The Enforceability Of Shrink Wrap Agreements

Contracts have entered a new form in the electronic age with the invention of the Internet. Shrink-wrap contracts are becoming more common with the selling of computer software. This decision of ProCD, Inc. v. Zeidenberg, 86 F.3d 1447 (7th Cir. 1996), reversing 908 F. Supp. 640 (W.D. Wis. 1996) (granting summary judgment in favor of copyright infringement defendants) was revolutionary, because this is the first case implicitly holding that a shrink-wrap contract 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 a shrinkwrap agreement is enforceable?
Is it plausible that a buyer will be afforded the opportunity to reject the terms by returning the software?


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