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Roger, Attorney
Category: Business Law
Satisfied Customers: 30908
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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My wife and I are the sole owners and employees of a small

Customer Question

My wife and I are the sole owners and employees of a small LLC in New Mexico. We operate our business out of our home.

I recently purchased a license to a software package that includes the following "Audit Right" as part of the End User License Agreement:

SP = The Software Provider

"[The SP] may audit at its own expenses your compliance with regards XXXXX XXXXX use rights of the Software. The auditors will be appointed by [the SP]. Such an audit may only be performed once a calendar year during normal business hours in your place of business [...]"

Can the SP legally request entry into our HOME for such an audit? As we LEGALLY license (pay) for ALL software we use, this issue is not a concern from the point of view of "hiding" anything from the SP. However, this issue concerns me from a PRIVACY point of view since our business is run out of our HOME, i.e. the PRINCIPLE of the Audit Right is disconcerting. Is such a clause in the EULA legal for HOME BUSINESS owners?

Thank you.
Submitted: 6 years ago.
Category: Business Law
Expert:  Roger replied 6 years ago.

You're right you did buy a license to use the software. However, the purchase is contingent on the SP's right to perform an audit.


If you agreed to this at the time of purchase, you technically cannot refuse now. Whether the SP is allowed depends on your contractual agreement.

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