In in Re Zappos

question 28

Multiple Choice

In In Re Zappos.com Inc., Customer Data Security Breach Litigation, the case in the text in which customers of Zappos claimed that they were not bound to an arbitration agreement contained in a contract with Zappos, what was the result of the case?

• A) The court ruled for the plaintiffs for the following two reasons: (1) there was no contract because the plaintiffs did not assent to it, and (2) even if a contract existed, the contract was illusory and unenforceable because Zappos could avoid promises at any time.
• B) The court ruled for the plaintiffs only because of its finding that no contract existed based on the plaintiffs' lack of assent.
• C) The court ruled for the plaintiffs only because of its finding that the contract was illusory and unenforceable because Zappos could avoid promises at any time.
• D) The court ruled in favor of Zappos on the basis that even though some provisions of the contract were unenforceable, because of the federal policy favoring arbitration agreements, the arbitration clause itself was enforceable.
• E) The court ruled in favor of Zappos on the basis that the contract was properly entered into and was fully enforceable.

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis, reflecting the time value of money.

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a business venture.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Fixed Costs

Fixed costs refer to expenses that do not change with the level of production or output over the short term, such as rent, salaries, and insurance premiums.