enforceable | Mandatory arbitration clauses in Texas manufactured home contracts are likely enforceable under the Texas Arbitration Act and the Federal Arbitration Act. |
| Florida | Likely Enforceable | Mandatory arbitration clauses in Florida manufactured home contracts are likely enforceable under the Florida Arbitration Code. However, Florida courts have invalidated unconscionable provisions in manufactured home contracts. |
| California | Uncertain | California courts scrutinize arbitration clauses in consumer contracts more closely than many other states. Class action waivers in consumer arbitration agreements face particular scrutiny. Unconscionable provisions may be unenforceable. |
| Oregon | Likely Enforceable | Mandatory arbitration clauses in Oregon manufactured home contracts are likely enforceable under Oregon's Uniform Arbitration Act, though courts may invalidate unconscionable provisions. |
| Idaho | Likely Enforceable | Mandatory arbitration clauses in Idaho manufactured home contracts are likely enforceable under the Idaho Uniform Arbitration Act. |
| Indiana | Likely Enforceable | Mandatory arbitration clauses in Indiana manufactured home contracts are likely enforceable under the Indiana Uniform Arbitration Act. |
| Virginia | Likely Enforceable | Mandatory arbitration clauses in Virginia manufactured home contracts are likely enforceable under the Virginia Uniform Arbitration Act. |
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.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
Warranty disputes must be resolved through arbitration rather than court, potentially limiting the buyer's ability to challenge warranty exclusions.
What Buyers Can Do
- Clarify the scope of the arbitration clause. Determine whether the arbitration provision applies to disputes with the manufacturer (Cavco Industries), the dealer, the installer, or all parties. The scope affects your options if a dispute arises.
- Understand the arbitration process before signing. Review which arbitration provider is specified, who selects the arbitrator, and whether you have any right to appeal. These details significantly affect the fairness of the process.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Cavco Industries contracts that collectively limit buyer remedies. A contract scan can identify all of them.