New Mexico AG King Asking Supreme Court to Help Protect Consumers

October 25, 2007 -- (SANTA FE)---In a case that has potentially significant consequences for New Mexico consumers; New Mexico Attorney General Gary King’s office is asking the state Supreme Court to overturn a lower court decision that is preventing a New Mexico man from suing Dell Computer Corporation for selling him a computer that did not have as much storage capacity as Dell claimed it did.

“More and more purchases are being made on-line. We want to make sure that consumers are clearly and fairly informed about what policies and terms they agree to when they order a product over the internet,” says AG King. “Part of my job is to protect New Mexico citizens from unfair and deceptive trade practices. In this case, disclosure to the consumer is an important issue.”

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The Attorney General’s Office last week filed a brief with the high court in support of Robert Fiser and his class action lawsuit against the computer company that began in 2004. The lawsuit claims parts of the New Mexico Unfair Practices Act and the New Mexico Uniform Commercial Code were violated by Dell. The plaintiff also states claims for breach of contract, misrepresentation and violations of the covenants of good faith and fair dealing.

First a district court, then the state Court of Appeals upheld Dell’s contention that the plaintiff was bound by an arbitration provision displayed on the back of a packing slip attached to the box containing the computer that was shipped to the consumer.

The Attorney General argues that the Court of Appeals erred by determining that Texas law, not New Mexico law applied to the case; by holding that the arbitration provision was not procedurally unconscionable; and that the plaintiff was precluded from filing a class action lawsuit.

Source: New Mexico Attorney General