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Dell gagging contracts illegal

by on03 July 2008

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Victory for the consumer


A bloke
who wanted to take Dell to the cleaners for selling him a computer that did not have as much storage space as Dell-boy claimed, has managed to get the hardware manufacturer's contract thrown out of court.

The contract, which New Mexico consumer, Robert Fiser, signed when he bought his PC, required him to go to arbitration rather than court to solve the dispute. Dell was supported by the state Court of Appeals, which said that Fiser did not have the right to bring a class-action lawsuit because he was bound by the terms of an arbitration agreement contained inside the packaging of the computer.

But Fiser had the backing of the Attorney General, Gary King, and the case got to the New Mexico State Supreme Court. King said in the news release that the lawsuit was great for consumers because it protected them from Dell's unfair and deceptive trade practices.

Now, the high court ruling opens the door for a class-action suit against Dell under the New Mexico Unfair Practices Act and the New Mexico Uniform Commercial Code.
Last modified on 04 July 2008
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