User Manual

9
(c) Small Claims Court. You may also litigate any dispute in small claims court in Your county of
residence or King County, Washington, if the dispute meets all requirements to be heard in
the small claims court. You may litigate in small claims court whether or not You negotiated
informally rst.
(d) Binding Arbitration. If You and Microsoft do not resolve any dispute by informal
negotiation or in small claims court, any other effort to resolve the dispute will be
conducted exclusively by binding arbitration. You are giving up the right to litigate
(or participate in as a party or class member) all disputes in court before a judge or
jury. Instead, all disputes will be resolved before a neutral arbitrator, whose decision will be
nal except for a limited right of appeal under the Federal Arbitration Act. Any court with
jurisdiction over the parties may enforce the arbitrator’s award.
(e) Class Action Waiver. Any proceedings to resolve or litigate any dispute in any forum will
be conducted solely on an individual basis. Neither You nor Microsoft will seek to have
any dispute heard as a class action, private attorney general action, or in any other
proceeding in which either party acts or proposes to act in a representative capacity.
No arbitration or proceeding will be combined with another without the prior written
consent of all parties to all affected arbitrations or proceedings.
(f) Arbitration Procedure. Any arbitration will be conducted by the American Arbitration
Association (the “AAA”) under its Commercial Arbitration Rules. If You are an individual and
use the Microsoft Hardware or Accessories for personal or household use, or if the value of the
dispute is $75,000 or less whether or not You are an individual or how You use the Microsoft
Hardware or Accessories, its Supplementary Procedures for Consumer-Related Disputes will
also apply. For more information, see www.adr.org or call 1-800-778-7879. To commence
arbitration, submit the form available at http://go.microsoft.com/fwlink/?linkid=245497
to the AAA. Y
ou agree to commence arbitration only in Your county of residence or in King
County, Washington. Microsoft agrees to commence arbitration only in Your county of
residence. You may request a telephonic or in-person hearing by following the AAA rules.
In a dispute involving $10,000 or less, any hearing will be telephonic unless the arbitrator
nds good cause to hold an in-person hearing instead. The arbitrator may award the
same damages to You individually as a court could. The arbitrator may award declaratory
or injunctive relief only to You individually, and only to the extent required to satisfy Your
individual claim.
(g) Arbitration Fees and Incentives.
1. Disputes Involving $75,000 or Less. Microsoft will promptly reimburse Your ling fees
and pay the AAA’s and arbitrator’s fees and expenses. If You reject Microsoft’s last written
settlement offer made before the arbitrator was appointed (“Microsoft’s last written
offer”), Your dispute goes all the way to an arbitrator’s decision (called an “award”), and
the arbitrator awards You more than Microsoft’s last written offer, Microsoft will give You
three incentives: (i) pay the greater of the award or $5,000; (ii) pay twice Your reasonable
attorney’s fees, if any; and (iii) reimburse any expenses (including expert witness fees and
costs) that Your attorney reasonably accrues for investigating, preparing, and pursuing
Your claim in arbitration. The arbitrator will determine the amount of fees, costs, and
expenses unless You and Microsoft agree on them.
2. Disputes Involving More Than $75,000. The AAA rules will govern payment of ling fees
and the AAA’s and arbitrator’s fees and expenses.
3. Disputes Involving Any Amount. In any arbitration You commence, Microsoft will seek
its AAA or arbitrator’s fees and expenses, or Your ling fees it reimbursed, only if the
arbitrator nds the arbitration frivolous or brought for an improper purpose. In any
arbitration Microsoft commences, Microsoft will pay all ling, AAA, and arbitrator’s
fees and expenses. Microsoft will not seek its attorney’s fees or expenses from You
in any arbitration. Fees and expenses are not counted in determining how much a
dispute involves.
(h) Conict with AAA Rules. This warranty governs to the extent it conicts with AAA’s
Commercial Arbitration Rules and Supplementary Procedures for Consumer-Related
Disputes.
(i) Claims or Disputes Must Be Filed Within One Year. To the extent permitted by law, any claim
or dispute under this warranty must be led within one year in small claims court (Section
8(c)), an arbitration proceeding (Section 8(d)), or in court, if Section 8 permits the dispute
to be led in court instead of arbitration. The one-year period begins when the claim or
Notice of Dispute rst could be led. If a claim or dispute is not led within one year, it is
permanently barred.
(j) Severability. If the class action waiver in Section 8(e) is found to be illegal or unenforceable as
to all or some parts of a dispute, then it will not apply to those parts. Instead, those parts will
be severed and proceed in a court of law, with the remaining parts proceeding in arbitration.