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Contract Cases 2021: A Review of Legal Matters

The year 2021 has been marked by numerous legal issues that have affected businesses and individuals alike, and one of the most important areas of law is that of contracts. Here, we will take a look at some of the most notable contract cases of the year and what they mean for those involved.

1. The Apple v. Epic Games dispute: This case was filed by Epic Games, the developer of the popular video game Fortnite, against Apple over the App Store`s billing practices. Epic Games claimed that Apple`s 30% commission on in-app purchases was excessive and amounted to unfair competition. The case was heard by a federal judge in May 2021, who ruled in favor of Apple, stating that Epic Games had breached its contract with the company by introducing its own payment system in the game.

What this means for businesses: The ruling highlights the importance of understanding the terms of an agreement and the potential consequences of breaching them. It also underscores the need to ensure that contractual relationships are carefully drafted and reviewed to avoid disputes down the line.

2. The Robinhood Trading Platform Class Action Lawsuit: Several class action lawsuits were filed against Robinhood, the popular stock trading app, over the company`s decision to restrict trading of certain stocks in January 2021. The plaintiffs claimed that this violated the app`s contract with its users, which promised “unrestricted” trading. A federal judge ruled in August 2021 that the lawsuits could proceed, dealing a blow to Robinhood`s defense.

What this means for businesses: Companies need to carefully consider the language they use in their agreements with customers to avoid potential legal issues. The case also highlights the importance of transparency and customer communication in building trust and avoiding legal disputes.

3. The DoorDash Arbitration Clause Dispute: A group of DoorDash drivers filed a lawsuit against the company over its mandatory arbitration clause, which required disputes to be resolved through arbitration rather than in court. The plaintiffs claimed that this clause violated California state law, which allows workers to sue their employers in certain circumstances. A California judge ruled in August 2021 that the arbitration clause was unenforceable, marking a significant victory for the plaintiffs.

What this means for businesses: Employers need to be aware of the legal requirements in their jurisdiction and ensure that their contracts do not violate them. The case also highlights the importance of considering the potential consequences of arbitration clauses and other contractual terms on employees, particularly in light of current labor disputes and legislative changes.

Conclusion:

In conclusion, contract law continues to be an important area of legal practice, and businesses need to carefully consider the contracts they enter into, the language they use, and the potential implications of contractual terms. By staying informed about the latest legal developments and working with experienced legal professionals, businesses can avoid legal disputes and build stronger, more sustainable relationships with their customers and employees.