ITPEC FE Subject A October 2025 Question 60
For a shrink-wrap license, which of the following is the point in time when a software license agreement is concluded?
Explanation
When the package containing the software is opened — with a shrink-wrap licence, breaking the seal counts as accepting the licence terms.
Package software is sold sealed in shrink-wrap film, with the licence terms shown on the package and a statement that opening it means agreeing to them. The licence agreement with the rights holder is therefore concluded at the moment the package is opened. The buyer can read the terms first and return the unopened package if they are not acceptable.
Answer (c)
Why not others:
- •(a) — payment concludes the purchase of the package from the seller, not the licence agreement for using the software
- •(b) — on receipt the package is still sealed, so the terms have not been accepted yet
- •(d) — agreeing during installation by clicking "I agree" on screen is a click-wrap licence, a different mechanism
Key rule: Shrink-wrap means agreement by opening the package; click-wrap means agreement by clicking on screen during installation or download.
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