Dell Computer Corp. v. Union des consommateurs

Dell Computer Corporation (Dell) (defendant), an American computer equipment seller with offices in Canada, sold computers to consumers online. Dell’s website inadvertently listed incorrect prices for some computers. Before Dell corrected the pricing errors on the website, Olivier Dumoulin (plaintiff), a Quebec consumer, placed an order for the computers with the incorrect prices. Hundreds of other Quebec consumers also placed orders with the incorrect prices. The online purchase orders were made pursuant to transnational standard-form contracts that contained arbitration clauses, requiring any disputes arising from the purchase orders to be submitted to arbitration with the National Arbitration Forum (NAF), which was located in the United States. After Dell refused to honor the purchase orders, Dumoulin filed suit against Dell in Quebec. The Union des consommateurs (the union) (plaintiff), a Canadian consumer-protection group, motioned for authorization to institute a class action against Dell on behalf of the Quebec consumers. Dell motioned to compel arbitration. The Quebec trial court concluded that the arbitration clause was unenforceable against Dumoulin and granted the union’s motion to authorize the class action. Dell appealed. While the appeal was pending, the Quebec government enacted legislation that prohibited the enforcement of arbitration clauses against consumers who wished to bring class-action lawsuits.