Asked by theresa betty on May 09, 2024
Verified
Bob,an attorney,purchased licensed software from Bill Able Inc.to prepare his clients' invoices online.The shrinkwrap packaging for the program disks and the software manuals contained a limitation of remedies clause,which limited the buyer's remedies to the $50 purchase price of the software.Bob later discovered that his invoices for the past year were too low due to a malfunction in the software,costing him over $10,000 in lost revenue.Bob sues Bill Able Inc.for breach of warranty.What is the likely result?
A) Bob wins because he has equal bargaining power with Bill Able,Inc.
B) Bob wins because a shrinkwrap's limitation of remedies clause is generally unenforceable.
C) Bob wins because the court will likely view the limitation of remedies clause as unconscionable and unenforceable.
D) Bob loses because the disclaimer is effective.
Shrinkwrap Packaging
A method of packaging where a product is covered with a clear, tight-fitting plastic cover, often used for software boxes and other packaged goods.
Limitation of Remedies Clause
A contract provision that restricts the types of remedies available to the parties in case of breach, often to mitigate liability.
Unconscionable
Actions or conditions that are shockingly unfair or unjust; often referring to terms in contracts that are so one-sided that they are oppressive or unfairly penalize one party.
- Comprehend the idea and consequences of express and implied warranties in business exchanges.
- Comprehend the regulatory structures that govern negligence, strict liability, and the exclusion of warranties in cases of product liability.
- Understand the effects of limitations on remedies and disclaimer provisions on the enforcement of warranties.
Verified Answer
MR
Michaela RuarkMay 14, 2024
Final Answer :
D
Explanation :
It is extremely common for shrinkwrap contracts to contain warranty disclaimers and limitation of remedy clauses.The courts have considered the enforceability of these disclaimers and clauses in shrinkwrap contracts and have upheld them.Therefore,Bob will likely lose because the disclaimer is effective.
Learning Objectives
- Comprehend the idea and consequences of express and implied warranties in business exchanges.
- Comprehend the regulatory structures that govern negligence, strict liability, and the exclusion of warranties in cases of product liability.
- Understand the effects of limitations on remedies and disclaimer provisions on the enforcement of warranties.