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Federal Judge Rules Online Contracts "Illusory" and "Unenforceable"
Federal Judge Rules Online Contracts "Illusory" and "Unenforceable"
#1
In a ruling allowing a lawsuit against Blockbuster Video to proceed, a federal judge has ruled that Blockbuster's online terms and conditions -- which include the standard clauses denying the customer the right to take cases against Blockbuster to court and forcing them to waive their right to join a class-action suit against Blockbuster -- are not binding on anyone.  While this is immediate bad news for Blockbuster, it's worse news for every shyster, scam artist, software publisher and online service that relies on onerous EULA and TOS "contracts" to make sure their customers are properly intimidated against doing anything they don't like.  http://www.theregister.co.uk/2009/04/21 ... enlighted/]Register article here.
-- Bob
---------
Then the horns kicked in...
...and my shoes began to squeak.
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#2
This could prove to have interesting implications in the eternal Fight Against Adware
"No can brain today. Want cheezeburger."
From NGE: Nobody Dies, by Gregg Landsman
http://www.fanfiction.net/s/5579457/1/NGE_Nobody_Dies
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#3
It will also have huge negative consequences on a lot of legitimate online businesses.

-----------------

Epsilon
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#4
Epsilon: how do you figure?

I cannot see any reasonable need for a business -- online or off -- to reserve the right to unilaterally change its contract -- notice posted or sent to the
other party or not. In fact, I would argue that the very idea is against the whole concept of a binding contract. It's asinine. And business can thrive
-- and has -- without that particular clause.

The key point under contention, as I see it, is the contract -- not whatever the contract was about (in this case video rental history, it appears). One could
argue -- and would be correct, I'd say -- that if you don't like the "you can't sue us" clause, you shouldn't agree to the contract
with them in the first place. But regardless, once a contract is established it should only be changeable under clearly defined terms -- and these are not.

I can't see how this would hurt legitimate online business, and in fact I would argue that after the fallout is over it may very well help it.

(Aside: I seem to recall a cell phone company trying this particular trick once -- the one-sided "suck it, customer" contract -- and getting spanked
for it, but my Google-fu is weak and I can't remember details. Anyone?)

--sofaspud
--"Listening to your kid is the audio equivalent of a Salvador Dali painting, Spud." --OpMegs
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#5
Quote: Sofaspud wrote:

Epsilon: how do you figure?


If online contracts are unenforceable then any business that relies on an online contract just became ripe for abuse. Including places like
Netflix, iTunes and Ebay.

------------------

Epsilon
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#6
Quote:If online contracts are unenforceable

The article is not clear on this point, as to whether 'online contracts' as a whole are unenforcable, or whether it's the language Blockbuster had that allowed them to unilaterally change the terms of the agreement...

You gentlemen, obviously, have different perceptions on the wetherness of this whichfor. I suggest a duel to the death.
"No can brain today. Want cheezeburger."
From NGE: Nobody Dies, by Gregg Landsman
http://www.fanfiction.net/s/5579457/1/NGE_Nobody_Dies
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#7
(Wire: with rusty sporks!)

I doubt there's any idea in anyone's mind that online contracts themselves are in danger from this. As presented in the linked article, it seems
pretty clear to me the judge's complaint is with the specific clauses of this contract, and possibly by extension other contracts containing fundamentally
similar clauses, but not the idea of online contracts overall. Regardless of what the title of the article might imply.

If the headline were the only thing to go by, I could see that interpretation. But as-is, it seems ... unlikely.

--sofaspud
--"Listening to your kid is the audio equivalent of a Salvador Dali painting, Spud." --OpMegs
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#8
This result shouldn't have been surprising, a few years ago a US court struck down a similar rule in a singed paper contract. The courts point in that case
was also that if one party can change it unilaterally it's not a contract. Don't remember the case though.
E: "Did they... did they just endorse the combination of the JSDF and US Army by showing them as two lesbian lolicons moving in together and holding hands and talking about how 'intimate' they were?"
B: "Have you forgotten so soon? They're phasing out Don't Ask, Don't Tell."
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#9
Here's http://www.theregister.co.uk/2009/04/23 ... r_lawsuit/]a different article on the subject, with a link to a PDF of the decision. The central point seems to be any one-sided TOS/EULA/etc. which claims that it can be changed arbitrarily and with no warning is not binding because there's no way for the other side of the "contract" to know just what the "agreement" means at any given moment, or any way to trust that the "agreement" is going to stay the same for any measureable length of time.
-- Bob
---------
Then the horns kicked in...
...and my shoes began to squeak.
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#10
I'm sure the entire software industry is incredibly pissed off at Blockbuster right now. They've been very careful to avoid letting any case involving
their bogus "license agreements" get near a courtroom for many years, only to see it get blown by a video store. :-)
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