What Are Shrink Wrap Agreements


In Groff v. America Online 3, the Rhode Island Superior Court upheld the validity of AOL`s click-wrap agreement entered into by a customer. Groff sued AOL over AOL`s decision to change the pricing model from a fixed rate for a limited time to Unlimited Internet access for a higher fixed monthly rate. The plaintiff accused this practice of violating Rhode Island`s Unfair Trade and Consumer Law 4 because AOL offered this pricing model, even though it knew that its computer system was not able to enable the number of users AOL expected to switch to the plan. Software licensed under shrink film conditions can be roughly divided into two categories: proprietary software and open source software. Click-wrap agreements offer important protection to companies that sell goods and services over the Internet beyond the protection provided by intellectual property rights in their goods and services. Click-wrap agreements are often used to disclaimer implied warranties, limit financial liability to the purchase price of the product, establish applicable law and place of dispute resolution, limit permitted uses, protect non-copyrighted material, and prohibit decompilation or reverse engineering of software. Whether shrink film agreements are enforceable or not has remained a constant and controversial issue in the courts. Numerous studies have been conducted to determine whether a customer automatically accepts the terms of a shrink film contract upon payment. Academics and researchers are set up in different tents on this subject. While some courts agree that a consumer accepts the terms of a shrink film agreement because they pay for the product, accept the product and even open the packaging.

Others are of the view that the consumer could not have accepted the conditions because he has no knowledge of what the conditions provide until the shrink film is removed. The term comes from therapist wrap-gets, which are also fundamental in the product industry. The basic idea is that the customer will receive a notification that will tell you something about the effects of „By opening this package, you agree to our terms and conditions… The authors suggest following three steps when adapting U.S. click-wrap agreements for international use. First of all, it must be admitted that under the current law, it is impossible to apply a wrapping agreement with a single click worldwide. Country adjustments should be made accordingly, especially for key markets where the internet company is expected to sell significant quantities of products. For example, U.S. Internet companies should develop a contract between the U.S. and Canada that serves as the default international agreement. These companies should then have non-U.S. companies. Lawyers are reviewing this agreement for key markets.

The Shrinkwrap Snafu: Untangling the Extra Element in Breach of Contract Claims Based on Shrinkwrap Licenses, Smith, N. (2003). BYU L. Rev., 1373. Shrink Film Licenses: The Debate Continues, Unicorn, D.A. (1997). Idee, 38, 383. Mass Market Software and the Shrinkwrap License, Rich, L. L.

(1994). Colo. Law., 23, 1321. In this blog post, Sakshi Bhatnagar of National Law University Odisha, Cuttack writes about the various agreements included in eContracts. Shrink film contracts are primarily designed to grant the software company directly enforceable contractual rights against the customer if the customer purchases the software from a software provider. .