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.

Question

Quizplus · Accepted Answer

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.

Bob,an Attorney,purchased Licensed Software from Bill Able Inc