Lead Opinion
We consider an internet website’s forum selection clause.
Background
Aрpellant used ServiceMagic’s website, which offered free referrals to prescreened construction contractors, to search for someone to remodel her Springfield, Missouri home. That website process involved a seriеs of computer screens or web pages. Appellant entered project information on the first page, clicked to the next page, entered more information, and so on. Each page was hyperlinked
Appellant did not look at these terms while using the website. Eventually, a pop-up screеn (“We’re Matching Your Project to Top-Rated Pros in Springfield, MO”) was followed by a new page stating that Appellant’s project had been matched to four prescreened professionals. There were spaces for Appellаnt to enter her contact information, followed by a “Submit for Matching Pros” button. Next to the button was a blue hyperlink to the website terms and this notice: “By submitting you agree to the Terms of Use.”
Still without checking the website terms, Appellant clicked the “Submit for Matching Prоs” button and got a list which included co-defendants McCallister and Ka-lupto Creations. Appellant contracted with them, but later became dissatisfied and sued all defendants in Greene County, Missouri. Citing its forum selection clause, ServiceMagic was dismissed from the case and Appellant filed this appeal.
We should honor the forum selection clause unless it is unfair or unreasonable to do so. Burke v. Goodman,
Appellant raises two issues: (1) can she be said to have assented to the website terms; and (2) does the forum selection clause reach her tort claims?
Assent to Website Terms
Appellant denies assenting to the forum selection clause. She claims thе notice of website terms was inadequate and no “click” was required to accept them. Her argument focuses on two types of electronic form agreements: “click-wraps” and “browsewraps.”
The legal effect of online agrеements may be “an emerging area of the law,” but courts still “apply traditional principles of contract law and focus on whether the plaintiff had reasonable notice of and manifested assent to the online agreement.” Burcham v. Expedia, Inc.,
Assent is manifеsted expressly on click-wrap sites, usually by clicking a box or button (e.g., “I Agree”). Hotels.com, L.P. v. Canales,
Appellant criticizes ServiceMagic’s use of a browsewrap instead of a clickwrap, and argues primarily from Specht, in which the plaintiffs downloaded free software from Netscape’s website. The license terms (including an arbitration clause) were not referenced on the software download screen, but could be seen only by scrolling down to another screen. Since Netscape’s browsewrap “did not carry an immediately visible notice of the existence of license terms,” the court refused to enforce them.
By contrast, ServiceMagic did put “immediately visible notice of the existence of license terms” — i.e., “By submitting you agree to the Terms of Use” and a blue hyperlink — right next to the button that Appellant pushed. A second link to those terms was visible on the same page without scrolling, and similar links were on every оther website page. “Failure to read an enforceable online agreement, as with any binding contract, will not excuse compliance with its terms. A customer on notice of contract terms available on the internet is bound by those terms.” Burc-ham,
Appellant also cites clickwrap cases Burcham and Feldman, seemingly for the point that clickwraps are better for proving assent. Maybe so, but there is no fundamental reason “why the enforceability of the offeror’s terms should depend on whether the taker states (or clicks) T agree.’ ” Register.com, Inc. v. Verio, Inc.,
*230 While new commerce on the Internet has exposed courts to many new situations, it has not fundamentally changed the principles of contract. It is standard contract doctrine that when a benefit is offered subject to stated conditions, and the offeree makes a decision to take the benefit with knowledge of the terms of the offer, the taking constitutes an acceptance of the terms, which accordingly become binding on the offeree.
Forum Selection Clause and Tort Claims
Appellant also claims that “this Court held in Service Vending Co. v. Wal-Mart Stores, [
We did not so hold or establish any per se rule in Service Vending,
We made similar findings in Service Vending. “SVC did not sue Wal-Mart on the basis of the parties’ contract.”
Appellant’s claims differ from those in Greenwood and Service Vending. All three of her counts allege that ServiceM-agic breached its website representations. Appellant’s fraud and negligence claims repeatedly cite such representаtions and assert that ServiceMagic did not comply with them or properly prescreen the co-defendants as the website promised. Her final count alleges that ServieeMagic’s website “employed deception, fraud, false prоmise, and misrepresentation” in violation of Missouri’s Merchandising Practices Act.
Generally speaking, whether a forum selection clause that by its terms applies to contract actions also reaches non-contract claims “deрends on whether resolution of the claims relates to interpretation of the contract.” Manetti-Farrow, Inc. v. Gucci America, Inc.,
. The essential issue here is the same as in many cases: Does the contract clause under, consideration — be it arbitration, forum selection, or some other provision— apply to or reach the conduct or action in question? Although that answer was “no” in Greenwood and Service Vending, here it is “yes.” Thus, we deny this point as well, and affirm the trial court’s judgment of dismissal.
Notes
. A hyperlink electronically provides direct access from one internet location/file to another, typically by clicking a highlighted word or icon. An online reference work, fоr example, may hyperlink words or terms in its text to their respective definitions.
. See Missouri Court Rule 74.01(b) (2009). A dismissal without prejudiсe generally is not final or appealable because the claim can be refiled, but the practical effect of this ruling was to bar Appellant from litigating in her chosen forum state. Burke v. Goodman,
. Appellant's points are not substantially in the form prescribed by Rule 84.04(d)(1), but we exercise our discretion to address her contentions as we understand them.
. These terms seem to derive from software "shrinkwrap” licenses, which purport to become effective when a purchaser removes the cеllophane shrinkwrap and opens the software package. See Specht v. Netscape Communications Corp.,
. Stated by the same Second Circuit that, two years earlier, decided the Specht case cited by Appellant.
. Indeed, in dicta we indicated that tort claims would have been covered by "concise languagе to that effect” (
. There are two aspеcts of unconscionability: procedural unconscionability and substantive unconscionability. Procedural unconsciona-bility concerns the formalities of making the contract, while substantive unconscionability concerns the terms of the contract itself. State ex rel. Vincent v. Schneider,
Concurrence Opinion
concurs.
I concur in the result. The trial court, after conducting a hearing, found that the parties agreed to a venue provision.
I write this separate opinion to note thаt the same contract principles hold on the internet. When the consumer is presented with a contract of adhesion containing lengthy provisions and hidden terms, I believe courts should consider whether the process of assent or terms of the contract are unconscionable.
. While we were not provided with a transcript of the hearing and the judgment is devoid of factual findings, inherent in the judgment is the determination that Appellant had at least constructive notice of ServiceM-agic’s terms.
