Chassman v. People Resources
The plaintiff sought the return of $1,850 paid to People Resources, a self-described 'organization for singles,' alleging the contract was void under General Business Law § 394-c, procured by fraud, and for lack of services. Defendant argued the law was inapplicable and that arbitration was mandated by the contract. The court determined that People Resources operates as a 'social referral service' under the broad interpretation of General Business Law § 394-c, despite its claim of merely providing a 'forum.' The contract was found to violate several statutory provisions, including charging excessive fees and lacking mandatory cancellation options, rendering it void and unenforceable due to its public policy implications. Consequently, the arbitration clause within the void contract was also deemed unenforceable, leading the court to grant the plaintiff's motion for summary judgment and deny the defendant's.