A Shrinkwrap Agreement Inside A Mail-order Computer Box Is An Enforceable Contract

Shrink-wrap contracts are becoming more common with the selling of a computer by mail order. This decision of Hill v. Gateway 2000, Inc., 105 F.3d 1147 (7th Cir. 1997) held that a shrink-wrap contract in the mail-order computer box is valid and enforceable. The court determined that shrinkwrap licenses are enforceable unless their terms are objectionable on grounds applicable to contracts in general.

The following questions have been addressed in this article:

What are the conditions that a court will examine to determine if a shrinkwrap agreement is enforceable?
Is it plausible in this case unlike ProCD v. Zeidenberg that a buyer will be afforded the opportunity to reject the terms by returning the computer?
Is it better for a seller to have a shrink wrap license agreement or sell the product?


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