The Terms Of A Shrink-Wrap Agreement Generally Concern



In general, the primary protection of the buyer when purchasing retractable leaf products is the concept of “number security.” In other words, the product is widely used and generally well established in the community. This reduces the potential for a substantial error or defect without going through the correction manufacturer. The buyer relies primarily on market power to compel the seller to correct the problems (i.e., suppliers of poorly constructed or defective products will lose market share and will at least be easy to identify). Ultimately, the use of click-wrap agreements may be less effective for the mass international market. Applicability is the least secure for the individual consumer, but it is not possible to collect thousands of individual agreements. In the United States, the pioneering case of Pro CD v. Zeidenberg in 1996 confirmed the validity of the shrinking contracts. In ProCD, a federal appeals court considered whether a shrinking wrap license in computer software is an enforceable contract. The defendant purchased ProCD CD-ROMs containing compilations of various telephone directories. These CD-ROMs were packaged in a box with a manual of use. The box indicated that the terms of use of CD-ROMs were defined by the terms of the user`s manual. This license, which is also coded on the CD-ROM media themselves, limited the use of the CD for non-commercial purposes. The defendant published the information contained in the CD-ROMs on the Internet and sold access to third parties, which led ProCD, among other things, to sue for breach.

However, it is important to note that there will be situations where internet companies may be well advised not to use click-wrap contracts. For example, click-wrap agreements are more appropriate when end-users are expected as individuals and not as organizations. Potential problems arise when a company, not an individual, enters into a click-wrap agreement. In this case, the online retailer must ensure that the person who clicks on acceptance has the power and power to accept on behalf of the company.