The Shrink-wrap Contract Ruling Of Procd V. Zeidenberg Is Rejected In Klocek Case

Shrink-wrap contracts are becoming more common with the selling of computers by mail order. This decision of Klocek v. Gateway, Inc., et al., 2000 U.S. Dist. Lexis 9896 (D. Kan. June 16, 2000) rejected the holding in ProCD v. Zeidenberg. Although the Agreement at issue stated that if the plaintiff retained the computer for five days, the agreement would be assumed to be accepted. The court here determined that these terms are not binding, because the plaintiff never accepted them and therefore the defendant’s motion to dismiss was denied. The court determined that because the seller did not notify the buyer of these conditions then they were not deemed accepted under the Uniform Commercial Code.

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?
Would the result have changed if the time before the agreement became binding would have been more than five days?

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