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U.S. Court of Appeals for the First Circuit

Case Status

Decided

Docket Number

Oral Argument Date

October 02, 2017

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First Circuit panel concludes arbitration agreement in online contract is not enforceable

June 25, 2018

Click here to view the opinion.

U.S. Chamber files amicus brief opposing argument that online contracts must clear higher hurdles than paper contracts

April 27, 2017

The U.S. Chamber filed an amicus brief arguing that the mobile registration process completed by Uber users signing up for the rideshare service created an enforceable contract. Under the well-established standards governing conventional contracts in most states, a consumer is bound by the terms of a contract as long as a reasonably prudent person would be on notice of the terms of the contract. The Chamber’s brief argued that the mobile contracting process in question, which resembles numerous other online contracts, easily met this standard, and that there was no basis to alter traditional contract law simply because the contract was formed electronically. The Chamber also urged the First Circuit to reject the plaintiffs’ argument that heightened scrutiny should be applied because the contract contained an agreement to resolve disputes through arbitration. As the brief explained, that argument conflicts with the clear holding of the U.S. Supreme Court that the Federal Arbitration Act prevents courts from applying special rules to contracts simply because they require arbitration.

Andrew J. Pincus, Archis A. Parasharami, Daniel E. Jones, and Karianne M. Jones of Mayer Brown LLP served as co-counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.

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