Shrink-wrap Contracts

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Shrink-wrap contracts are license agreements or terms and conditions, which can only be read and accepted or denied after the product has been opened.

Shrink-wrap contracts are license agreements or terms and conditions, which can only be read and accepted or denied after the product has been opened. These terms and conditions and agreements are sometimes referred to as EULAs, for End User License Agreement, and are between the software publisher and end user.

The majority of EULAs contain statements that the publisher is not legally responsible
for any damage to the computer as a result of using the software, including the
computer crashing, loss of data, time, or income.

Many publishers contend that once the shrink-wrap on the packaging has been broken on the product, the end user, or consumer, has automatically accepts the license, no matter the circumstances. In various states, however, courts have heard cases and ruled that the user cannot read the EULA until the shrink-wrap was removed and the product opened, thus many courts have ruled that the shrink-wrap software licensing to be invalid. However, a minority of courts found otherwise, leaving the legal status of shrink-wrap contracts in the United States unclear.

Web-wrap, click-wrap, and browse-wrap are terms that refer to license agreements of software that is downloaded from the Internet.



 

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