In the year 2006, Liza and Vincent Concepcion took a legal action against AT&T Mobility over a contract on Mobile phone. Liza and Vincent Concepcion placed a claim before the court that AT&T Cell Phone Company had been involved in an advertising which was termed as deceptive as it falsely claimed that the wireless system included free cell phones to be given out. The legal suit transformed into a class action. The AT&T mobility requested the Southern California U.S district court to discharge the legal suit. They argued that in the contract between them and The Liza and Vincent Concepcion they had agreed that the arbitration process was supposed to be on individual bases as opposed to the lawsuits class action they had filed (Jeremy, 2010). …show more content…
The condition of the agreement as provided in the arbitration, was that in case of an arbitration the entire cost of the arbitration shall be met by the AT&T mobility. The condition would only not take effect if the claim is determined to be frivolous. The location where the arbitration would take place would be the county where the consumer is located. This can either take place though the submission of documents or through telephone. The website for the AT&T mobility provided the forms of arbitration. Damages awarded to the consumer were not limited in the arbitrator. If the AT &T Mobility settlement offer last written was less than the damage award received by the consumer, then the award would increase up to $7500. Consequently the attorney fees would be doubled. This led the southern California district Court in the United States to declare that AT&T mobility arbitration was very easy to use, quick and may require excess or full payment to the customers which is devoid of litigation or