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Hill v. Gateway 2000, Inc.

United States Court of Appeals for the Seventh Circuit
33 UCC Rep. Serv. 2d 303, 105 F.3d 1147 (1997)



Rich and Enza Hill (plaintiffs) ordered a computer from Gateway 2000, Inc. (Gateway) (defendant) by phone. Gateway shipped the computer and included in the box a written agreement which the Hills could reject by returning the computer in 30 days. The agreement also contained an arbitration clause. The Hills kept the computer for more than 30 days without returning it, and later filed suit in federal court alleging RICO violations against Gateway on behalf of themselves and a class of purchasers. Gateway sought to compel arbitration and the district court denied Gateway’s request. The district court found no valid arbitration agreement between the parties and found that the Hills did not have adequate notice of the arbitration clause. Gateway appealed the district court’s denial of the request to compel arbitration.

Rule of Law


Holding and Reasoning (Easterbrook, J.)

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