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Contracts Keyed to Farnsworth
Klocek v. Gateway, Inc.
Citation:
104 F. Supp. 2d 1332 (D. Kan. 2000)
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
William Klocek purchased a Gateway computer, claiming he bought it in person at a Gateway store in Kansas, while Gateway claimed it shipped the computer to him. Gateway included its Standard Terms and Conditions in the computer box, which contained an arbitration clause requiring all disputes to be settled by arbitration in Chicago. The Standard Terms stated that by keeping the computer beyond five days after delivery, the customer accepted these terms. When Klocek later sued Gateway for breach of warranty regarding the computer’s compatibility with standard peripherals and internet services, Gateway moved to dismiss based on the arbitration clause. The court had to determine whether the Standard Terms, which were not explicitly agreed to at the time of purchase but were included with the product, became part of the contract between Klocek and Gateway.
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