Val purchased a computer from Gateway, Inc. Upon starting the computer, she was asked to agree to a number of provisions in the contract of purchase in order to continue initial installation. The program indicated that if she did not wish to agree to the terms, she could return the computer to Gateway at Gateway's expense. One of the provisions required that any disputes arising under the agreement be submitted to binding arbitration. Val wonders if this clause is valid.
What statutory rights and protections does Val have in court?
Advise Val on her rights under the Gateway agreement. Provide relevant laws, cases, and examples to support your answer.
Gateway clause requiring Valerie to agree that any disputes arising under the agreement be submitted to arbitration is valid. This is called the arbitration clause. The relevant law that provides support is the Federal Arbitration Act. This law has been passed so that the pressure on the court system gets reduced. This means that any disagreement that arises from the contract has to be challenged in arbitration before any action is taken in court (See; Prima Paint ...
Statutory Rights and Protections are discussed step-by-step in this solution. The response also has the sources used.