Managers and the Legal Environment 7th Edition by David Madsen, Constance Bagley

Exercise 8

Carole Van Tassell made online purchases of products from ChefsCatalog.com, a website owned by Pikes Peak. After the purchase, Pikes Peak transmitted her credit and debit card information to United Marketing without her knowledge or consent. United Marketing used her information to enroll her in a negative-option membership program, resulting in charges of $14.95 per month until she finally discovered the charges and called to cancel membership in the program. When Van Tassell sued for consumer fraud, Pikes Peak sought to compel arbitration, claiming that Van Tassell had agreed to the arbitration clause in the Conditions of Use on the ChefsCatalog.com website when she made her purchase. Van Tassell argued that she was not bound by the Conditions of Use because they were not sufficiently conspicuous to provide the notice necessary for formation of an enforceable browse-wrap agreement. Although the Conditions of Use were hyperlinked on the ChefsCatalog.com website under the "Consumer Service" link, they were not hyperlinked on the checkout page. Is Van Tassell required to arbitrate her claims? [Van Tassell v. United Marketing Group, LLC, 2011 U.S. Dist. LEXIS 72088 (N.D. Ill. July 5, 2011.]