Legal Environment of Business

Times New Roman size 12 font double spaced
Notes:
Do NOT use outside sources from the internet or elsewhere;This is NOT a research assignment.
Do not use extensive quotes. Paraphrase or keep any quotes to approximately one line. Points will be deducted for excessive quoting.
Pretend the Mallh case is binding precedent in Pennsylvania (i.e. all lower courts in Pennsylvania must abide by it). binding precedent means abiding the higher courts
First: read the facts of the case.
Then read the questions at the end of the assignment.
Then, review the sources in the order presented. Take notes on and think about how the material in the sources relates to your case. Does it affect precedent? Are the facts in the sources similar or dissimilar to the facts we have given you in this case? How so? What may be important differences?
Then answer the questions. Although you should completely answer all questions, most of the paper should be answering questions 2 – 4. Do not just provide one-word answers. Explain your rationale.
QUESTIONS:
1.What is the difference between bringing a lawsuit in a court of law and bringing an arbitration claim?
2.Sunny claims that he did not realize what arbitration meant and that this lack of understanding is an excuse against bringing the claim in arbitration. Based on Mallh, will that defense succeed? Why or why not?
3.Can Vulture prohibit class action arbitrations based on the Italian Colors v. American Express case?
4.What defense did Italian Colors bring against enforcement of the class action provision in its arbitration clause with American Express? Was it successful? Why or why not?
5.Why did the dissenting Justices think the majority decided the Italian Colors case incorrectly?
Rubric
FACTS
Sunny Solaria purchases a standard cable TV service package from Vulture Conglomerate, a well-known provider of cable TV access, doing business in all 48 states in the continental United States.
Before having the cable system installed, Sunny was directed to a website which listed all Terms and Conditions of the contract for installation, type of services and cost. All terms were clearly set forth (although some were lengthy) and Sunny had ample time to read and understand the terms. Before agreeing to any term, Sunny had to click “I accept” and upon clicking “I accept” another pop-up would appear which stated “Are you sure you are accepting this term, if so click ‘yes’, if not, click “no?” ALL terms were subject to this double-click.
Many terms were negotiable but a few terms were not. One non-negotiable term stated in relevant part:
The parties agree that any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by arbitrationadministered by the American Arbitration Association in accordance with its Commercial Arbitration Rules. The arbitration hearing shall take place at the nearest Arbitration Association to the buyer’s residence before a single arbitrator. Class actions are prohibited. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
After receiving a few bills, Sunny noticed an overcharge of $7.50 on each bill. After complaining three times over six months, he was told by two operators that it was a mistake and Sunny would be sent a refund and the charge removed; a third operator told Sunny there was no mistake. Nine months have now elapsed and the charge remains on Sunny’s bill and no refund has occurred. To make matters worse, the cable service malfunctioned a number of times, causing Sunny to go for days without service. Sunny has never received a credit for the service outages, despite language in his contract which provides for refunds of service outages of more than 24 hours. Vulture is aware of the extent of the outages.
Sunny has learned that hundreds of others have the same billing and service outage problems with Vulture and they wish to band together and to bring class action lawsuit in the Pennsylvania Courts of Common Pleas.