Question
Customers brought a class action lawsuit against T-Mobile in a Maryland federal district court. They alleged that the company's offer of a free phone to
Customers brought a class action lawsuit against T-Mobile in a Maryland federal district court. They alleged that the company's offer of a free phone to anyone who signed up for its service was fraudulent to the extent the company charged the new subscriber sales tax on the retail value of each free phone. T-Mobile moved to compel arbitration based on the arbitration clause contained within its contract of service that also contains a class action waiver. Based on the U.S. Supreme Court prior rulings (precedent) what should be the outcome?
Group of answer choices
a)Arbitration clauses arenotbinding and therefore T-Mobile cannot compel the customers to initiate an arbitration proceeding.
b)T-Mobile can compel arbitration and the arbitration proceeding should be on individual-bases because the Supreme Court of the United Stated has held that class action waivers in the arbitration agreements are enforceable.
c)Customers cannot pursue their claims because their class must first becertifiedby the appropriate federal or state court.
d)Neither courts nor arbitration has jurisdiction to hear this case.
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