Shrink-wrap Agreement Unenforceable Under The Uniform Commercial Code

Shrink-wrap contracts are becoming more common with the selling of computer software by mail and telephone orders. This decision of Step-Saver Sys. v. Wyse Tech. and The Software Link held that a shrink-wrap agreement was enforceable under the Uniform Commercial Code (UCC). The court applied the "battle of the forms" rules and determined that the parties’ agreement was complete when the goods were ordered via telephone coupled with the purchase order. The shrinkwrap license that was sent to the purchaser after the order was placed had no legal effect.

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?
What is the purpose of shrink-wrap agreements?


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