South Dakota Guidelines for Drafting Shrink Wrap and Click Wrap Agreements Shrink wrap and click wrap agreements have become increasingly prevalent in today's digital age, especially in the realm of e-commerce. South Dakota, like many other states, has guidelines in place to regulate these types of agreements. Understanding these guidelines is crucial for businesses operating in the state to ensure their agreements are legally binding and enforceable. 1. Definition of Shrink Wrap and Click Wrap Agreements Shrink wrap agreements refer to contracts that are enclosed with software or product packaging and are deemed accepted by the user when the product's seal is broken. On the other hand, click wrap agreements are digital contracts presented to users when accessing a website or downloading software, requiring users to indicate acceptance by clicking an "I agree" button or a similar mechanism. 2. Enforceability of Shrink Wrap and Click Wrap Agreements In South Dakota, the enforceability of shrink wrap and click wrap agreements can be impacted by several factors. Provisions that attempt to limit liability, set venue or jurisdiction, or impose arbitration may be subject to scrutiny by the courts. To ensure enforceability, businesses need to have clear and conspicuous language within the agreement and ensure that users have an opportunity to review the terms and conditions before accepting. 3. Disclosure and Conspicuousness of Terms South Dakota places importance on the disclosure and conspicuousness of terms within shrink wrap and click wrap agreements. The terms and conditions must be displayed in a manner that is noticeable to users, ensuring that they are aware of the terms they are accepting. Businesses must make an effort to draw attention to any material or significant terms that may impact the users' rights or obligations. 4. Unreasonable or Unconscionable Terms South Dakota guidelines emphasize that shrink wrap and click wrap agreements should not contain unreasonable or unconscionable terms. These terms can include provisions that heavily favor one party, unreasonably restrict consumer rights, or contradict a state's existing laws. Businesses must carefully review and revise their agreements to avoid including provisions that may be deemed unfair or contrary to public policy. 5. Specific South Dakota Guidelines While there are no specific South Dakota statutes dedicated to shrink wrap and click wrap agreements, businesses should adhere to general contract law principles within the state. This includes providing users with an opportunity to review the terms before accepting, using conspicuous language, and ensuring that the terms are not unreasonably burdensome to the users. In conclusion, South Dakota guidelines for drafting shrink wrap and click wrap agreements aim to protect the rights and interests of consumers while allowing businesses to establish enforceable contracts. Businesses operating in the state should familiarize themselves with these guidelines to ensure compliance and to establish agreements that are legally binding and fair to all parties involved.