Kenworth of Birmingham, Inc. v. Langley

Summary

The Supreme Court of Alabama held that the purchase and financing of a used tractor-trailer substantially affected interstate commerce because the buyer obtained credit from an out-of-state corporation that was designated as lienholder and assignee. Accordingly, the Federal Arbitration Act applied, and the court reversed the trial court's denial of the defendants' motion to compel arbitration and remanded for further proceedings.

Holdings

1. The purchase and financing transaction substantially affected interstate commerce because the buyer obtained credit through Green Tree, a Minnesota corporation, and the transaction documents identified Green Tree as the lienholder and assignee.
2. The trial court erred in denying the motion to compel arbitration, and the order was reversed and the case remanded for further proceedings consistent with the opinion.

Questions Presented

1. Whether the purchase and financing of Langley's used tractor-trailer substantially affected interstate commerce so that the Federal Arbitration Act applied.
2. Whether the trial court erred by denying defendants' motion to compel arbitration.

Disposition

reversed_and_remanded