Meyer v. Uber Techs., Inc.

868 F.3d 66 (2d Cir. 2017)

 

RULE:

Courts around the country recognize that an electronic "click" can suffice to signify the acceptance of a contract, and there is nothing automatically offensive about such agreements, as long as the layout and language of the site give the user reasonable notice that a click will manifest assent to an agreement.

FACTS:

Plaintiff user of a technology company's car service smartphone application alleged that Defendant company and its former chief executive engaged in illegal price fixing. Defendants moved in the district court to compel arbitration, contending that the user agreed to a mandatory arbitration provision in the company's terms of service when he registered for an account using the application. The district court denied the motions.

ISSUE:

May reasonably conspicuous terms of service unambiguously manifest assent to an arbitration agreement by registering for an on-line account?

ANSWER:

Yes.

CONCLUSION:

The ride-hailing service's mobile phone application provided reasonably conspicuous notice of the terms of service as a matter of California law because the notice of the terms of service was provided simultaneously to enrollment, thereby connecting the contractual terms to the services to which they applied; a reasonably prudent smartphone user would understand that the terms were connected to the creation of a user account. The consumer unambiguously manifested his assent to the terms of service because a reasonable user would know that by clicking the registration button, he was agreeing to the terms and conditions accessible via the hyperlink, whether he clicked on the hyperlink or not; he signed up for an account, and entered his credit card information with the intention of entering into a forward-looking relationship with the service.

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