Arbitration Cannot Be Compelled Without Giving Reasonable Notice To Other Contracting Party

Online contracts are becoming more commonplace. The federal appellate court in determined that customers suing the company for privacy invasion are not bound by an end-user license agreement forcing them into arbitration. This decision of Netscape v. Speche is revolutionary because this case implicitly holding that an end user agreement is not enforceable for arbitration unless the customers were reasonably aware of this provision and could undermine the use of these contracts.

The following questions have been addressed in this article:

What has been the legal precedence involving click-wrap agreements?
How should businesses make sure that click-wrap agreements are valid and enforceable for the sale of goods or for the providing of services?


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