Hill v. Gateway 2000, Inc.

1997

Court: US Court of Appeals, 7th Circuit (Easterbrook)

Facts: The Hills bought a Gateway computer, and didn't return it within 30 days. They want to sue under RICO on behalf of Gateway customers, alleging mail and wire fraud, because the terms of the contract are not disclosed at the time of purchase.

Posture: Trial court refuses to enforce the arbitration clause, Gateway appeals.

Issue: Do the terms of the contract apply?

Holding: Yes. Reversed and remanded to arbitration.

Rule: Modern commerce basically demands that we allow cash-now-terms-later deals.

Reasoning: If we voided this, nothing would ever get done.

Dicta: