Anderson's Business Law and the Legal Environment 20th Edition by David Twomey,Marianne Jennings

Exercise 10

John purchased a computer from Gateway, Inc. He noted upon starting it up that he had to agree to a number of provisions in the contract of purchase in order to continue his initial installation. The program indicated that if he did not wish to agree to the terms, he could return the computer to Gateway at Gateway's expense. One of the provisions requires that any disputes arising under the agreement be submitted to binding arbitration. John wonders if such a clause is valid. "What if I have statutory rights and protections in court?" Advise John on his rights under the Gateway agreement.