[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1519 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1519

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.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 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.

SEC. 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.
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