Hill v. Gateway 2000, Inc.
United States Court of Appeals for the Seventh Circuit
105 F.3d 1147 (1997)
The Hills (plaintiffs) ordered a computer from Gateway (defendant) by phone, and Gateway shipped it with an enclosed written agreement, including an arbitration clause, that the Hills could reject by returning the computer within 30 days; the Hills kept the computer well beyond 30 days without returning it, then sued Gateway in federal court alleging RICO violations on behalf of a purchaser class. Gateway moved to compel arbitration, but the district court denied the motion, finding no valid arbitration agreement and inadequate notice of the clause; Gateway appealed.
Whether a purchaser may be bound under the Uniform Commercial Code to terms included in product packaging when given an opportunity to review the terms and reject them by returning the product.