Cengage Advantage Books: Business Law 13th Edition by Roger LeRoy Miller

Exercise 15

Shrink-Wrap Agreements. TracFone Wireless, Inc., sells phones and wireless service. The phones are sold for less than their cost, which TracFone recoups by selling prepaid airtime for their use on its network. Software in the phones prohibits their use on other networks. The phones are sold subject to the condition that the buyer agrees "not to tamper with or alter the software." This is printed on the packaging. Bequator Corp. bought at least 18,616 of the phones, disabled the software so that they could be used on other networks, and resold them. Is Bequator liable for breach of contract? Explain. [TracFone Wireless, Inc. v. Bequator Corp., __ F.Supp.2d __ (S.D.Fla. 2011)]