Unsigned Terms and Conditions found in a preprinted car rental jacket are part of the contract between the parties under Florida, Arizona and Colorado law because they were properly incorporated by reference into the signed rental receipt, the 11th Circuit Court of Appeals ruled Thursday.
The case, Calderone v. Sixt Rent a Car, stems from allegations that Sixt did not follow the Terms and Conditions in its rental jacket when charging renters for auto repairs. Sixt argued the jacket was not part of the rental agreement. A district court agreed and granted Sixt summary judgment.
The 11th Circuit disagreed, and ruled the Terms and Conditions “were incorporated by reference into each contract [including the rental receipt] under the law of each state, and, therefore, the district court erred in granting summary judgment.”
Laws governing incorporation by reference vary by state and are often weaponized by consumer lawyers seeking to avoid contractual obligations (including the duty to arbitrate). Ballard’s Consumer Financial Services team is well versed in the various laws and requirements, and how to address the arguments when they arise.