Step-Saver Data Systems, Inc. v. Wyse Technology

939 F.2d 91 (1991)

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Step-Saver Data Systems, Inc. v. Wyse Technology

United States Court of Appeals for the Third Circuit
939 F.2d 91 (1991)

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Facts

Step-Saver Data Systems (Step-Saver) (plaintiff) built computerized office-management systems. To build these systems, Step-Saver purchased software from The Software Link, Inc. (TSL) (defendant). Step-Saver sent TSL purchase orders detailing various terms. TSL shipped the orders with invoices containing the same terms. None of these forms mentioned any warranty disclaimers. However, TSL included what was referred to as a box-top license or a shrinkwrap agreement on each software box. This license stated that opening the box constituted acceptance of the license’s terms and that a customer could reject the terms by returning the software for a refund. The license terms included disclaimers of implied or express warranties for the software. Twice, TSL asked Step-Saver to sign agreements that included warranty-disclaimer terms, but Step-Saver declined both times. TSL’s software had serious problems that caused Step-Saver to stop selling its systems. Step-Saver sued TSL for breach of warranty. TSL argued that the warranty disclaimers in the box-top license were binding on Step-Saver. The district court agreed and ruled for TSL. Step-Saver appealed.

Rule of Law

Issue

Holding and Reasoning (Wisdom, J.)

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