Question: A customer picks up the phone, orders a Keystone 2000 computer, and gives a credit card number. Presently a plain shipping box arrives, with only

A customer picks up the phone, orders a Keystone 2000 computer, and gives a credit card

number. Presently a plain shipping box arrives, with only an address label and "fragile"

warnings on the outside and containing on the inside the Keystone 2000 computer and a list

of terms, said to govern unless the customer returns the computer within 30 days. One of the

terms in the box was an arbitration clause. Rob, the customer, kept the computer more than

30 days before complaining about its components and performance. Rob filed suit in federal

district court in the Seventh Circuit, arguing, among other things, that Keystone had engaged

in mail and wire fraud, and that the ProCD v. Zeidenberg Seventh Circuit Court of Appeals

decision only applied as binding precedent to software, not computers. Keystone asked the

district court judge to enforce the arbitration clause, and not allow Rob to bring his suit in

federal district court. The judge refused, writing that "[t]he present record is insufficient to

support a finding of a valid arbitration agreement between the parties or that the plaintiffs

were given adequate notice of the arbitration clause." Keystone, relying on ProCD, took an

immediate appeal to the Seventh Circuit Court of Appeals. What result?

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