Is the Sirius XM Trial Subscription Agreement Enforceable?

Question from jon, Is the Sirius XM Trial Subscription Agreement Enforceable?

Answer from AI:

When it comes to understanding whether a contract is enforceable, there are several key elements that must be present: offer, acceptance, consideration, and mutual intent to be bound. In the scenario described, the enforceability of the Sirius XM trial subscription agreement hinges on whether these elements are satisfied.

Did Sirius Make an Offer Which the Customer Accepted?

To determine if Sirius made an offer that the customer accepted, we can apply a three-part test:

1. Context: The context here is a promotional trial subscription for Sirius XM radio provided with the purchase of a new vehicle. This is a common marketing practice intended to introduce new customers to a service.
2. Presentation: The offer was presented in the form of a sticker over the radio and a message on the screen once the radio service was activated. Both contained information on how to view terms or cancel the service.
3. Reasonableness of the Business Practice: It is a reasonable business practice to offer trial subscriptions to services with new products. However, the terms of the trial should be clear and conspicuous to the consumer.

If a reasonable consumer would understand that using the Sirius XM service would begin a trial subscription that could lead to a paid service unless canceled, then an offer has been made. The customer’s action of using the service could be seen as an acceptance of that offer, especially if the terms were presented in a way that a reasonable person would notice and understand them.

Assuming Sirius Made an Offer the Customer Accepted

If we assume that Sirius made an offer and the customer accepted it by using the service, the next question is whether the customer has a contractual obligation to pay for Sirius after the trial period.

In the United States, the enforceability of such agreements often depends on whether the terms of the agreement were presented in a “conspicuous” manner. This means that the terms should be noticeable to the average customer and not hidden in fine print or obscured in any way. The Uniform Commercial Code (UCC) and various consumer protection laws provide guidance on what constitutes a conspicuous term.

In this case, the customer did not read the sticker or the message on the screen, which both directed them to the terms of the trial subscription. The enforceability of the agreement may depend on whether a court finds that these notices were conspicuous enough to put the customer on notice of the terms.

If the terms were not conspicuous, the customer might argue that they were not adequately informed of the agreement’s conditions, including the need to cancel to avoid charges. If the terms were conspicuous, then the customer’s failure to read them may not be a defense, and the agreement could be enforceable.

It is important for individuals in such situations to consult with a legal professional for personalized advice, as the specifics of the case and local laws will significantly impact the outcome.

For more information on contract law and consumer rights, individuals can refer to resources such as the Federal Trade Commission or their state’s consumer protection office.

In summary, whether the customer has a contractual obligation to pay for Sirius XM after the trial period depends on the presentation and conspicuousness of the terms, the customer’s actions, and the reasonableness of the business practice. Legal advice may be necessary to determine the enforceability of the agreement in this particular case.