Law for Business 12th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 1

Falbe bought a computer from Dell over the phone. When he received it, it came with Dell's standard "Terms and Conditions of Sale" form. It said: "Please read this document carefully. It contains very important information about your rights and obligations, as well as limitations and exclusions that may apply to you. This document contains a dispute resolution clause.... This Agreement contains the terms and conditions that apply to purchases.... By accepting delivery of the computer.... Customer agrees to be bound by and accepts these terms and conditions." It also contained the return policy, which stated that the computer could be returned in 30 days from the date of invoice, and an arbitration clause. Several months later Falbe sued Dell for fraud, claiming it misrepresented the procedure for obtaining a $200 rebate. Dell argued that the dispute had to be arbitrated. Who will prevail? Why?