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GATEWAY COMPUTER WARRANTY STRUCK DOWN; OWNERS HAVE RIGHT TO SUE FOR DEFECTIVE PC'S
Chicago, Illinois - June 5, 2002- If your Gateway computer can not be repaired, even after numerous attempts, the Gateway warranty that comes with a new computer states you must use a non-court procedure known as arbitration, for resolving your dispute. Whatever the outcome, you give up your rights to pursue a legal claim, as the arbitration decision is final or "binding". An Illinois Appeals Court found this portion of Gateway's warranty to be in violation of the Magnuson-Moss Federal Trade Commission Improvement Act. This act guarantees consumers the right to legal remedy should they end up with a defective product.
In the court's opinion, "binding arbitration is not enforceable", thus 3 plaintiffs will be able to sue Gateway in Cook County Trial Court
for a new computer or cash award. Under the Magnuson-Moss Act, Gateway, or the defendant in this case, is responsible for payment of the attorney's fees
incurred by consumers pursuing legal claims for defective computers.
Not only does Gateway mandate arbitration to resolve a dispute, but an owner must use their specific choice of arbitrator - the National Arbitration forum. If you visit the NAF website at www.arb-forum.com, you will find very detailed instructions for filing a complaint. Instructions so detailed, you need an attorney must to translate the legal language. The expenses a Gateway owner could end up paying include a filing fee, an administrative fee, a hearing fee and attorney's fees, all of which are dependent upon how far you proceed in the process. The total amount spent to resolve your complaint could end up being more than the purchase price of the Gateway.
Attorneys for the plaintiffs, Krohn & Moss, ltd., filed the 3 original complaints for consumers against Gateway in Cook Count Circuit Court. According to Adam Krohn, attorney, "The Magnuson-Moss Federal Warranty statute was enacted to prevent deception and afford consumers rapid and satisfactory resolution of their complaints. Gateway's warranty is clearly an effort to thwart meaningful consumer remedies and never be called to account in a court of law." The law firm of Krohn & Moss handles thousands of lemon law and warrranty claims each year involving defective vehicles and products. They utilize both state lemon laws and the Magnuson-Moss Act when pursuing a claim, in an effort to achieve the widest recovery for clients.
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