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What Is Meant By Wrap Agreement

While much of the attention paid to the negative uses of wrap contracts has focused on data breaches and user content control, other threats are lurking for the unwary consumer (which means for all of us). Wrap contracts can be used to define “rules” or codes of conduct that companies can apply as they see fit. In some cases, they are used to protect users and impose civil standards. Sometimes, however, they can be used to harass users who dare to complain about bad corporate behavior. In August, online consumer assessment company Yelp filed a complaint against a user who accused him of breach of contract. The contract, Yelp`s online terms of use, prohibits the writing of false reviews. Yelp claimed that the user, a bankruptcy firm, had posted false positive reviews to make it good and encouraged others to do the same. The case is unusual because Yelp rarely sues its users because they post fake reviews, even false negative reviews that can harm a business. Instead of taking legal action, Yelp could have simply deleted the notices and banned the law firm from its website.

What Yelp`s complaint removes from the empire of the unusual and in the field of alarming is that McMillan, the law firm that sued Yelp, had previously sued Yelp in a small claims court, claiming that he had been forced to advertise on the site to obtain favorable opinions. The Small Claims Court accepted McMillan and awarded a judgment of $2700 against Yelp. That decision was quashed as part of the appeal process. The reason? Under Yelp`s Wrap contract, the dispute was related to the object. McMillan estimated that the cost of the arbitration under the clause would cost him approximately $4,000-$5,000. Click-through Agreements: Strategies to Avoid Disputes over the Validity of Consent, Kunz, C. L., Del Duca, M. F., Thayer, H., Debrow, J. (2001).

Business Lawyer, 401-429. Although the case law that contains click-through agreements (CTAs) is still not complex, it has developed sufficiently to identify policies and trends in a limited number of cases, which nevertheless help proponents of the transaction to advise clients to use and implement electronic contracts.