U.S. Court of Appeals for the Second Circuit

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Second Circuit upholds online contract and arbitration provision

August 17, 2017

The Second Circuit held that the mobile registration process at issue created an enforceable contract.

U.S. Chamber files amicus brief

October 31, 2016

The U.S. Chamber filed an amicus brief in the Second Circuit arguing that the mobile registration process completed by app users signing up for a rideshare service created an enforceable contract. Under the standards governing conventional contracts in most States, a consumer is bound by the terms of a contract as long as a reasonably prudent person would be on notice of the terms of the contract. The Chamber’s brief argued that the mobile contracting process in question, which resembles numerous other online contracts, easily met this standard, and that there was no basis to alter traditional contract law simply because the contract was formed electronically. The brief also urged the courts to reject the plaintiffs’ argument that heightened scrutiny should be applied because the contract contained an agreement to resolve disputes through arbitration. As the brief explained, that argument conflicts with the FAA, which prevents courts from applying special rules to contracts simply because they require arbitration.

Andrew J. Pincus, Evan M. Tager, and Archis A. Parasharami of Mayer Brown LLP served as co-counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.

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