ContractsProf Blog

Best Efforts in Base Ball (Circa 1919)

Speaking of best efforts, consider the following standard-form language from the 1919 contract between "Shoeless" Joe Jackson and the Chicago White Sox (more precisely, Charles Comiskey, who owned the White Sox):

The player agrees to render for the club owner, at such times and places during the term of this contract as the club shall designate, his best services as a ball player; and he agrees to keep himself in the best possible physical condition from the date hereof until the termination of the contract; and a violation of either of the foregoing provisions of this paragraph shall be such a breach of contract as shall entitle the club owner either to terminate this contract forthwith, by written notice, or to suspend the player, by written notice, without pay until the club owner is satisfied that the player is ready, able and willing to resume his services in the manner in this paragraph provided.  The player further agrees that, during the term of this contract, he will not, except with the consent of the American League, engage, either during the American League season or at any other time, in any game or exhibition of base ball, foot ball, basket ball, or other athletic sport, except as herein provided.

Form 1919, American League Player's Contract ¶ 3 (emphasis added).  As baseball-savvy readers and those who heard my presentation at February's Fourth International Conference on Contracts at McGeorge School of Law know, several members of the 1919 Chicago White Sox arguably did not render their best services as ballplayers during the World Series against the Cincinnati Reds.

The final sentence of Paragraph 3, which served to make the player-team contract exclusive on the player's part, also reinforced the effect of Paragraph 9 -- the 1919 version of the so-called "reserve clause," a later version of which former St. Louis Cardinals great Curt Flood unsuccessfully challenged when he was traded to the Philadelphia Phillies after the 1969 season.

Whenever, in the sole judgment of the club owner, it is to the advantage of the club that such action be taken, the club owner may transfer the player to another base ball club and assign the rights and obligations of the club owner hereunder to the owner of such other base ball club ....

Form 1919, American League Player's Contract ¶ 9.

In Flood v. Kuhn, 407 U.S. 258 (1972), the U.S. Supreme Court upheld the reserve clause -- which institutionalized, to paraphrase Flood, well-paid slavery.  But major league baseball's hard-fought victory was fleeting, as the reserve clause met its demise following the 1975 season at the hands of arbitrator Peter Seitz, who ruled in favor of all-star pitchers Andy Messersmith and Dave McNally, declaring them to be "free agents" who could play or refuse to play for any major league baseball team that wanted their services.

[Keith A. Rowley]

Big-Boy Letters

Behold the power of the contract!  Indeed, even federal securities laws genuflect before what Debevoise and Plimpton calls "the product of arms-length negotiations between sophisticated, well-represented parties" (see page 5 of the link, "Do Big-Boy Letters Really Work?").  And what is the product of this negotiation?  In a big-boy letter, a purchaser of securities in a private transaction promises not to sue the seller who may well be in possession of inside information not disclosed to the buyer. 

Well, okay, I can understand why a party that waives its right to sue should not be permitted to sue, but why would a sophisticated institutional investor be so eager to buy something that the insider is eager to dump?  As today's New York Times reports, the buyer may want to flip the securities to a third party, without disclosing the existence of the big-boy letter to that third party.  I'm no securities law expert, but I can't see how this use of big-boy letters is distinguishable from insider trading through a broker.

One case involving big-boy letters is now working its way through the courts, as the New York Times reports.  The R2 hedge fund is suing the Jeffries Group over $20 million worth of bonds that plummeted 30% in value two days after R2 bought them from Jeffries.  Jeffries got the bonds from Smith Barney, which protected itself with a big-boy letter.  The SEC is also reportedly investigating Barclays in connection with its use of big-boy letters. 

[Jeremy Telman]

Books Now Never Go Out of Print

This is news to me, but apparently, before there was the internet, people got information from things called books.  I gather they are like those other outmoded, non-interactive technologies, television and radio, only more boring.

Except, of course, for Stephen Colbert's Alpha Squad 7: Lady Nocturne, A Tek Jansen Adventure.  At left you can see one of many proposed covers for this epic, which for some reason has yet to find its publisher.  Buck up, Stephen, James Joyce had a hard time too! 

Anyhew, according to the New York Times, book contracts used to have a standard term that provided protection to authors should the book go out-of-print.  Under the old standard-form contract, when a book went out-of-print, the author had the right to request a return of rights in the book so that the author could try to interest a different publisher in a new edition.  A book was deemed out-of-print if either: it was no longer available in either hardback or paperback, or if annual sales fell below a certain threshold.

That is no longer the case.  Print-on-demand technology means that books now never go out of print and at least some publishers are therefore less willing to relinquish rights than they used to be.

[Jeremy Telman]

Implied Warranty of Merchantability

We just studied this warranty in my sales class, and this morning I got to contemplate whether and how the concept applied to Trader Joe's brand toilet paper.

[Miriam Cherry]

Post on Contracting in China

Deborah Post (Touro) sent this intriguing message to the AALS contracts listserve, describing some aspects of contracting in China:

Everybody expects to bargain in China.  At the Great Wall, vendors yell at passing tourists, "tee shirts $1."  But, of course, there are no tee shirts for one dollar.  There are tablecloths, kimonos, place mats, chop sticks, fans, sculptures, bamboo hats, tea pots and all other manner of things tourist for sale.  There are tourists willing to buy, thrilled with the prospect of a real bargain and girded for the contest of wills that bargaining represents. 

Tourists buy souvenirs after they have climbed the Great Wall. Vendors outside the exit from the tram and the base of the steps leading up to the Wall have the advantage of location because the purchase of souvenirs is not an exercise in comparison shopping. The best price is obtained by those with the best skills and the greatest speed.  How low can you go with an offer and get the item you want and still make it back to the bus within the allotted time.

Vendors with booths farther down the hill have a variety of competitive strategies.  Pre- ascent they cultivate consumer loyalty: pressing cards into your hand and yelling after you " I remember you, you remember me..."  Post-assent vendors may resort to physical aggression.  A determined seller will
put his body in your way and block your descent.  The better sales have been, the more likely it is that there will be a kind of feeding frenzy by unlicensed vendors.  With postcards and plastic toys in hand, peasant participants in the market economy pursue tourists across parking lots and,
in the extreme case, right onto the buses. 

Bargaining at the Great Wall probably isn't the best example of what a free market economy really means in China.  Even when shopping at a four story mall in Chaoyang, the expat district in Beijing, bargaining is also the dominant form of commercial intercourse. There are prices posted in all the
stalls but the posted price bears no relationship at all to the actual price at which goods will be sold or even the starting point for negotiations. Calculators, the preferred communication devices for cross cultural cash transactions, are whipped out at the moment you pause to examine a silk scarf
or a leather purse.  Come in, come in, said the spider to the fly.  "Best price for you because you are my first customer." 

The absence of a fixed price is disorienting.  I don't like bargaining.  I worry that I am an easy mark: an American just waiting to be parted from her disposable income. I stopped by the costume jewelry counter in to look at what was obviously fake jade.  You don't get real jade earrings for 90 yuen (
approximately $11 U.S.)  I know that, the sales clerk certainly knew that. Yet she insisted that you could see the "jade flowers" if you held the synthetic jade up to the light, which you could not, and that it would cut glass, which it obviously did not.  What was the point of this patently absurd attempt at deception? 

On the other hand, I worry about hard bargaining on my part.  Selling below cost is not rational, but it might be necessary.  You can't buy dumplings with clothes on a rack. So I want to know what a fair price would be.  I want to know how much the seller has to  charge in order to cover costs and  make
a reasonable profit.  My students react with derision.  "You could have gotten those tee shirts for 30 yuen (about 4 dollars)."   I paid 40 yuen (about 5 dollars).  But 40 yuen was the point where I met what I perceived to be real resistance, a palpable reluctance to lower the price further.  In bargaining I am risk averse.  I do not wish to venture into the realm of human desperation.   

It might all even out in the end.  For every U.S. tourist who drives a hardbargain, there is a person like me, the reluctant participant in a global economy who worries about exploitation.  I want to pay a fair price, but I can't tell what a fair price might be.  I want a fair deal when everyone else is intent on getting the best deal --all of which makes me wonder about a market model for contract doctrine.

All the Lonely Baggage, Where Does it All Come From?

So I’ve been doing some travel to conferences recently – first to the spectacular, extraordinary, fabulous first annual International Contracts Conference, and then to Law & Humanities.  On one of these trips, my luggage was lost for about seven hours. 

I’m sad to report that I’m not alone in having had this happen.  A recent study has shown that thirty million bags (some of them conceivably alligator, see message directly below) go missing every year.  But, as a consumer, you do have some recourse if your bag goes astray:

“On domestic flights, the airline baggage liability is capped at $2,800 per person. For international flights, the limit is $9.07 per pound (or $20 per kilogram) for checked baggage, and $400 per person for carry-ons. You may need to produce receipts. If you have them, include copies in any documentation you send to the airline. You can purchase "excess valuation" protection if your checked baggage is worth more than these limits.”

Although I never visited it, there is a store that sells the items from lost bags in Scottsboro, Alabama.  There is also now a website where you can purchase various items.  Just two words for you: Carry On.

[Miriam Cherry]

Run, Alligator, Run!

This weekend's print Wall Street Journal (in its "Pursuits" section) had an interesting article on the use of alligator skin in handbags and designer purses. Apparently, no one knows exactly what the effects of Hurricane Katrina will be on the future supply:

"Big-name designers are jockeying to lock up supplies.  The swamps of Louisiana provide an estimated 85% of the world's gator skins.  Though the harvest was close to normal last fall, state wildlife officials say salt water floods damaged foliage that alligators use to build nests.

Fewer nests could translate to fewer gators laying eggs this summer.  That could reduce the harvest in future years - making it tougher for handbag makers to bag the skins they need...

Now Ralph Lauren is exploring longer-term contracts to ensure access to the skins it needs.  Speculators have bought up extra hides, which local farmers say has pushed prices up.  Other designers are monitoring the market and even switching to crocodile."

Perhaps someone could harvest the alligators that roam the sewers of New York City?  ;)

[Miriam Cherry] 

A Counterfeit Just for Bill Gates

A counterfeiter was caught in California with 250 fake bills.  But these were not your average counterfeit bills, given that each bill was supposedly worth a whopping one billion dollars.  They bore a picture of Grover Cleveland and were ostensibly printed in 1934.

According to the story, “’You would think the $1 billion denomination would be a giveaway that these notes are fake, but some people are still taken in," said James Todak, a secret services agent involved in the probe.”

Er… yeah, most people should know there is no such thing as a billion dollar bill.  But   I’m just wondering what the counterfeiter intended to do with them.  It’s not like he could just go into a normal store and purchase something.  Or ask for change. 

[Miriam A. Cherry]

Long Term Contracts

"Determinants of the Optimal Degree of Pro-activeness in Contracting"

An interesting new paper on whether or not parties should include future contingencies in their contract or not. The abstract states:

Whether or not a contingency or specific clause in a contract should deal with future contingencies depends upon three factors:

- how important any deviation from the fully elaborate contract is in terms of the essential functions served by the contract, including securing efficient risk-allocation, incentives, and reliance investments

-whether the contingency is sufficiently likely and important for it to be worthwhile to spend time on drafting a clause concerning it

- whether something approaching the clause may come about as the result of renegotiation of the contract under the shadow of default rules and contract interpretation by the court (including the possibility of invalidation of unfair contract terms) as well as under the shadow of the parties’ concern for their reputation.

Lando, Henrik, "Determinants of the Optimal Degree of Pro-activeness in Contracting" . http://ssrn.com/abstract=877049

[S Safranek]

Assent on Paper or Electronically

Once again a timely article on an issue near to the heart of consumers at this time of year.

Quoting from the abstract:

"This article takes a critical look at the developing body of cases that address the threshold issue in Internet contracting: the issue of assent."

What is assent in such cases?

"While the Internet is new, the challenges presented by Internet contracts are not. Traditional contract rules, based on the paradigm of two individuals meeting face-to-face to negotiate written terms, have been modified over the years to accommodate diverse methods of communicating contract terms. These modifications have been fashioned to account for the different signals sent to offerees by new methods of contracting.

Today’s courts, however, virtually ignore the fact that the common law of contracts has developed rules that account for the different signals sent by contract terms that are delivered in novel ways. This article argues that courts must consider the cautionary function that the paper contract form has traditionally served and account for the different signals sent by electronic contracts. To support this argument, the article reviews the electronic contracting case law and compares it to older cases addressing the issue of assent when contract terms are delivered by novel methods. The paper then discusses the factual differences between paper and electronic contracts, drawing on computer science and marketing scholarship examining the ways that individuals perceive electronic communications. The paper concludes by suggesting approaches to the assent issue that take these different perceptions into account."

Moringiello, Juliet, "Signals, Assent and Internet Contracting" . Rutgers Law Review, Vol. 57, No. 1307, 2005 http://ssrn.com/abstract=859485

[Stephen Safranek]

A Dubious Milestone

Twenty-two years ago today, in Clearwater, Florida, the first Hooters Restaurant opened for business, proving that you can make money in America selling sex, bad taste, and buffalo wings.  (Left, Hooters Girls entertaining troops in the "Let Freedom Wing" tour.  Photo: Wikipedia Public Domain.)

The controversial chain only hires female servers, who are required, under the employee handbook to “acknowledge and affirm” that:

my job duties require I wear the designated Hooters Girl uniform.

my job duties require that I interact with and entertain the customers.

the Hooters concept is based on female sex appeal and the work environment is one in which joking and sexual innuendo based on female sex appeal is commonplace.

I do not find my job duties, uniform requirements, or work environment to be offensive, intimidating, hostile, or unwelcome.

Excerpt from the Hooters employee handbook are available on The Smoking Gun.

[Frank Snyder]

Let's be clear here

For those who complain that companies are often bad about hiding the bad terms in a contract, the NASDAQ stock exchange is refreshingly blunt.  Here are the headnotes to the contract you ("Subscriber") must sign to subscribe to its real-time quote service through your own brokerage firm ("Vendor"):

DISCLOSURE – PLEASE READ
Subscribers must sign a contract entitled The Nasdaq Stock Market, Inc. (“Nasdaq”) Subscriber Agreement ("Agreement") in order to receive Information [see definition in Paragraph [1] of the Agreement] from Nasdaq. While all terms are important, please particularly note the following. For more information regarding each term, the paragraph number at the end of each term refers to the paragraph in the Agreement where more information can be located.

RESTRICTIONS ON USES & TRANSFER: Subscribers may not provide access to Information or transfer the Agreement to others. The Information is only for personal non-professional use or, if you are a Professional Subscriber (see definition in Paragraph [1] of the Agreement) for internal business use and/or personal use. [Paragraph 3]

MOST TYPES OF DAMAGES ARE EXCLUDED AND REMAINING DAMAGES ARE LIMITED: Nasdaq is not liable for trading losses, lost profits or incidental, consequential or other indirect damages, even if the Information is untimely or incorrect. Other damages (if any), are strictly limited (in contract, tort, or otherwise) to a capped amount. [Paragraphs 9 and 10]

NO IMPLIED OR STATUTORY WARRANTIES OR DUTIES: All warranties and duties (if any) are eliminated. There are no express warranties except for a Limited Warranty regarding efforts only. STOCK QUOTES MIGHT NOT BE CURRENT OR ACCURATE. [Paragraph 9]

SUBSCRIBERS PROVIDE AN INDEMNITY: Subscriber indemnifies and holds harmless Nasdaq for any Claims or Losses (see definition in Paragraph [1] of the Agreement) resulting from Subscriber’s breach of the Agreement, for Subscriber’s infringement of a third party's intellectual property rights, or from any third party suit related to Subscriber’s use or receipt of the Information. [Paragraph 13 and 14]

MARYLAND LAWS AND COURTS APPLY: Everything relating to the Agreement is governed by the laws of the United States and the State of Maryland and any disputes can only be heard in Maryland. [Paragraph 23]

NO ORAL AMENDMENTS & ONLY NASDAQ MAY AMEND: The Agreement may not be altered orally and may be altered by Nasdaq pursuant to an Agreement procedure which includes notice either to Subscriber or to Vendor. Failure to terminate the Agreement before, or use of Information after, an amendment will be Subscriber’s consent (or confirmation of an earlier consent) to the amendment. [Paragraph 17 and 21]

VENDORS CAN IMPACT SUBSCRIBER’S RIGHTS BUT NOT NASDAQ’S RIGHTS: Vendor does not have authority to change the Agreement. Vendors are obligated to provide notice of Nasdaq changes to Subscriber, but if they do not, Nasdaq’s notice to Vendor is still effective, as to Subscriber including notice of cancellation. [Paragraph 1 and Paragraph 17]

The detailed text of the agreement can be found by clicking on "continue reading."

1.  The word "Nasdaq" means The Nasdaq Stock Market, Inc. and its affiliates. The word "Information" means certain data and other information: relating to securities or other financial instruments, products, vehicles or devices; or relating to Persons regulated by Nasdaq or to activities of Nasdaq; or gathered by Nasdaq from other sources. The word "or" includes the word "and". The phrase "Claims or Losses" means any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, judgments, settlements, and expenses of whatever nature, whether incurred by or issued against an indemnified party or a third party, including, without limitation, (1) indirect, special, punitive, consequential or incidental loss or damage, (including, but not limited to, trading losses, loss of anticipated profits, loss by reason of shutdown in operation or increased expenses of operation, or other indirect loss or damage) and (2) administrative costs, investigatory costs, litigation costs, and auditors' and attorneys' and fees and disbursements (including in-house personnel). The word "Person" means any natural person, proprietorship, corporation, partnership, or other entity whatsoever. The phrase "Non-Professional Subscriber" means any natural person who is neither: 
      
  (a)  registered or qualified in any capacity with the SEC, the Commodities Futures Trading Commission, any state securities agency, any securities exchange or association, or any commodities or futures contract market or association; 
      
  (b)  engaged as an "investment advisor" as that term is defined in Section 201 (11) of the Investment Advisors Act of 1940 (whether or not registered or qualified under that Act); nor, 
      
(c)  employed by a bank or other organization exempt from registration under federal or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt. 
      
  The phrase "Professional Subscriber" means all other persons who do not meet the definition of Non-Professional Subscriber. When it appears alone, the word "Subscriber" encompasses all Non-Professional and Professional Subscribers. The phrase "Vendor's Service" means the service from a vendor, including the data processing equipment, software, and communications facilities related thereto, for receiving, processing, transmitting, using and disseminating the Information to or by Subscriber. 
      
2.  Subscriber is granted the right to receive from Nasdaq the Information under the terms stated herein or in the NASD Rules. 
      
  "NASD Rules" shall mean all applicable laws (including intellectual property, communications, and securities laws), statutes, and regulations, the rules and regulations of the SEC, the rules and regulations of Nasdaq including, but not limited to, those requirements established by Nasdaq's rule filings (with such SEC approval as may be required), Nasdaq's decisions and interpretations and any User Guides, or successors of the components of the NASD Rules, as they may exist at the time. For Professional Subscriber, if any payment is due directly to Nasdaq under this Agreement, payment in full is due Nasdaq in immediately available U.S. funds, within 30 days of the date of an invoice, whether or not use is made of, or access is made to, the Information. Interest shall be due from the date of the invoice to the time that the amount(s) that are due have been paid. Subscriber shall assume full and complete responsibility for the payment of any taxes, charges or assessments imposed on Subscriber or Nasdaq (except for U.S. federal, state, or local income taxes, if any, imposed on Nasdaq) by any foreign or domestic national, state, provincial or local governmental bodies, or subdivisions thereof, and any penalties or interest, relating to the provision of the Information to Subscriber. 
      
3.  The Information is licensed only for the personal use of the Non-Professional Subscriber and the internal business use and/or personal use of the Professional Subscriber. By representing to Vendor that Subscriber is a non-professional, or by continuing to receive the Information at a non-professional subscriber rate, Subscriber is affirming to Vendor and Nasdaq that Subscriber meets the definition of Non-Professional Subscriber as set forth in paragraph 1 above. Subscriber will promptly give written notice to Vendor of any change in the name or place of residence or place of business at which the Information is received. Subscriber may not sell, lease, furnish or otherwise permit or provide access to the Information to any other Person or to any other office, or place. Subscriber will not engage in the operation of any illegal business; use or permit anyone else to use the Information, or any part thereof, for any illegal purpose; or violate any NASD Rule. Professional Subscribers may, on a non-continuous basis, furnish limited amounts of the Information to customers: in written advertisements, correspondence, or other literature; or during voice telephonic conversations not entailing computerized voice, automated information inquiry systems, or similar technologies. Subscriber may not present the Information rendered in any unfair, misleading, or discriminatory format. Subscriber shall take reasonable security precautions to prevent unauthorized Persons from gaining access to the Information. 
      
4.  Subscriber acknowledges that Nasdaq, in its sole discretion, may from time to time make modifications to its system or the Information. Such modifications may require corresponding changes to be made in Vendor's Service. Changes or the failure to make timely changes by Vendor or Subscriber may sever or affect Subscriber's access to or use of the Information. Nasdaq shall not be responsible for such effects. 
      
5.  Nasdaq grants to Subscriber a nonexclusive, non-transferable license during the term of the Agreement to receive and use the Information transmitted to it by Vendor and thereafter to use such Information for any purpose not inconsistent with the terms of the Agreement or with the NASD Rules. Subscriber acknowledges and agrees that Nasdaq has proprietary rights in the Information that originates on or derives from markets regulated or operated by Nasdaq and compilation or other rights in Information gathered from other sources. Subscriber further acknowledges and agrees that Nasdaq's third party Information providers have exclusive proprietary rights in their respective Information. In the event of any misappropriation or misuse, Nasdaq or its third party information providers shall have the right to obtain injunctive relief for its respective materials. Subscriber will attribute source as appropriate under all the circumstances. 
      
6.  Subscriber acknowledges that Nasdaq, as a subsidiary of NASD, when required to do so by NASD in fulfillment of NASD's statutory obligations, may by notice to Vendor unilaterally limit or terminate the right of any or all Persons to receive or use the Information, and that Vendor will immediately comply with any such notice and will terminate or limit the furnishing of the Information and confirm such compliance by notice to Nasdaq. Any affected Person will have available to it such procedural protections as are provided by the Exchange Act and applicable rules thereunder. Neither Nasdaq nor NASD shall have any liability when complying with such NASD notice. 
      
7.  Professional Subscriber shall make its premises available to Nasdaq for physical inspection of Vendor's Service and of Professional Subscriber's use of the Information (including review of any records regarding use of, or access to, the Information and the number and locations of all devices that receive Information), all at reasonable times, upon reasonable notice, to ensure compliance with this Agreement. Non-professional Subscriber shall comply promptly with any reasonable request from Nasdaq for information regarding the Non-Professional Subscriber’s receipt, processing, display and redistribution of the Information. 
      
8.  To the extent permitted by applicable law, Subscriber acknowledges and agrees that the termination of the Vendor's Service for failure to make payments shall not be deemed or considered to be, and Subscriber waives any right to represent or assert that any such exercise constitutes, an act or omission or an improper denial or limitation of access by Nasdaq to any service or facility operated by Nasdaq as contemplated in Section 11A of the Exchange Act, or any other provision of the Exchange Act, or any rule, regulation, or interpretation adopted thereunder. 
      
9.  NASDAQ'S WARRANTIES/DISCLAIMER OF WARRANTIES. NASDAQ SHALL ENDEAVOR TO OFFER THE INFORMATION AS PROMPTLY AND ACCURATELY AS IS REASONABLY PRACTICABLE. IN THE EVENT THAT THE INFORMATION IS NOT AVAILABLE AS A RESULT OF A FAILURE BY NASDAQ TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT, NASDAQ WILL ENDEAVOR, GIVING DUE REGARD FOR THE COST, TIME, AND EFFECT ON OTHER USERS, TO CORRECT ANY SUCH FAILURE. IN THE EVENT THAT THE INFORMATION IS NOT AVAILABLE, IS DELAYED, IS INTERRUPTED, IS INCOMPLETE, OR IS NOT ACCURATE OR IS OTHERWISE MATERIALLY AFFECTED FOR A CONTINUOUS PERIOD OF FOUR (4) HOURS OR MORE DURING THE TIME THAT NASDAQ REGULARLY TRANSMITS THE INFORMATION DUE TO THE FAULT OF NASDAQ (EXCEPT FOR A REASON PERMITTED IN THIS AGREEMENT OR IN NASDAQ'S AGREEMENT WITH THE VENDOR), SUBSCRIBER'S OR ANY OTHER PERSON'S EXCLUSIVE REMEDY AGAINST NASDAQ SHALL BE 
      
  (A)  IF SUBSCRIBER OR ANY OTHER PERSON CONTINUES TO RECEIVE THE INFORMATION OR ANY OTHER DATA AND/OR INFORMATION OFFERED BY NASDAQ, A PRORATED MONTH'S CREDIT OF ANY MONIES DUE, IF ANY, FOR THE AFFECTED INFORMATION DIRECTLY TO NASDAQ FROM SUBSCRIBER, OR, IF APPLICABLE, FROM SAID OTHER PERSON, FOR THE PERIOD AT ISSUE OR, 
      
  (B)  IF SUBSCRIBER OR ANY OTHER PERSON NO LONGER RECEIVES EITHER THE INFORMATION OR ANY OTHER DATA AND/OR INFORMATION OFFERED BY NASDAQ, A PRORATED MONTH'S REFUND OF ANY MONIES DUE FOR THE AFFECTED INFORMATION DIRECTLY TO NASDAQ FROM SUBSCRIBER, OR, IF APPLICABLE, FROM SAID OTHER PERSON, FOR THE PERIOD AT ISSUE.   
      
  SUCH CREDIT OR REFUND SHALL, IF APPLICABLE, BE REQUESTED BY WRITTEN NOTICE TO NASDAQ WITH ALL PERTINENT DETAILS. BEYOND THE WARRANTIES STATED IN THIS SECTION, THERE ARE NO OTHER WARRANTIES OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY (INCLUDING, WITHOUT LIMITATION, TIMELINESS, TRUTHFULNESS, SEQUENCE, COMPLETENESS, ACCURACY, FREEDOM FROM INTERRUPTION), ANY IMPLIED WARRANTIES ARISING FROM TRADE USAGE, COURSE OF DEALING, OR COURSE OF PERFORMANCE, OR THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE. 
      
10.  NASDAQ’S LIMITATION OF LIABILITY. 
      
  (A)  EXCEPT AS MAY OTHERWISE BE SET FORTH HEREIN, NASDAQ SHALL NOT BE LIABLE TO SUBSCRIBER, ITS VENDOR OR ANY OTHER PERSON FOR INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL, OR INCIDENTAL LOSS OR DAMAGE (INCLUDING, BUT NOT LIMITED TO, TRADING LOSSES, LOSS OF ANTICIPATED PROFITS, LOSS BY REASON OF SHUTDOWN IN OPERATION OR INCREASED EXPENSES OF OPERATION, COST OF COVER, OR OTHER INDIRECT LOSS OR DAMAGE) OF ANY NATURE ARISING FROM ANY CAUSE WHATSOEVER, EVEN IF NASDAQ HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
      
  (B)  NASDAQ SHALL NOT BE LIABLE TO SUBSCRIBER OR ANY OTHER PERSON FOR ANY UNAVAILABILITY, INTERRUPTION, DELAY, INCOMPLETENESS, OR INACCURACY OF THE INFORMATION THAT LASTS LESS THAN FOUR (4) CONTINUOUS HOURS DURING THE TIME THAT NASDAQ REGULARLY TRANSMITS THE INFORMATION OR IF THE INFORMATION IS MATERIALLY AFFECTED FOR LESS THAN FOUR (4) CONTINUOUS HOURS DURING THE TIME THAT NASDAQ REGULARLY TRANSMITS THE INFORMATION. 
      
  (C)  IF NASDAQ IS FOR ANY REASON HELD LIABLE TO SUBSCRIBER OR TO ANY OTHER PERSON, WHETHER IN TORT OR IN CONTRACT, THE LIABILITY OF NASDAQ WITHIN A SINGLE YEAR (FROM THE EFFECTIVE DATE OF THE AGREEMENT) OF THE AGREEMENT [COMBINED WITH THE TOTAL OF ALL CLAIMS OR LOSSES OF SUBSCRIBER'S VENDOR, AND ANY OTHER PERSON CLAIMING THROUGH, ON BEHALF OF, OR AS HARMED BY SUBSCRIBER] IS LIMITED TO AN AMOUNT OF SUBSCRIBER’S DAMAGES THAT ARE ACTUALLY INCURRED BY SUBSCRIBER IN REASONABLE RELIANCE, AND WHICH AMOUNT DOES NOT EXCEED THE LESSER OF: (I) IF SUBSCRIBER OR ANY OTHER PERSON CONTINUES TO RECEIVE THE INFORMATION OR ANY OTHER DATA AND/OR INFORMATION OFFERED BY NASDAQ, A PRORATED MONTH'S CREDIT OF ANY MONIES DUE DIRECTLY TO NASDAQ FROM SUBSCRIBER, OR, IF APPLICABLE, FROM ANY OTHER PERSON, FOR THE INFORMATION AT ISSUE DURING THE PERIOD AT ISSUE OR, IF SUBSCRIBER OR ANY OTHER PERSON NO LONGER RECEIVES EITHER THE INFORMATION OR ANY OTHER DATA AND/OR INFORMATION OFFERED BY NASDAQ, A REFUND OF ANY MONIES DUE DIRECTLY TO NASDAQ FROM SUBSCRIBER, OR, IF APPLICABLE, FROM ANY OTHER PERSON, FOR THE INFORMATION AT ISSUE DURING THE PERIOD AT ISSUE; OR (II) $500.00. 
      
  (D)  THIS SECTION SHALL NOT RELIEVE NASDAQ, SUBSCRIBER OR ANY OTHER PERSON FROM LIABILITY FOR DAMAGES THAT RESULT FROM THEIR OWN GROSS NEGLIGENCE OR WILLFUL TORTIOUS MISCONDUCT, OR FROM PERSONAL INJURY OR WRONGFUL DEATH CLAIMS. 
      
  (E)  SUBSCRIBER AND NASDAQ UNDERSTAND AND AGREE THAT THE TERMS OF THIS SECTION REFLECT A REASONABLE ALLOCATION OF RISK AND LIMITATION OF LIABILITY. 
      
11.  THIRD PARTY INFORMATION PROVIDERS' DISCLAIMERS OF WARRANTIES/LIMITATIONS OF LIABILITIES. NASDAQ'S THIRD PARTY INFORMATION PROVIDERS MAKE NO WARRANTIES OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY (INCLUDING, WITHOUT LIMITATION, TIMELINESS, TRUTHFULNESS, SEQUENCE, COMPLETENESS, ACCURACY, FREEDOM FROM INTERRUPTION), ANY IMPLIED WARRANTIES ARISING FROM TRADE USAGE, COURSE OF DEALING, OR COURSE OF PERFORMANCE, OR THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE AND THEY SHALL HAVE NO LIABILITY FOR THE ACCURACY OF, OR FOR DELAYS OR OMISSIONS IN, ANY OF THE INFORMATION PROVIDED BY THEM. NASDAQ'S THIRD PARTY INFORMATION PROVIDERS SHALL ALSO HAVE NO LIABILITY FOR ANY DAMAGES, WHETHER DIRECT OR INDIRECT, WHETHER LOST PROFITS, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OF THE SUBSCRIBER OR ANY OTHER PERSON SEEKING RELIEF THROUGH SUBSCRIBER, EVEN IF THE THIRD PARTY INFORMATION PROVIDERS HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT WILL THE LIABILITY OF THE THIRD PARTY INFORMATION PROVIDERS OR THEIR AFFILIATES TO SUBSCRIBER OR ANY OTHER PERSON SEEKING RELIEF THROUGH SUBSCRIBER PURSUANT TO ANY CAUSE OF ACTION, WHETHER IN CONTRACT, TORT, OR OTHERWISE, EXCEED THE FEE PAID BY SUBSCRIBER OR ANY OTHER PERSON SEEKING RELIEF THROUGH SUBSCRIBER, AS APPLICABLE. 
      
12.  Notwithstanding any other term or condition of this Agreement, Nasdaq, its third party information providers or Subscriber shall not be obligated to perform or observe their respective obligations undertaken in this Agreement (except for obligations to make payments hereunder and regulatory obligations) if prevented or hindered from doing so by any circumstances found to be beyond their control. 
      
13.  Subscriber will indemnify and hold harmless Nasdaq and its employees, officers, directors, and other agents from any and all Claims or Losses imposed on, incurred by or asserted as a result of or relating to: 
      
  (a)  any noncompliance by Subscriber with the terms and conditions hereof; 
      
  (b)  any third-party actions related to Subscriber's receipt and use of the Information, whether authorized or unauthorized under the Agreement. 
      
14.  Each party warrants and represents and will indemnify and hold harmless (and in every case, Nasdaq shall be permitted to solely defend and settle) another party (including Nasdaq) and their officers, directors, employees, and other agents, against any Claims or Losses arising from, involving, or relating to a claim of infringement or other violation of an intellectual property right by the indemnifying party, its actions or omissions, equipment, or other property. This right is conditioned on the indemnified party giving prompt written notice to the indemnifying party (as does not prejudice the defense) of the Claims or Losses and providing cooperation in the defense of the Claims or Losses (without waiver of attorney-client, work-product or other legal privilege, or disclosure of information legally required to be kept confidential). 
      
15.  Subscriber agrees that Nasdaq may enforce the terms of this Agreement against any Person, whether or not Vendor or Subscriber is a party to any such action or against Subscriber itself. In any action there shall be available injunctive relief or damages, with the prevailing party being awarded costs and attorneys' fees (including in-house counsel). 
      
16.  In the event of any conflict between the terms of this Agreement and of the Vendor's agreement, the terms of this Agreement shall prevail as between Nasdaq and Subscriber. 
      
17.  In addition to terminations permitted under the Vendor's agreement, this Agreement may be terminated by Subscriber on 30 days written notice to Vendor and by Nasdaq on 30 days written notice either to Vendor or Subscriber. Nasdaq may also alter any term of this Agreement on 60 days written notice either to Vendor or Subscriber, and any use after such date is deemed acceptance of the new terms. In the event of Subscriber breach, discovery of the untruth of any representation of Subscriber, or where directed by NASD in its regulatory authority, Nasdaq may terminate this Agreement on not less than three (3) days written notice to Subscriber provided either by Nasdaq or Vendor. 
      
18.  Nasdaq does not endorse or approve any equipment, Vendor, or Vendor's Service. 
      
19.  Natural persons executing this Agreement warrant and represent that they are at least eighteen (18) years of age. Subscriber and the Person executing this Agreement on behalf of Subscriber which is a proprietorship, corporation, partnership or other entity, represent that such Person is duly authorized by all necessary and appropriate corporate or other action to execute the Agreement on behalf of Subscriber. 
      
20.  All notices, invoices, and other communications required to be given in writing under this Agreement shall be directed to: 
      
  The Nasdaq Stock Market, Inc.
1735 K Street, NW
Washington, DC 20006
Attn.: Manager, Trading and Market Services 
      
  or to Subscriber at the last address known to the Vendor, and shall be deemed to have been duly given upon actual receipt by the parties, or upon constructive receipt if sent by certified mail, postage pre-paid, return receipt requested, at such address or to such other address as any party hereto shall hereafter specify by written notice to the other party or parties hereto. 
      
21.  Except as otherwise provided herein, no provision of this Agreement may be amended, modified, or waived, unless by an instrument in writing executed by a duly authorized signatory of the party against whom enforcement of such amendment, modification, or waiver is sought. No failure on the part of Nasdaq or Subscriber to exercise, no delay in exercising, and no course of dealing with respect to any right, power, or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or privilege preclude any other or further exercise thereof or the exercise of any other right, power, or privilege under this Agreement. If any of the provisions of this Agreement, or application thereof to any Person or circumstance, shall to any extent be held invalid or unenforceable, the remainder of this Agreement, or the application of such terms or provisions to Persons or circumstances other than those as to which they are held invalid or unenforceable, shall not be affected thereby and each such term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 
      
22.  The terms of this Agreement apply to those obligations that survive any cancellation, termination, or rescission, namely, obligations relating to intellectual property, indemnification, limitation of liability, warranties, disclaimer of warranties, and Exchange Act related provisions. 
      
23.  This Agreement shall be deemed to have been made in the United States in the State of Maryland and shall be construed and enforced in accordance with, and the validity and performance hereof shall be governed by, the laws of the State of Maryland, without reference to principles of conflicts of laws thereof. Subscriber hereby consents to submit to the jurisdiction of the courts of or for the State of Maryland in connection with any action or proceeding instituted relating to this Agreement. 

Does the UCC apply to souls?

From the law student blog You Must Be Present to Win, a video rental store receipt with a real kicker . . . .

Paula Abdul's very broad force majeure clause

If singer/dancer Paula Abdul’s flight gets canceled or she gets sick and misses a concert, she may be entitled to be paid by the promoter anyway, as long as it’s not her fault.

An odd force majeure clause in her tour contract provides:

In the event that ARTIST is unable to perform during the period of time specified in the Contract due to no fault of her own, ARTIST shall be paid the full compensation agreed upon without the necessity of ARTIST’S performing.

Nothing spells "romance" like a notarized contract signed by the lawyers

One of the more unusual recent celebrity contracts is the "faux marriage" agreement between singer Britney Spears and Kevin Federline (together, left).  Apparently unable to hammer out the terms of a prenuptial agreement before the date set for their actual marriage, the pair agreed to go through a "faux" wedding ceremony without a license.  Under the agreement, each acknowledges that he/she understands that no real marriage is taking place, and each agrees that he/she will not in the future make any contrary claim.

The pair ultimately got the dowry issues worked out and were "really" married three weeks later. The prenup, among other things, provides that Spears will have no obligations to Federline’s two existing children should the couple divorce. That should certainly endear their new stepmother to the little darlings.