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National Law Review
National Law Review
6/18/2026
Toyota wins arbitration motion in

Toyota wins arbitration motion in

Original: TOYOTA WINS MOTION TO COMPEL ARBITRATION- Court Holds Dealer Need Not Be Named Individually Where Agreement Expressly Grants Rights to ‘Participating Dealers’ as Third-Party Beneficiaries

Short summary

Massachusetts court upholds Toyota's motion to compel arbitration in TCPA case, finding the company was an intended third-party beneficiary under TrueCar's lead-generator agreement. The ruling emphasizes explicit contractual language granting third-party enforcement rights and validates clickwrap Terms of Service as providing adequate notice. Arbitration enforcement depends on clear identification of protected parties or categories in the original agreement.

  • Massachusetts court enforced lead-generator arbitration clause against consumer despite plaintiff never signing agreement with Toyota directly
  • Third-party beneficiary status requires explicit contractual language identifying protected parties or categories—Toyota's absence by name was immaterial
  • Clickwrap agreements with prominent hyperlinked Terms of Service and affirmative checkbox consent constitute valid online contracts

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