110 HR 1519 IH: American Homebuyers Protection U.S. House of Representatives 2007-03-14 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 1519 IN THE HOUSE OF REPRESENTATIVES March 14, 2007 Mr. Gonzalez introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To prohibit offering homebuilding purchase contracts that contain in a single document both a mandatory arbitration agreement and other contract provisions, to prohibit requiring purchasers to consent to a mandatory arbitration agreement as a condition precedent to entering into a homebuilding purchase contract, and to provide for the Federal Trade Commission to enforce violations of such prohibitions as unfair and deceptive acts or practices under the Federal Trade Commission Act.

1.

Short title

This Act may be cited as the American Homebuyers Protection Act.

2.

Mandatory arbitration agreements

(a)

In General

No person engaged in the construction of new houses may require a purchaser to enter into a mandatory arbitration agreement as a condition precedent to entering into a contract for the purchase of a new house. (b)

Separate Documents Required

No person engaged in the construction of new houses may offer a purchaser a contract for the purchase of a new house which includes an agreement on mandatory arbitration unless such agreement is a separate document which contains only language pertaining to the mandatory arbitration agreement. The separate document containing the mandatory arbitration agreement shall also contain the following statement: By Agreeing to Binding Arbitration You Are Giving Up Your Right To Go To Court. (c)

Arbitrator

The mandatory arbitration agreement shall not name an independent arbitrator and shall contain a procedure that adequately guarantees the purchaser an opportunity to participate in the selection of an arbitrator which shall occur only after a dispute regarding the homebuilding contract has arisen. (d)

Enforcement

In the case of any violation of subsection (a), (b), or (c), the agreement on mandatory arbitration involved in the violation shall be of no force or effect.

3.

Enforcement by Federal Trade Commission

(a)

Unfair or deceptive acts or practices

A violation of subsection (a), (b), or (c) of section 2 shall be treated as an unfair and deceptive act or practice in violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices. (b)

Powers of Commission

The Commission shall enforce this Act in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act. Any person who violates such regulations shall be subject to the penalties and entitled to the privileges and immunities provided in that Act.