In Brower V

question 24

Multiple Choice

In Brower v.Gateway Computer,the issue involved the enforcement of a mandatory and binding arbitration agreement pertaining to disputes between Gateway and its customers.With regard to the agreements enforcement,the court determined that:

• A) because the Standard Terms and Agreements document made the arbitration agreement enforceable after the customer retained the computer for thirty days and over thirty days had elapsed, the agreement was considered accepted and enforceable.
• B) because Congress had indicated in the Federal Arbitration Act that arbitration agreements were the preferred method of dispute resolution, the courts were bound and preempted by Congress's stated policy so the agreement had to be enforced.
• C) because the parties could not agree on a suitable arbitrator, the clause was useless and only litigation before a court could adequately and fairly resolve the dispute.
• D) because the mandatory fee required by the arbitration forum exceeded the cost of most of Gateway's products, the prohibitive cost of arbitration made the arbitration unfair and biased toward Gateway and therefore nullified the arbitration clause

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