NEW MEXICO SUPREME COURT OVERTURNS DELL CLASS ACTION BAN IN A COMPUTER MEMORY CASE

The New Mexico Supreme Court upheld a class action suit filed against Dell on behalf of individual customers on the basis of a claim that Dell misrepresented the memory size of its computers, despite the fact that Dell’s “terms and conditions” precluded customers from pursuing class action suits against the company (Fiser v. Dell Computer Corporation, No. 30, 424, June 27, 2008). The New Mexico Supreme Court based its holding on the assumption that Dell’s class action ban was contrary to fundamental New Mexico policy.

The following questions have been addressed in this article:

How did the New Mexico court acquire jurisdiction over this matter when the “terms and conditions” named Texas as the forum for customer disputes?
How is the ban on class action suits contrary to New Mexico’s public policy to protect consumers’ rights?
Does the Federal Arbitration Act (FAA) preclude a plaintiff who has agreed to arbitrate a claim from proceeding with his claim in any manner other than arbitration?

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