Shrink-Wrap Agreements

DavinaW

The next time you order something from a manufacturer, be it a computer or a toaster, take time to read the paper or booklet entitled Terms of Sale or Terms of Agreement that comes with your order. In the past you may have ignored this booklet filled with microscopic mumbo-jumbo (I know I have). But In doing so, you unwittingly entered into a contract.

A shrink-wrap agreement (also called shrink-wrap license) is an agreement between a manufacturer and purchaser/user, which becomes valid when the purchaser opens the box the product is shipped in. Regardless of whether or not the purchaser reads the agreement, by keeping the product they validate the agreement.

For example, say you order a computer part from a manufacturer. When you receive and open the box, you validate the agreement contained in the box. If you keep and use the product, you are legally bound by this shrink-wrap agreement.

If the shrink-wrap agreement states that all sales are final after 15 days instead of the normal 30 days, you cannot return the product if it breaks on the 16 th day. If the agreement states that all arbitration will take place in Alaska, you have to travel to Alaska to arbitrate or sue the manufacturer.

In most cases, shrink-wrap agreements cover terms that we generally expect when purchasing products. But when you order an expensive or specialty item, be sure to read the shrink-wrap agreement so you are aware of your legal options should something go wrong.

January 20, 2026
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