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IN THREE COURT DECISIONS IN THE PAST SEVERAL MONTHS, two themes emerged: reading the contract before you sign and understanding the law that applies. In the first case, a court needed to decide which of two contracts...more
A recent trend in litigation has emerged that is causing companies to re-think conventional wisdom. Until now, it has been a widely adopted best practice for retailers and other consumer-facing companies to include mandatory...more
Online retailers routinely include arbitration clauses in the terms of service for their website, seeking to send any consumer claims to arbitration and to eliminate a consumer’s right to file a class action lawsuit....more
A state appellate court in California reversed a superior court’s denial of a massage franchisor’s motion to compel arbitration. Jane Doe #1 (I.G.) v. Massage Envy Franchising, LLC, 2023 WL 8801517 (Cal. Ct. App. Dec. 20,...more
The Pennsylvania Superior Court recently invalidated Uber’s use of a mandatory arbitration clause in an online registration page for customers, ruling that the arbitration clause was unenforceable because it did not clearly...more
The global pandemic has brought about countless changes, including, for many households, increased reliance on online retail and delivery services, such as Amazon. When consumers sign up for these services or place their...more
Many online services feature comprehensive terms of use intended to protect their business from various types of risks. While it is often the case that a great deal of thought goes into the creation of those terms, frequently...more
An October 2019 decision in the U.S. District Court for the Northern District of California confirmed that cannabis companies can form contracts even if the purpose of the contract is for an illegal purpose and that...more
A California Court granted Defendant’s motion to compel arbitration based on a duly formed and consented arbitration clause via a “clickwrap” agreement, despite Plaintiff’s argument that no contract was ever formed because...more
The Northern District of Illinois recently denied a motion to compel arbitration in a putative class action, and in doing so found that the defendants failed to show that the plaintiff had agreed to arbitrate the dispute when...more
People around the world create new profiles on websites and apps every day, but many of them do not know the terms and conditions of all their accounts. Many users simply go through the motions of creating accounts without...more
The First Circuit recently held that an arbitration clause contained in the online contract of the ride sharing app, Uber Technologies, Inc., is unenforceable under Massachusetts law. ...more
Executive Summary and Takeaway. User agreements for websites and apps have become increasingly prevalent in recent years, and courts have had to adapt traditional rules of contract interpretation to the new digital frontier....more
Ruling in a class action brought against Uber Technologies, Inc., the U.S. Court of Appeals for the First Circuit recently held that the company's arbitration clause could not be enforced because it was not "reasonably...more
Courts are increasingly taking a magnifying glass to electronic contracting processes, particularly how the presentation of the terms of service and call to action are displayed. As such, companies might take a second look at...more
The Second Circuit issued a decision of interest to every company that utilizes a mobile app to interact with its customers. In Meyer v. Kalanick, the court enforced the mandatory arbitration provision in the Uber app. The...more
On August 17, 2017, the United States Second Circuit Court of Appeals issued a landmark ruling in Meyer v. Kalanick that clarifies the standards for contract formation in the age of smartphones and mobile contracting,...more
Last week, a federal court ruled that mandatory arbitration provisions in lengthy mobile application Terms of Service can be binding, regardless of whether a customer takes the time to read them. This ruling in favor of Uber...more
On July 29, 2016, the Southern District of New York, in Meyer v. Kalanick, refused to enforce mandatory arbitration and jury waiver provisions against a putative class of Uber consumers. In a lengthy and strongly worded...more
Morrison & Foerster’s Sherman Kahn Interviews American Arbitration Association Vice President, Sandra Partridge. Many companies are providing for arbitration of disputes in their terms of service agreements governing...more