One of my clients, Joseph, had an interesting legal situation come up with Dell.
Joseph ordered a system which came with a $200 "promotional" e-gift card. This gift card had an expiration date (legal because it's promotional, and not directly purchased), and could not be used for purchases of regular gift cards. These terms were stated in the terms-of-service agreement when the gift card was e-mailed to Joseph.
Joseph did not read these terms of service. Instead, he called Dell and asked if he could use the e-gift card to purchase regular gift cards.
Surprisingly, the representative said yes, and put the order through. Joseph received a confirmation e-mail, stating that his regular $200 gift card would be shipped.
Two weeks passed, and Joseph did not receive the card as expected. He contacted Dell, who told him that the order was canceled two days after it was placed. Joseph stated that he did not cancel the order. Dell informed them that they canceled the order, because it was against their terms of service. Joseph asked why they did not inform him of the cancellation. Dell insisted that they e-mailed the cancellation details at the time.
Joseph demanded they honor the mistake on a one-time basis, as their own employee authorized and in fact placed the transaction. Dell refused, stating that it was Joseph's responsibility to read the terms of service, and that they have a legal right to cancel orders placed in error, even if the error is on their part.
There is no question that refusing to honor this transaction is poor customer service on Dell's part, but that is not the discussion at hand.
For the record, Dell admits that their own employee made a mistake, placed the order, and told Joseph that it was allowed to buy regular gift cards with e-gift cards. That part is not in dispute.
Are Dell's actions legal? If Joseph sued them, what would be the proper ruling?