A recent decision in the U.S. Court of Appeals for the Ninth Circuit serves as an important warning for companies that do business with customers online. The message: If your company has an arbitration agreement or other important terms and conditions on its website, make sure these legal notices are in a place where the user can be expected to find them.
Barnes & Noble Inc., the company on the losing end of the circuit’s decision in Nguyen v. Barnes & Noble, learned this lesson the hard way. Aside from condemning the bookseller’s online legal-notice etiquette, the decision also underscores the importance of keeping up with the quickly evolving standards that govern online purchases.
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