District Court in Texas Rejects Online Terms of Service as Illusory and Unenforceable

Contributor: Morrison & Foerster LLP

SUMMARY: On April 15, 2009, a Texas federal district court held that an arbitration provision in Blockbuster’s online terms of service was “illusory” and unenforceable because Blockbuster had reserved the right to change the terms of service at any time. Harris v. Blockbuster Inc., No. 3:09-cv-217-M (N.D. Tex. April 15, 2009). If followed by other courts, the Harris decision could have significant implications not only for website operators, but also for any company that wishes to retain the right to modify its standard terms for existing customers.

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DOCUMENT INFO

Doc Type:
Legal Article/Newsletter

Published: 5/5/2009

Legal Article/Newsletter Name:
District Court in Texas Rejects Online Terms of Service as Illusory and Unenforceable

Legal System: United States

Subject Matter:
Commercial Law & Contracts
Alternative Dispute Resolution (ADR)
Science, Computers, & Technology