• Home   /  
  • Archive by category "1"

Gateway Inc Case Study

View this case and other resources at:

Citation.22 Ill.105 F.3d 1147, 2 ILRD 695 (7th Cir. 1997)

Brief Fact Summary. Plaintiff Hill, purchased a computer from Defendant, Gateway 2000, Inc. Included in the box with the computer was a list of terms. The list of terms included a provision requiring that disputes be resolved exclusively through final and binding arbitration.

Synopsis of Rule of Law. Additional terms included in a box shipped by the seller do become part of the contract between the parties, even if the purchaser is unaware of the additional terms and the purchaser’s acceptance of the terms is by not returning the item purchased.


Facts. Plaintiff purchased a computer from Defendant by placing an order over the phone. Defendant included a list of terms that become part of the contract if the purchaser does not return the computer within thirty days. The terms were not read to Plaintiff over the phone. The list of terms sent to Plaintiff included an arbitration provision. The arbitration provision required that all disputes be resolved through arbitration.

Issue. Did the arbitration provision become part of the contract between the parties?
See More Course Videos

View this case and other resources at:

Citation.2001 U.S. Dist.

Brief Fact Summary. Plaintiff Klocek, purchased a computer from Defendant Gateway, Inc. Inside the box containing the instruction manuals was a copy of Defendant’s Standard Terms and Conditions Agreement. The agreement stated that it is accepted by the purchaser if the purchaser keeps the computer longer than five days. One of the provisions in Defendant’s agreement requires arbitration.

Synopsis of Rule of Law. Terms received with a product do not become part of the contract unless the non-merchant buyer expressly agrees to them.


Facts. Defendant includes a copy of its Standard Terms and Conditions Agreement with every computer it sells in the box containing the computer battery power cable and instruction manuals. On top of the first page of Defendant’s agreement is a notice that the consumer accepts the terms and conditions by keeping the computer for more than five days. The notice is located in a printed box, separate from the other provisions and is in emphasized type. The terms and conditions include a provision requiring disputes to be resolved through final and binding arbitration in Chicago.

Issue. Did the arbitration provision become part of the contract?
See More Course Videos

One thought on “Gateway Inc Case Study

Leave a comment

L'indirizzo email non verrĂ  pubblicato. I campi obbligatori sono contrassegnati *