Again, it is featured in section 18, and applicable only to gamers in the United States.
The section reads in 18.1: "BINDING ARBITRATION CLAUSE AND CLASS ACTION WAIVER FOR U.S. RESIDENTS. PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS CONCERNING ANY DISPUTES BETWEEN YOU AND MICROSOFT IF YOU LIVE IN THE UNITED STATES FOR PURPOSES OF SECTION 18.1 AND ITS SUBSECTIONS, "MICROSOFT" MEANS MICROSOFT CORPORATION AND ITS SUBSIDIARIES, AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS."
Once again, you must click accept or the Xbox Live console will log you out of Live. If you have a dispute with Microsoft, you must submit to arbitration thusly:
If you give a Notice of Dispute to Microsoft, you must send by U.S. Mail to Microsoft Corporation, ATTN: LCA ARBITRATION, One Microsoft Way, Redmond, WA 98052-6399, a written statement setting forth (a) your name, address, and contact information, (b) your Windows Live ID or gamertag, if you have one, (c) the facts giving rise to the Dispute, and (d) the relief you seek. A form is available at www.xbox.com/notice. If Microsoft gives a Notice of Dispute to you, we will send by U.S. Mail to your billing address if we have it, or otherwise to your e-mail address, a written statement setting forth (a) Microsoft's contact information for purposes of efforts to resolve the Dispute, (b) the facts giving rise to the Dispute, and (c) the relief Microsoft seeks.
Once again, snail mail? Better send it registered mail or Microsoft can claim "We didn't get that postal mail!"
Is this truly legal? Thanks to an AT&T court settlement, it could be, but all of this is due to the existence of EULAs. Let us know what you think.