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Court Upholds Online Arbitration Clause

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Court Upholds Online Arbitration Clause

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Many organizations use click-through agreements or other online terms with customers and business partners. Enforceability of online agreements is key. A federal court in Illinois has just addressed the validity of an arbitration clause in an online employment application.

Alfredo Chatman filed a lawsuit against his employer, Pizza Hut claiming alleged violations of certain Illinois wage laws. Pizza Hut filed a motion to compel arbitration based on a clause in an employment application that Chatman completed online. Chatman argued that there was insufficient consideration on Pizza Hut’s part for the mutual arbitration clause because of another clause allowing Pizza Hut to change applicable rules and policies without notice.

The court rejected Chatman’s argument, finding that the “escape” clause was separate from the arbitration clause. The court also found that Pizza Hut provided valid consideration in initially offering Chatman employment as well as his continued employment. The court granted Pizza Hut’s motion to compel arbitration.

Are your organization’s online agreements enforceable? Ossian Law P.C. is poised to assist with your online agreement and any other IT law needs. Review the Pizza Hut decision here.

 

Contact us at Ossian Law P.C. regarding social media law or any other information technology law question.

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