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Courts and Contract Law
Shanoah Barajas
Rasmussen College

Author Note
This research is being submitted on October 30, 2011, for Amy Chantry’s B234/BUL2241 Section 06 Business Law course.

Courts and Contract Law
In the case of Concepcion versus AT&T Mobility LLC held under arbitration in the Supreme Court of the United States a breach of contract regarding sales tax was filed against AT&T. A contract was formed between AT&T and Vincent & Liza Concepcion in an agreement among both parties for the sale and purchase of AT&T cell phone products. After the contract had been formed in February 2008, the Concepcions sued AT&T for damages regarding a purchase of AT&T cell phone products. An overview of the case provided by 563 U.S.____ (2011) states, “Their suit was consolidated with a class action alleging, inter alia, that AT&T had engaged in false advertising and fraud by charging sales tax on “free” phones”. AT&T allegedly had been charging customers added sales tax as payments for cell phones that were advertised to be free of charge with a service contract agreement. The sales tax charges in the amount of the exact price of the phones that applied to the Concepcion’s account disregarded the offers made in the service agreement which resulted in a breach of contract and the dispute between the Concepcions and AT&T that was brought to the attention of the California Supreme Court. Upon entering into the contract AT&T agreed to the payment of damages should a breach of contract occur and not be compensated within 30 days of the occurrence. AT&T Mobility LLC’s acts of misleading customers in contract agreements were deemed unconscionable and enforceable according to federal and state law. The judge’s final decision resulted in the payment of damages to the Concepcions in the amount stated in the contract agreement along with lawyer’s fees being compensated two times that of the original cost. The judge verified...
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