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socrateaser, Attorney
Category: Business Law
Satisfied Customers: 39046
Experience:  Retired (mostly)
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I hired a web design firm to create a website for me. However

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I hired a web design firm to create a website for me. However they turned out to be fraudulent and used their terms of service as a reason to discontinue working and to not issue a refund. according to Paypal, they cannot refund the money either because they only have guarantees on products, not services. I never received what i payed for and am currently filing a lawsuit against both. However i cannot find a correct definition for product and whether the website that they failed to deliver counts as a product by legal definition.
When dealing with a contract dispute, the court looks first for a definition of any contract term to the contract language itself. If there is no express definition, then the court uses the ordinary meaning of the term. This can include a straightforward commercial dictionary reference -- or from a scholarly legal work. Example:

  • “For purposes of this Restatement: [¶] (a) A product is tangible personal property distributed commercially for use or consumption. Other items, such as real property and electricity, are products when the context of their distribution and use is sufficiently analogous to the distribution and use of tangible personal property that it is appropriate to apply the rules stated in this Restatement. [¶] (b) Services, even when provided commercially, are not products. [¶] (c) Human blood and human tissue, even when provided commercially, are not subject to the rules of this Restatement.” (Rest. 3d Torts, Products Liability, § 19.)

Hope this helps.

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