Legal Question in Consumer Law in Texas

Dell online orders being cancelled

On 10/9/2003 www.dell.com had posted an offer for a Dimension 4600 PC. The PC had a $400 discount as well as $100 mail-in rebate. Dells site allowed you to modify the configuration by downgrading components. After downgrading, the price of the system after discount and rebate was $139.

Dell acknowledged the orders and many hours later sent out confirmations to hundreds/thousands of people. Later the next day, Dell stated that all of the orders were cancelled due to a pricing error and offered a link to the ''correct'' system (with a higher price).

A number of people have now received their machines at the quoted price while others are getting nothing.

Since there was an order, and confirmation (done by a human?), should Dell have to honor the price?

What does it mean that some of the orders, made after Dell tried to fix the �problem�, are being filled?

Does their offer of the ''correct'' system and its inability to be configured as the base system in the original web page constitute bait and switch?

Can Dell be taken to small claims court over this? If so, can we file in our own state, or would it have to be taken up in Dell�s home state?

Thank you.


Asked on 10/16/03, 12:14 pm

3 Answers from Attorneys
Erin Corley Fibich, Hampton, Leebron & Garth, L.L.P.

Re: Dell online orders being cancelled

I would consider a deceptive trade practices case against Dell. The question will be, however, what are your damages? You were not out any money, correct? Nevertheless, they represented something to you that was false. Speak with an attorney about your options, namely your ability to bring suit against Dell in Texas because they conduct business in Texas. You could also discuss other possible causes of action and the myriad of issues presented under the deceptive trade practices act.

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Answered on 10/16/03, 12:21 pm
Lawrence Holzman Holzman Law Firm, LLC

Re: Dell online orders being cancelled

As to your own claim, there was clearly a breach of contract and your damages would be measured by the amount of the difference between the cost of the computer before and after their "pricing error". One question that I have is whether you had already paid for it when you placed your order (i.e. did you authorize a charge to your credit card?). If so, then I think you paid consideration and there is little way for them to legitmiately back out from the deal with you.

There are also claims that can be made under Maryland's Consumer Protection Act, as well as under similar federal law, for misleading and deceptive trade practices.

This means that an action could be brought under the consumer protection act in maryland small claims court. I believe that a Maryland Court will likely have personal jurisdiction over Dell to hear such complaint.

Also, I am very interested in how it is that you know: (1) that there were hundreds/thousands of people rescinding their contract; (2) how you know that Dell stood behind the order for some people.

I would suggest that you contact an attorney for a quick consult to decide if it's worth investing your time (even if you are going to file a small claim w/o counsel).

I'd be happy to chat briefly at your leisure -- just call me at the number listed below. (301-220-2200)

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Answered on 10/16/03, 12:43 pm
Michael Worsham Michael C. Worsham, Esq.

Re: Dell online orders being cancelled

Small claims would generally be the best option if you are out money damages. However, if they are reneging on a contract, I can not advise you on which court in Texas you would need to be in to enforce the contract that it appears was created. Dell undoubtedly does enough business in Texas, assuming that is where you are, for you to sue them there. I also wonder how you know about the thousands of others.

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Answered on 10/16/03, 1:22 pm


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