A Shrinkwrap Agreement Inside A Mail-order Computer Box Is An Enforceable Contract When It Is Retained For A Thirty Day Period

Shrink-wrap contracts are becoming more common with the selling of a computer by mail order. This decision of Brower v. Gateway 2000, Inc., 676 N.Y.S.2d 569 (New York Supreme Ct. App. Div. [Aug.] 1998) held that a shrinkwrap contract was formed when the plaintiffs retained the software for longer than the 30 day "approve or return" period. However, the court further held that certain contract terms relating to the arbitration provision at issue were not enforceable.

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 in this case unlike ProCD v. Zeidenberg that a buyer will be afforded the opportunity to reject the terms by returning the computer?
Would it have changed the result if the licensee was a customer or a sophisticated commercial user?


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