Segway Gets Defective Handlebar Class Claims Sent to Arbitration

A proposed class action alleging Segway Inc. sold a defective scooter with handlebars that could collapse while in use will go to arbitration, a federal trial court said.

Plaintiff Lucas Austin was bound by a shrinkwrap agreement containing a mandatory arbitration clause, Judge Kai N. Scott of the US District Court for the Eastern District of Pennsylvania said Thursday.

The agreement was enforceable because the Segway scooter was shipped in a box stamped with a prominent notice of a limited warranty and arbitration agreement, alongside a website address where the buyer could read the agreement, Scott said.

The case bolsters ...