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

Exercise 2

Wong signed a cell phone contract with T-Mobile. It contained an arbitration clause and a waiver of class action suits. He later filed a class action suit against T-Mobile alleging that the company overcharged for services in violation of the Michigan Consumer Protection Act. Wong's damages were $19.74. However, when other T-Mobile users are included, the alleged amount that was improperly collected could be millions. T-Mobile asked the court to compel arbitration and not allow a class action because of the contract clause. Must Wong arbitrate his claim and thus be barred from bringing a class action?