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Case Citations [1] (Spring 2024)

handle is hein.ali/relwcc0010 and id is 1 raw text is: THE AMERICAN
LAW INSTITUTE
Spring 2024 Citations
CONSUMER CONTRACTS (DRAFTS)
§ 3. Adoption of a Modification of Standard Contract Terms
C.A.9, 2023. Quot. in sup., com. (3) quot. in sup. (quot. in sup. T.D. No. 2, 2022). Driver who made
deliveries for operator of an online marketplace on a contract basis filed a class action against operator,
alleging that it violated federal and state laws by monitoring and wiretapping drivers' conversations
when they communicated during off hours in closed social-media groups. The district court denied
defendant's motion to compel arbitration pursuant to its updated terms of service. This court affirmed,
holding, inter alia, that plaintiff was not bound by the updated terms of service. The court explained that,
under Restatement of Consumer Contracts § 3, defendant's general email communications stating that
the updates took place did not constitute reasonable notice of its proposed modified terms and did not
provide reasonable opportunities for plaintiff to reject the proposed terms; furthermore, previous
versions of the terms of service stating the possibility of future modifications similarly did not give
plaintiff notice. Jackson v. Amazon.com, Inc., 65 F.4th 1093, 1100, 1101
Ariz.2023. Cit. in ftn. and adopted; subsec. (a)(2) cit. in sup.; subsec. (b) quot. in ftn. (citing and quoting
§ 3 of T.D. No. 2, 2022). Customer filed a class action in federal court against credit union, alleging that
it used ambiguous and misleading language concerning its overdraft fees in violation of federal law.
After credit union moved to compel customer to arbitrate pursuant to its updated terms and conditions,
which customer had neither viewed nor affirmatively opted out of, the district court certified questions
for review. This court adopted Restatement of the Law, Consumer Contracts § 3 in holding that a
business could modify non-negotiated, standardized terms governing an on-going, at-will, consumer-
business relationship if it showed that the contract's initial terms expressly notified the consumer that it
could make future changes to the terms, that it gave-and the consumer received-reasonable notice of
the modification and an opportunity to opt out without penalty, and that the consumer continued the
relationship past a reasonable opt-out period. Cornell v. Desert Financial Credit Union, 524 P.3d 1133,
1135, 1336, 1139, 1140.
§ 5. Unconscionability
C.A.9, 2023. Quot. in diss. op. (quoting § 5 of D.D., 2017). Trade association for airlines sued city that
owned and operated an airport after it enacted an ordinance requiring airlines using its airport to provide
COPYRIGHT (2024 By THE AMERICAN LAW INSTITUTE
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Printed in the United States of America
For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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