The 9th U.S. Circuit Court of Appeals Monday rejected Barnes & Noble Inc’s motion to compel arbitration by Kevin Nguyen, who tried to buy two deeply discounted its Nook Touchpads in 2011 after the bookseller dropped the discontinued HP product as a failed competitor to Apple’s iPad. Nguyen simply had insufficient notice of the terms of his attempted purchase.
Barnes & Noble liquidated its Touchpads at “fire sale” prices and Nguyen ordered two but the bookseller cancelled his order due to overwhelming demand. Nguyen sued in 2012 in a consumer class action, claiming unfair and deceptive business practices.
Contracts on the internet come in two basic forms: “clickwrap,” which requires consumers to click an “I agree” box when presented with terms and conditions, while a “browsewrap” agreement posts a hyperlink to the agreement and does not require consumer assent.
Case: Nguyen v. Barnes & Noble, No. 12-56628