Klocek v. Gateway

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Klocek v. Gateway
Court U.S.D.C., District of Kansas
Citation 104 F. Supp. 2d 1332
Date decided June 15, 2000

Facts

*Mr. Klocek = "Klocek" = buyer of a computer from Gateway in the late 1990s = non-merchant = plaintiff

*Gateway = defendant = merchant

*In 1999, Klocek brought a class-action suit on claims arising from a purchase of the Gateway computer and a HP scanner.


Klocek claims that Gateway induced him and others to purchase the product by making false promises of technical support, and that Gateway breached a warranty that its computer would be compatible with standard peripherals and standard internet services.

*The arbitration clause required the venue to be Chicago, Illinois.

Procedural History

Gateway filed a motion to dismiss the claim based on the standard arbitration clause inserted into every computer box, which gave the customer 5 days to return the product.

Issues

In the sale of goods between a merchant (Gateway) & non-merchant (Klocek), is the buyer's express assent needed for a term to become part of the contract if the seller proposes the term only after the purchase?

Holding

Judge Vratil: Yes; express assent is needed.

Judgment

Gateway's motion denied. Gateway didn't appeal

Reasons

Judge Vratil: The computer is a good. Thus, UCC governs here.

Rule

Section 2-207 of the Uniform Commercial Code (UCC) = “battle of the forms”

Resources


Issues

Whether an arbitration clause is enforceable after an agreement has been reached by placing the terms on paper included in the box of the product, and allowing the buyer 5 days to return the product should they disagree with the terms.


Holding/Decision

Motion to dismiss denied.


Reasoning

Kansas law is used and not the reasoning in Hill v. Gateway 2000 and ProCD v. Zeidenberg. Only if Gateway expressly had made its acceptance conditional on plaintiff’s assent to conditional terms could the arbitration clause be enforces; the act of keeping the computer past five days was not sufficient to demonstrate that the plaintiff had expressly agreed to the Standard Terms.