Hill v. Gateway

105 F.3d 1147 (1997)

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Nature of the Case

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Facts

Hill (P) purchased a Gateway (D) computer. They ordered the computer over the phone, and the order taker did not read or acquaint them with the terms and conditions of the sale. The box arrived containing the computer, and a list of terms said to govern the transaction unless the computer was returned. One of the terms in the box containing a Gateway 2000 system was an arbitration clause. P kept the unit for over 30 days. They eventually filed suit in federal court arguing that the product shortcomings made D a racketeer (under mail and wire fraud) leading to treble damages under RICO for P and the other members of the class. D wanted the district court to enforce the arbitration agreement. It refused; the present record was insufficient to make that part of the contract, and there was no evidence P was given adequate notice of the term.