Question

Corporate Code, Inc., sells business software accounting and book keeping programs, blank business forms, inventory control functions, and the like in different combinations, in different packages, at different prices. Each package includes a shrink wrap agreement that limits warranties and remedies. Developmental Research Corporation (DRC) buys a Corporate Code package and uses the product. Later, DRC files a suit against the software seller, claiming that the product was flawed and that the flaws caused DRC to suffer business losses. DRC asks for relief that exceeds the limits in the shrink wrap agreement. What is a shrink wrap agreement? Are such agreements always enforced? Under what circumstances is a court likely to enforce this agreement?

Answer 1

Step-by-step explanation:

A shrink wrap agreement refers to a legally binding agreement or undertaking usually embedded or shrink-wrapped inside a package.

In other words, the buyer can only see the terms of the agreement of the purchase after paying for the product and opening the wrappings.

In terms of whether such agreements are always enforced, many legal experts agree that it is not always enforced.

A good example of circumstances where a court is enforced this agreement is the ProCD v. Zeidenberg case.