“The blue hyperlinks on the defendant’s Web pages, constituting the five-step process for ordering the computers, should be treated the same as a multipage written paper contract.” —Hopkins, Justice 

Facts: Plaintiffs Dewayne Hubbert, Elden Craft, Chris Grout, and Rhonda Byington purchased computers from Dell Corporation online through Dell’s website. To make their purchase, each of the plaintiffs completed online order forms on five pages on Dell’s website. On each of the five pages, Dell’s “Terms and Conditions of Sale” were accessible by clicking on a blue hyperlink. In order to find the terms and conditions, the plaintiffs would have had to click on the blue hyperlink and read the terms and conditions of sale. On the last page of the five-page order form, the following statement appeared: “All sales are subject to Dell’s Terms and Conditions of Sale.” The plaintiffs filed a lawsuit against Dell, alleging that Dell misrepresented the speed of the microprocessors included in their computers they purchased. Dell made a demand for arbitration, asserting that the plaintiffs were bound by the arbitration agreement that was contained in the terms and conditions of sale. The plaintiffs countered that the arbitration clause was not part of their Web contract because the terms and conditions of sale were not conspicuously displayed as part of their Web contract. The trial court sided with the plaintiffs, finding that the arbitration clause was unenforceable because the terms and conditions of sale were not adequately communicated to the plaintiffs. Dell appealed. 

Issue: Were the terms and conditions of sale adequately communicated to the plaintiffs? 

Language of the Court: We find that the online contract included the “Terms and Conditions of Sale.” The blue hyperlink entitled “Terms and Conditions of Sale” appeared on numerous Web pages the plaintiffs completed in the ordering process. The blue hyperlinks on the defendant’s Web pages, constituting the five-step process for ordering the computers, should be treated the same as a multipage written paper contract. The blue hyperlink simply takes a person to another page of the contract, similar to turning the page of a written paper contract. Although there is no conspicuousness requirement, the hyperlink’s contrasting blue type makes it conspicuous. Because the “Terms and Conditions of Sale” were a part of the online contract, the plaintiffs were bound by the “Terms and Conditions of Sale,” including the arbitration clause. 

Decision: The appellate court held that Dell’s Terms and Conditions of Sale, accessible by clicking on a blue hyperlink, which included the arbitration clause, were part of the Web contract between the plaintiffs and Dell. The appellate court reversed the decision of the trial court and held in favor of Dell. 

Ethics Questions: Did the plaintiffs act ethically in claiming that the terms and conditions of sale were not included in their Web contract? Do you read the terms and conditions of sale when you purchase goods over the Internet?