Contracts Keyed to Murphy
Hill v. Gateway 2000, Inc.
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
This facts of this case consider the situation of terms-in-the-box contracts. Mr. and Mrs. Hill ordered a Gateway 2000 computer system. When they received this computer system, along with the packet of warrantees was an arbitration agreement, which precluded Plaintiffs from bringing any action against Defendant, other than in the forum of arbitration. Plaintiffs filed suit in federal court, arguing that the problems with their computer amounted to racketeering, which allowed them federal question jurisdiction under RICO. Defendant answered with a Motion to Compel Arbitration, based on the in-the-box agreement. The District Court allowed the Plaintiffs to bring suit, noting the record was insufficient to support a finding that an arbitration agreement existed. Gateway appealed.
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