Re: Consideration in a Shrinkwrap Contract

On Fri, 20 Oct 2000 19:51:34 -0700, wrote:
>begin Ralph Clifford (rclifford[_at_]snesl.edu) quotation (Tue, Oct 17, 2000 at
>09:29:00AM -0400):
>> On Fri, 13 Oct 2000 16:28:59 -0700, Cumbow, Robert wrote:
>
>> A new display for the dashboard of a car: "Congratulations on the
>> acquisition of your new automobile. By inserting the key in the ignition
>> you agree that you have only licensed the car and title to it shall remain
>> with Big Motor Company. You agree not to drive the car in any way that
>> violates the law. If you do so, all rights you have to the car will
>> terminate and you agree to return it to Big Motor Company immediately
>> without any compensation owed to you. If you do not wish to accept the
>> terms of this license, you can return the automobile to the dealer who, we
>> are sure, will happily refund your money. . . ."
>
>...and how does this differ significantly from the practice of leasing a
>vehicle, or an apartment, for that matter, where similar stipulations
>may enacted?
>

     It's not the practice that is the problem, it is the methodology. If you go to a car company to lease a vehicle, the parties will sit down and execute a lease. Only then is the car delivered. It is the after-the-fact attempt to transform what was a sale into a license that triggers the problem.

--
Ralph D. Clifford
Professor of Law
S. New England School of Law