Samsung has faced yet another lawsuit from its customer for falsely advertising the Galaxy S4 speed, performance and memory capacity. An appeal from the court has ruled out Samsung's claim for private arbitration as stated in the warranty found inside the box upon purchase and the customer is likely to win over the case. Read more details here!

Court Did Not Honor Warranty Booklet as Binding Contract

In 2014, Samsung has sued by a user named Mr. Norcia for lying about the performance, features and specs of Galaxy S4 and the South Korean tech giant has brought the case out of the court system into a private arbitration as stated in the warranty booklet. However, a U.S. District Court in California has ruled out the claim of Samsung's warranty booklet as a legal binding contract between the company and the consumer and presided that the case could move forward.

Furthermore, the panels of the Ninth Circuit clarified that the terms stated in the warranty booklet benefits Samsung in a one-way street where in fact, the customers need not to agree with it because the company is the one replacing and repairing the device. When Samsung compared their warranty booklet with Software Company's shrink wrap, the court pointed out the company has put notice outside the box to inform customers they are agreeing with to the license and Samsung did not, Consumerist reported.

Moreover, in Samsung's finals argument, the company has pointed out the customer has signed a "Customer Agreement" with Verizon Wireless where an arbitration agreement included but still it fails. The judges pointed out that Samsung is not a signatory nor covered by the agreement and just governs the relationship between the mobile carrier and the customer.

Since the court hit back Samsung for every possible defense they had, the possibility of the case to reach the status of class-action is imminent and customers who have the same complaints could receive compensation, according to Engadget. On the other hand, Samsung has also the right to file an appeal if the case reaches the Supreme Court.

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