Download this Paper Open PDF in Browser

ProCD v. Zeidenberg and Cognitive Overload in Contractual Bargaining

16 Pages Posted: 4 Nov 2009  

Eric A. Posner

University of Chicago - Law School

Date Written: November 3, 2009

Abstract

Judge Frank Easterbrook’s opinion in ProCD v. Zeidenberg has been heavily criticized for ignoring the law and making unrealistic assumptions about the ability of consumers to read and understand contract terms. This contribution to a symposium on Judge Easterbrook’s judicial output argues that the opinion is a classic example of the manipulation of legal doctrine to advance a policy goal - here, enabling sellers to communicate contract terms when buyers’ time and attention are limited. Contrary to the conventional wisdom, Judge Easterbrook implicitly assumes that buyers are fallible, not hyperrational; his doctrinal solution persuasively addresses the problem of cognitive overload while endorsing a valuable business tool - the “terms later” or “rolling” contract - that reduces the cost of transacting.

Keywords: Frank Easterbrook

Suggested Citation

Posner, Eric A., ProCD v. Zeidenberg and Cognitive Overload in Contractual Bargaining (November 3, 2009). University of Chicago Law Review, Vol. 77, No. 4, 2010; U of Chicago Law & Economics, Olin Working Paper No. 492. Available at SSRN: https://ssrn.com/abstract=1499414 or http://dx.doi.org/10.2139/ssrn.1499414

Eric A. Posner (Contact Author)

University of Chicago - Law School ( email )

1111 E. 60th St.
Chicago, IL 60637
United States
773-702-0425 (Phone)
773-702-0730 (Fax)

HOME PAGE: http://www.law.uchicago.edu/faculty/posner-e/

Paper statistics

Downloads
450
Rank
52,418
Abstract Views
2,166