"The fellow that owns his own home is always just coming out of a hardware store." In reality, sometimes a trip to a hardware store will not nearly be enough to repair a home, such as when the repairs needed can be incredibly immense or numerous. When those situations aruse, homeowners must pursue other options. For homeowners like Alon Drumer and Michelle Berline Frumer, that option is mandatory arbitration. In Frumer v. National Home Insurance Co., the Superior Court of New Jersey, Appellate Division held an arbitration clause as valid when it was included in a home warranty agreement mandating arbitration as the exclusive remedy for resolving major structural defects claims. Other states do not share New Jersey's recent support of arbitration clauses in new home construction contracts and warranties.
Devin Ryan, Betting Against the House: California and Nevada's Stand Against Arbitration Clauses in Home Construction Contracts, 4 277 (2012).