McBurnie v. RAC Acceptance East, LLC

Court: U.S. Court of Appeals for the Fourth Circuit

Date: 3/13/2023

Issue on Appeal: Whether rent-to-own agreements fall within the scope of the Federal Arbitration Act and whether such agreements are exempt as “contracts of employment” involving transportation workers engaged in interstate commerce.

RLC’s Position: The RLC argues that the Federal Arbitration Act should be interpreted consistently with its text and purpose, and that exemptions to arbitration—such as the transportation worker exemption—should be applied narrowly. Expanding exemptions beyond their intended scope would undermine arbitration agreements widely used by retailers and consumer-facing businesses, increasing litigation costs and reducing the efficiency of dispute resolution.

Other Amici: Chamber of Commerce of the United States and other business advocacy organizations.

Counsel: Counsel from national appellate and arbitration practices representing amici curiae.