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Man Sues Gateway Because He Can't Read EULA

Scoopy writes "California resident Dennis Sheehan took Gateway to small claims court after he reportedly received a defective computer and little technical support from the PC manufacturer. Gateway responded with their own lawyer and a 2-inch thick stack of legal docs, and claimed that Sheehan violated the EULA, which requires that users give up their right to sue and settle these cases in private arbitration. Sheehan responded that he never read the EULA, which pops up when the user first starts the computer, because the graphics were scrambled — precisely the problem he had complained to tech support in the first place. A judge sided with Sheehan on May 24 and the case will proceed to small claims court. A lawyer is quoted as saying that Sheehan, a high school dropout who is arguing his own case, is in for a world of hurt: 'This poor guy now faces daunting reality of having to litigate this on appeal against Gateway...By winning, he's lost.'"

36 of 666 comments (clear)

  1. EULAs are not meant to be read by Opportunist · · Score: 4, Insightful

    Seriously. Have you? Can you keep a straight face and tell me you read all those legalese crap? I didn't.

    First of all, it can be summed up into "We may do everything, you may do nothing, essentially, you're a dork for using our software". And second, almost all of them violate our consumer protection laws.

    So, why bother wasting time?

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:EULAs are not meant to be read by noidentity · · Score: 5, Insightful

      Mod parent up. An author who makes the GPL/LGPL into an EULA for their program clearly doesn't even understand the license at its most basic level.

    2. Re:EULAs are not meant to be read by Nasarius · · Score: 5, Insightful

      Amen. Unfortunately, that includes such prominent packages as the Windows binary installers for Pidgin and OpenOffice. OOo is particularly bad in that it forces you to read and accept the LGPL before installing. Stupid, stupid, stupid. I'll read the license when I want to do something that's not already implicitly legal, thanks. Stamp it with an open-source logo or something if you want to advertise the fact that this is OSS and not just freeware. Don't propagate the notion that I need your permission to run your software.

      --
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    3. Re:EULAs are not meant to be read by bhtooefr · · Score: 4, Insightful

      Yes, I'd put it in a pre-install Readme step, and then put "There is no End User License Agreement for this program - for redistribution and modification rights, please read the GNU General Public License in the previous step." as the EULA.

    4. Re:EULAs are not meant to be read by mrchaotica · · Score: 4, Insightful

      Then instead of putting COPYING.txt itself in there, they should put the following (or something like it):

      This software is licensed under the GPL. You are not required to agree to, or even read, the GPL before using this software, as it is not an EULA. However, we suggest you do so anyway because it grants you additional rights regarding distribution and modification, which it is to your advantage to be aware of.
      --

      "[Regarding the 'cloud,'] ownership was what made America different than Russia." -- Woz

    5. Re:EULAs are not meant to be read by cgenman · · Score: 3, Insightful

      I don't think the problem is that most people can't be bothered to look at what they're agreeing to, so much as for the daily things they're supposed to read they by and large have no real recourse to disagree anyway.

      I don't like non-compete agreements, and I don't like "everything you do in your spare time belongs to us" agreements. And while I've argued the former out of contracts, I've never managed to argue the latter, immoral as it may be, because the people I've worked for have had THEIR clients force it upon THEM.

      Similarly, I disagree with certain clauses in the Windows license. But if I didn't agree to the clauses, I'd really be out of a career. I don't agree to "binding arbitration in the state of Virginia" if my VCR explodes and burns my house down, but I can't seem to find a manufacturer who doesn't have that clause written on a sticker on their VCR somewhere. If you buy a video game, take it home, open it, and discover in the EULA that they want to slime your computer with a spyware / monitoring application... what are you going to do? The store sure isn't going to take it back, whatever the heck the click-through license says.

      THIS IS WHY WE HAVE LAWS, PEOPLE! The only, THE ONLY reason for forcing your customers to agree to binding arbitration is to take away their legal rights. Don't put up with this.

    6. Re:EULAs are not meant to be read by Courageous · · Score: 3, Insightful

      Well. I'm a somewhat-libertarian, and I like contracts. Real ones. Such as the ones that require there to exists a true Meeting of the Minds between parties for there to legally exist a contract. Any situation in which a contract is so lengthy that some agent cannot go over every single term with you in utter clarity is no contract at all.

      The modern concept that thwarts what I think is the way it ought to be done is the "Contract of Adhesion"... the notion that says that once a contract is signed, insofar as the terms are reasonable and similar to other such provisions in like contracts, whether or not you knew about the terms is of no concern. I find the Contract of Adhesion to be a villainous development in our laws; it should be done away with entirely in all circumstances.

      With the Contract of Adhesion done away with, even Mortgages Agreements would have to be shortened. Why? The mortgage companies would have to consider the costs of their hourly time in explaining the contract, and the relative merits of their competitors who don't bear such expenses. And so forth.

      The EULA obviously couldn't exist at all. It would require a human in the store at the point of sale to go over it with you.

      To me, if it's not sufficiently important to justify human intervention, it's simply not sufficiently important to justify a contract.

      C//

    7. Re:EULAs are not meant to be read by swillden · · Score: 3, Insightful

      That can be accomplished with a simple 1-2 sentence disclaimer, rather than a full EULA-like license. A small disclaimer like that doesn't perpetuate the notion that some permission is required to use the software.

      --
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  2. what with companies ? by mikee805 · · Score: 4, Insightful

    Dont companies these days thing its a bad thing to sue their own customers? Let alone make headlines for doing? Really what do they gain?

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    B5 71 ED FB 55 D6 4E 68 07 25 E2 FA CA 93 F0 2F, is mine! All mine!
  3. Re:When you buy a new PC... by Anonymous Coward · · Score: 5, Insightful
    Never mind the readability. If I see a hardware EULA, here are the possible results:
    • Contract of sale is already closed, EULA is not valid -- end of story
    • Contract of sale is already closed, EULA is valid -- computer unfit for purpose for which it was sold (won't compute unless I agree to more limitations)
    • Contract of sale is not yet closed, EULA is valid -- I don't agree, so it's refund time
  4. critical mass by ribman · · Score: 5, Insightful

    I believe that we may be approaching critical mass (in decades or centuries, not years) within the imposition of legal absurdity upon humankind. I expect that the populace will ultimately become so oppressed by the duress of corporate greed that uses legal thuggery as it's enforcer, that humanity will just quit accepting it and reject the entire premise of law.
    If there is wisdom within the world of corporate law, someone will realise that this is approaching and will work for internal reform, before external reform arrives as a consequence of insults to humanity like this.

  5. Re:???? Lawyers are idiots !!!!! by Vicissidude · · Score: 4, Insightful

    Exactly. He's already made Gateway spend money not only on his tech support calls, but on a lawyer who doesn't come cheap. At some point, it will be in Gateway's interest to just cut their losses and refund the money. The longer he holds out, the more likely that will happen.

  6. Not easy being a computer user by Midnight+Thunder · · Score: 5, Insightful

    Being a computer user is really tough sometimes: Not only do they expect you to be a computer expert, but they also expect you to be a legal expert.

    --
    Jumpstart the tartan drive.
  7. Sums up the US court system nicely by EvilGrin666 · · Score: 3, Insightful

    A lawyer is quoted as saying that Sheehan, a high school dropout who is arguing his own case, is in for a world of hurt: 'This poor guy now faces daunting reality of having to litigate this on appeal against Gateway...By winning, he's lost.'" If that doesn't illustrate everything that's wrong with the US court system, I don't know what does. It's a sad day when the only people who can 'win' are those who can afford it. I, for one, hope he ends up in an appeal court with a sympathetic judge who still believes in the system.
  8. Somebody please explain by kosmosik · · Score: 4, Insightful

    > the EULA, which requires that users give up their right to sue

    Is it even possible in US to get in such agreement? I am Polish. ;) I don't know much about US law system but the whole idea looks awkard. In my country you can state whatever bullshit you wish in license agreement or whatever - but it is void unless it is valid with the law. So I could make a license that you own me your liver if you use my software while not drinking milk - but it would be pointless.

    It is possible in US to just make a license that disallows you to sue by the other party? That is kind of retarded - even if it is possible - what it is for?

    I thought that you _ALLWAYS_ have a right to sue (fight for your rights) and nobody can take it from you?

  9. EULA's are not a legal contract by timmarhy · · Score: 4, Insightful
    contracts require the ability to negotiate the terms and talk with the other party. EULA's do not allow this. more so ALL eula's are given to you post purchase of software/hardware, which means you've been forced into agreeing to something without seeing the details first, which is not legal under most contract law.

    i've always had the opinoin that eula's are not legal, and are just used as a bully tactic. i hope this guy wins.

    --
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  10. Re:"By winning, he's lost." by Hucko · · Score: 5, Insightful

    Abraham Lincoln would have been proud then.

    And these blokes need to re-evaluate what they are doing in life


    Having said that Abe Lincoln probably would have preferred to finish/receive an education.

    --
    Semi-automatic amateur armchair Australian philosopher; conjecture ready at any moment...
  11. Re:???? Lawyers are idiots !!!!! by ScrewMaster · · Score: 3, Insightful

    On the other hand, those guys are generally bought-and-paid for, and many corporations seem to feel that it's in their best interests never to be seen losing.

    --
    The higher the technology, the sharper that two-edged sword.
  12. BS He won and he won big time by codepunk · · Score: 3, Insightful

    HS Dropout or not and I don't care how you look at it he wins no matter what. Just for a lawyer to show it is gonna cost the company 10 times the cost of a new system. When you sue one of these big co's in small claims court they loose no matter what. On top of this ad the bad publicity and they loose 100 times any little monetary claim involved.

    So he goes in and does a crappy job arguing his case and looses, well so what he still cost them
    100 times the cost of a new system, goes home empty but still stuck it to them.

    --


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  13. Re:When you buy a new PC... by Anonymous Coward · · Score: 5, Insightful

    Sorry, but the agreement states that you agree to it automatically by hitting the "I agree" button. Signatures really are rarely necessary to create a legal contract (granted they help ensure them, but things are often contracts without them). The agreement could state that you agree to it automatically just by reading it. Doesn't make it true.
  14. Gateway loses. Period. by bdemchak · · Score: 3, Insightful

    Think about it. The legal system is often not about right/wrong or justice. It's about business tactics and business advantage. And that's what Gateway's EULA is about, too. And Gateway doesn't have lawyers write them or defend them out of any sense of justice. It's all about business advantage. So, the weird question is how Gateway expects to win any business advantage. They've already lost a lot of good will on this issue alone. They used to be the underdog goodguy. And now, for any of us who cultivated any sense of denial that they've turned to the dark side, the denial is gone. Whether or not the plaintiff prevails, Gateway loses big. The EULA was the right cross, and the lawyer's intemperate remarks were the knockout punch. This is self-inflicted, Gateway. Bye bye. Sadly.

  15. Re:"By winning, he's lost." by Nazlfrag · · Score: 3, Insightful

    The only real benefit of finishing high school is not getting stereotyped by morons like the OP. Myself, I dropped out of high school and started working at 15, as a Lotus Notes developer and network admin. Some people need institutionalized teaching, others find it far too limiting and stifling. If you need an institution to learn something, you really haven't learned anything.

  16. Call 800-369-1409 by MasterOfGoingFaster · · Score: 3, Insightful

    I guess if we call Gateway at 800-369-1409 and say something to the effect that you're not going to buy a f**king Gateway PC because of the way they treated customers like Dennis Sheehan, I wonder if they'll rethink things.

    Unlikely.... But I'm gonna call them anyway.... Just for sport.

    --
    Place nail here >+
  17. Re:When you buy a new PC... by Drachemorder · · Score: 5, Insightful

    A better argument is that since the sale was completed before he was presented with the EULA, you don't have to agree to it, regardless of whatever stupid human tricks the computer makes you do.

  18. Re:When you buy a new PC... by uncoveror · · Score: 5, Insightful

    Even if he could read the EULA, he would never understand it. How can anyone be expected to give informed consent to legalese gibberish? A team of lawyers might not even agree on exactly what it means. All anyone really understands is that we must click on "Yes" or "Agree" to continue. All EULAs should be thrown out in court.

    --
    The Uncoveror: It's the real news.
  19. Re:giving up rights by RealGrouchy · · Score: 3, Insightful

    Get a piece of paper, write "I, [Name], have received [product], from [company], in good condition on [date], signed, so and so."

    When the delivery guy complains, he can tell you what it really is that he wants you to sign.

    - RG>

    --
    Hey pal, this isn't a pleasantforest, so don't waste my time with pleasantries!
  20. Re:When you buy a new PC... by 4e617474 · · Score: 5, Insightful

    In this case, there is a good argument there was not proper notice.

    There's also a good argument that he did nothing to enter into the agreement. If you buy a car, and there's a cap over the ignition from which a sign is hanging saying that you agree to various terms and conditions if you use the car, that's a pretty shitty way to get someone to enter into a contract, but someone can point to the moment where you agreed to it, or at least failed to raise an objection. If there's a stack of papers in the back seat that you've never seen before telling you that you've forfeited all sorts of rights and incurred all sorts of obligations, that's thinner stuff.

    You may be right about "contract iff signature" bullshit in general, but any printed EULA's that were introduced to him only when he received the computer, not during any part of the sale, he didn't sign, didn't mail in, didn't scratch off any of the boxes to see what he won, didn't connect the dots to see what kind of flower they made, they were just foisted upon him without his consideration or consent. It's the same as if Gateway had randomly stopped somebody on the street and handed him a stack of documents that said he could never sue them. That's not a contract. Oh, right. IANAL. I hope that's not a contract.

    --
    Finally modding someone offtopic when they rant about what "Begging the Question" means: priceless.
  21. Re:When you buy a new PC... by asuffield · · Score: 3, Insightful

    I have no idea why people think that one actually has to sign anything to form a contract. Most US states have no such requirement. The closest thing to any such requirement is in the statute of frauds, but the statute of frauds is applied very narrowly (the US doesn't typically like formalities).

    Contracts are formed all the time without signing anything. More often than not, the only questions for a court in a contract between businesses and consumers are: 1) was there proper notice of the terms and 2) are the terms unconscionable?


    While this is true as far as it goes, a contract will under normal circumstances only form in a two-way exchange - in legal parlance, there must be "consideration" for both parties. Since these EULAs usually don't grant anything to the consumer that they did not already have, they cannot be presumed to automatically form at the time of exchange, which is the normal basis for these things in the absence of a signature. Some form of explicit hoop-jumping, such as a signature, is required to get these one-way things to activate. Corporations like to play games with forced "I agree" buttons; their legitimacy is actually quite weak, and judges will often (although not always) void them if the user hasn't done anything "wrong" and is sufficiently aware to make this argument. You can't force somebody into a contract, and any agreement made under duress is invalid (and the "but they could have returned it to the store, so they had a choice" line does not amuse very many judges, particularly since the store is not legally required to take the computer back if there's nothing wrong with it)
  22. Re:"By winning, he's lost." by billcopc · · Score: 4, Insightful

    Self-taught pros are a rare exception, most people would be completely helpless without some sort of organized brainwashing like the kind that happens in western schools. In any case, the classroom teaches social interaction (to some extent). It might result in highly social morons, but at least they're social :P People who are moronic AND antisocial are in tough shape.

    --
    -Billco, Fnarg.com
  23. Re:dubious, even if it "worked" by EdelFactor19 · · Score: 5, Insightful

    yeah, but even if he could SEE and PRESS the button, it still might not be valid. IANAL but many shrink wrap EULA's and licenses have been ruled invalid. Just because they tell you you can't sue them doesn't mean that you can't. There are various rights and protections you have that they can't take away simply by saying "we are taking this right away from you"

    --
    "Jazz isn't dead, it just smells funny" ~Frank Zappa
    EdelFactor
  24. Re:When you buy a new PC... by dgatwood · · Score: 3, Insightful

    Nah, it would be "An electronic contract isn't worth the paper it's written on." The whole point of the joke is that a verbal contract isn't written on paper.

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  25. EULA clauses? by Kaenneth · · Score: 3, Insightful

    So, how do you decline a EULA?

    Do you just send the item back to the seller?, who pays shipping?

    Imagine if a few hundred people each ordered a new PC, and found they disliked the EULA, so returned them all?

  26. Re:Gateway lost. by galorin · · Score: 5, Insightful

    The big loser is Gateway. Now, the company cannot win. Would you buy a Gateway computer after reading the Slashdot article? Not likely. Why anyone who reads /. would buy a Gateway computer before reading this article is beyond me.
  27. Re:When you buy a new PC... by mcvos · · Score: 3, Insightful

    Why is the EULA really needed?

    Because they want more power over the consumer, and that means restricting the consumer even further.

  28. Re:When you buy a new PC... by wfberg · · Score: 4, Insightful

    Finally, EULAs are sometimes just as important to you and "throwing them all out" would be idiotic. They often set out things like your warranty coverage and your rights to use software (your "license") that you otherwise wouldn't have the right. Most importantly, it keeps things CHEAPER for you. If every computer/software company had unlimited liability, you would probably be spending considerably more for your purchases.

    Shennanigans. Commerce has operated without EULAs just fine for centuries. I never sign a contract when I buy something from a supermarket, or even a big ticket item like a fridge, and somehow those companies don't suffer "unlimited liability" claims. Plenty of businesses have general terms and conditions that aren't disguised as contracts, and they're just as valid -- in fact, probably moreso, as they don't pretend to be something they're not.

    Also, tricking people into agreeing to waive their rights is pretty stupid. Even if it were found that a contract was entered into, that sort of term is often thrown out as unreasonable.

    --
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  29. Re:dubious, even if it "worked" by infinite9 · · Score: 4, Insightful

    You can't ... sell yourself into slavery.

    Sure you can. Just carry a credit card balance.

    --
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