The Complex Litigator

View Original

Hyperlinks can add enforceable terms to online contracts, according to Illinois District Court in PDC Laboratories Inc. v. Hach Co.

While technology makes our lives easier, it has a way of making legal issues more complicated.  PDC Laboratories Inc. v. Hach Co., No. 09-1110 (C.D. Ill., Aug. 25, 2009) is a fine example of how technological advances require the novel application of old legal concepts to new circumstances.  PDC Laboratories concerns "hyperwrap" contracts, or contracts that include additional pages of terms accessible via a hyperlink.  In PDC Laboratories, the court held that a limitation of remedies clause that was available via a hyperlink was an enforceable term in the parties' contract for the sale of goods.  PDC Laboratories followed a similar holding from an Illinois state court case, Hubbert v. Dell Corp., 359 Ill. App.3d (Ill. Ct. App. 2005).  PDC Laboratories described Hubbert as "the leading authority in 'hyperwrap' cases, such as the case now before the Court."  Order, at 5 n. 1.

Via E-Commerce and Tech Law Blog.