"One of the things you agreed to when you signed the ebay user agreement, The agreement that
allows you to become a member of the community of ebay sellers, Is to not sue ebay."
Not precisely true. It might actually be illegal for eBay to (try to) require people not to sue them, as possibly a violation of the 7th Amendment to the Constitution of the United States of America.
Here's what item 18, Legal Disputes, of eBay's User Agreement says (emphases added) :
"B. Agreement to Arbitrate
You and eBay each agree that any and all disputes or claims that have arisen, or may arise, between you and eBay (or any related third parties) that relate in any way to or arise out of this or previous versions of the User Agreement, your use of or access to our Services, the actions of eBay or its agents, or any products or services sold, offered, or purchased through our Services shall be resolved exclusively through final and binding arbitration, rather than in court.
Alternatively, you may assert your claims in small claims court, if your claims qualify and so long as the matter remains in such court and advances only on an individual (non-class, non-representative) basis. The Federal Arbitration Act ("FAA"), and to the extent not inconsistent with the FAA, the laws of the State of Utah, without regard to principles of conflict of laws, governs the interpretation and enforcement of this Agreement to Arbitrate."
That does not say eBay users are not allowed to sue eBay. Trying to cut through the "legalese", you should be able to see that it says "You and eBay agree that any and all disputes or claims . . . shall be resolved exclusively through final and binding arbitration, rather than in court."
That sentence doesn't talk about how the dispute or claim begins, but how it is resolved. Indeed, many, many arbitrations do begin with lawsuits filed by the plaintiffs in their local county court. Arbitrations are less expensive than trials in courts, and the decisions of the arbitrators ("binding arbitration") carry the same weight as decisions of judges and/or juries.
In fact, the People's Court, Judge Judy, and similar TV shows are truly Binding Arbitrations, rather than actual small claims "trials". The show's producers review cases that have been filed in small claims courts, trying to find unusual or interesting cases to put on TV. They then contact the people involved, offering them a chance to be on TV . . . . .
And don't overlook the second paragraph which starts with: "Alternatively, you may assert your claims in small claims court, if your claims qualify . . . ." Thanks to shows like the People's Court and Judge Judy, most people know that small claims courts have maximum dollar limits; that's what the word "qualify" means in that sentence.
Of course, any attorney worth his/her salt would certainly ask a potential client if there's any rules and regulations that eBay buyers and sellers agree to when they buy or sell on eBay.
