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10 - The Boilerplate Puzzle

Published online by Cambridge University Press:  02 December 2009

Douglas G. Baird
Affiliation:
Harry A. Bigelow Distinguished Service Professor of Law and formerly the Dean, University of Chicago Law School
Omri Ben-Shahar
Affiliation:
University of Michigan, Ann Arbor
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Summary

Editor's Note:In this chapter, Douglas G. Baird argues that boilerplate — like mass-produced product components — should not be considered problematic for the reason it usually is, namely, the absence of meaningful bargaining. By looking at three classic contracts case, Baird suggests that boilerplate terms can hide different types of abuses, such as anticompetitive terms, misrepresentation, and provisions that circumvent mandatory protections. It is not the symptom — the standard-form provision — that is troublesome but rather the substance that it sometimes hides.

The warranty that comes with your laptop computer is one of its many product attributes. The laptop has a screen of a particular size. Its microprocessors work at a particular speed, and the battery lasts a given amount of time between rechargings. The hard drive has a certain capacity and mean time to failure. There is an instruction manual, online technical support (or lack thereof), and software. Then there are the warranties that the seller makes (or does not make) that are also part of the bundle. Just as I know the size of the screen but nothing about the speed of the microprocessor, I know about some of the warranty terms that come with the computer and remain wholly ignorant of others.

With respect to some product attributes, the seller will give buyers a choice of options. For a higher price, I can buy a computer with a bigger screen. But with respect to others, there is no choice.

Type
Chapter
Information
Boilerplate
The Foundation of Market Contracts
, pp. 131 - 142
Publisher: Cambridge University Press
Print publication year: 2007

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  • The Boilerplate Puzzle
    • By Douglas G. Baird, Harry A. Bigelow Distinguished Service Professor of Law and formerly the Dean, University of Chicago Law School
  • Edited by Omri Ben-Shahar, University of Michigan, Ann Arbor
  • Book: Boilerplate
  • Online publication: 02 December 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511611179.013
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  • The Boilerplate Puzzle
    • By Douglas G. Baird, Harry A. Bigelow Distinguished Service Professor of Law and formerly the Dean, University of Chicago Law School
  • Edited by Omri Ben-Shahar, University of Michigan, Ann Arbor
  • Book: Boilerplate
  • Online publication: 02 December 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511611179.013
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • The Boilerplate Puzzle
    • By Douglas G. Baird, Harry A. Bigelow Distinguished Service Professor of Law and formerly the Dean, University of Chicago Law School
  • Edited by Omri Ben-Shahar, University of Michigan, Ann Arbor
  • Book: Boilerplate
  • Online publication: 02 December 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511611179.013
Available formats
×