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Contracts Keyed to Burton
Brower v. Gateway 2000, Inc.
Citation:246 A.D.2d 246, 676 N.Y.S. 2d 569
Brower (plaintiff) was one of many customers who purchased computer and software products from Gateway 2000, Inc. (hereinafter “Gateway”) (defendant) through mail or telephone order. The Gateway products arrived with a copy of the company’s Standard Terms and Conditions. Gateway’s Standard Terms specified that the customer accepted the terms by keeping the product beyond thirty days after the date of delivery. The Standard Terms also specified that any legal dispute would be settled in arbitration. In order to arbitrate, a customer would have to pay an advance fee of $4,000 to the International Chamber of Commerce, $2,000 of which was nonrefundable even if the customer prevailed in arbitration. Brower later sued Gateway for deceptive sales practices.
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