Step-Saver Data Systems, Inc. v. Wyse Technology — Quick Summary

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

939 F.2d 91 (3d Cir. 1991)

In Brief

The case of Step-Saver Data Systems, Inc. v.

Key Issue

Whether the additional terms in the box-top license provided by Wyse Technology and TSL became part of the contract under UCC § 2-207, therefore affecting the warranty terms.

The Rule

Under UCC § 2-207, additional terms in acceptance or confirmation forms can become part of the contract unless: (a) the offer expressly limits acceptance to its terms, (b) they materially alter the contract, or (c) objection to them is made within a reasonable time.

Bottom Line

The Third Circuit held that the additional terms in the box-top licenses did not become part of the contract, as they were material alterations and thus were not binding on Step-Saver.

Why It Matters

This case is significant as it clearly illustrates the application and nuances of UCC § 2-207, providing a precedent for how additional terms in non-negotiated forms are treated during contract formation. It serves as a keystone for understanding how courts adjudicate contract disputes involving standard form contracts and when additional terms become binding. The decision underscores the necessity of explicit acceptance of all terms for them to be enforceable, particularly emphasizing the role of material alteration, consent, and reasonable expectation in contract law.

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