GATEWAY COMPUTER WARRANTY STRUCK DOWN; OWNERS HAVE RIGHT TO SUE FOR DEFECTIVE PC'S
Press Release
FOR IMMEDIATE RELEASE
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 CountyTrial 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. ###