Bragg v. Linden Research Inc.
United States District Court for the Eastern District of Pennsylvania
487 F.Supp.2d 593 (2007)
Bragg (plaintiff) played Linden Research's (defendant's) virtual world Second Life and purchased virtual land for $300; Linden believed the purchase was improper, seized the land, and froze Bragg's entire account, effectively confiscating his other virtual property and currency as well. Bragg sued in Pennsylvania, and Linden moved to compel arbitration under Second Life's Terms of Service, which players had to accept by clicking a button with no opportunity to negotiate — the arbitration clause was buried in general provisions, required California arbitration, split fees between the parties (a heavy burden for individual players), imposed confidentiality, and let Linden unilaterally modify the clause.
Whether a court may refuse to enforce a contract, including an arbitration clause, on the basis of substantive unconscionability.