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Apple requiring 'Purchase Agreement' not to export or unlock iPhones?

P

patrickvanzandt

macrumors regular
Original poster
Sep 19, 2007
100
0
U.S.A.
I was at the Apple Store in the Mall of America in Bloomington, MN this morning. I asked for 3 iPhones, and was informed that I must sign an agreement not to export or resell them, titled "Short-Term Purchase Agreement" (see attachment). I refused to sign, saying that it was too much legal language for me. I asked if I could still buy 1 or 2 iPhones, and was told that you can buy up to 2 without signing. Interesting....

This is compared to yesterday when I went to the Apple Store in Rosedale Center in Roseville, MN (about 25 miles from the Mall of America store). I asked for 6, and was told I could only have 4. The salesperson then disappeared in to the back room for 15 minutes (literally!), and came back with 3. She explained that "there is a new policy which I just learned about: a maximum of 3 iPhones, and absolutely no cash sales. You must put it on a credit card".

Either Apple's policies are changing on a daily basis, or there is a lack on consistency between stores. In any case, I was quite surprised when the Mall of America store pulled out the attached contract (which, by the way, they were not too happy about me leaving the store with a copy of it -- but I insisted that if they were going to ask me to sign it that I ought to have the right to take a copy home to review more thoroughly, or even with a lawyer if I so chose).
 

Attachments

  • AppleAgreement1.jpg
    AppleAgreement1.jpg
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Don't worry, in some states the binding contract in unenforceable if both parties don't have copies.

I know here in Arizona, they've killed some big cases because one party never received their copy of a contract.
 
I'm glad you insisted on taking the contract with you, as you do have the right to read and consider all options before signing.

The contract itself is interesting to me. In a way, you could easily drive within a 15 minute radius and buy two iPhones from every Apple Store and ATT store and get as many iPhone as you want. I'm not sure what the contract achieves.
 
That change (3 iPhone max, no cash) was announced in several articles. I think Apple wants to shut down third party speculators and exporters as well as save iPhones for the crunch Holiday season.
 
And by credit card they also mean debit card as well right? Are they looking for a way to track people that buy the phone? What happens if I buy an Apple gift card then turn right around and buy the phone with the gift card?
 
diamond.g said:
And by credit card they also mean debit card as well right? Are they looking for a way to track people that buy the phone? What happens if I buy an Apple gift card then turn right around and buy the phone with the gift card?
Click to expand...

Yes, debit cards are accepted as well (a friend at the Mall of America store with me this morning used a Visa Check Card to buy 2 iPhones). And my assumption is that like you suggested, they want to be able to track who buys how many phones. I understand the purpose, but yet I'm still amazed that if I walk into an Apple store with $400 in U.S. currency Apple will refuse to sell me an iPhone. Sure, most everyone has plastic these days, but you'd be surprised how many don't.

And yet one more permutation: a friend of mine just visited the Southdale Apple Store (about 10 miles West of the Mall of America; still in the Minneapolis MN area). She tried to purchase 3 iPhones, and the salesperson seemed to think that that was OK until he tried to ring it up and the computer gave him an error of some sort. The manager was called, and explained that the "newest" policy is that you can buy up to 2 per day in-store, and up to 5 online (I'm assuming with signing the contract). But the manager even suggested to my friend "just buy 2 today, and come back tomorrow to get your 3rd one".
 
While they can limit the amount you buy, they cannot refuse legal tender while accepting it for other products.

This will do nothing to limit the amount that is exported. Just make it slightly more difficult.

I wonder if people are still in denial after the CFO's recent disclosure and the new sales policies that hackers and unlocked phones account for a huge amount of iphone sales?:rolleyes:
 
You should return the to the Apple store with a modified contract stipulating that they can only spend the money you use to purchase the 3 iPhones on a business owned and operated from Roseville, MN.

Tell them "I'll sign your restrictive contract for what I can do with the iPhones if you sign my restrictive contract on what you can do with the money K?"
 
What good is that contract if someone is going to remove them from the country lol
 
BTW, According to the Federal Reserve Coinage act, any retailer can refuse CASH as long as local State Law doesn't say otherwise.
 
diamond.g said:
And by credit card they also mean debit card as well right? Are they looking for a way to track people that buy the phone? What happens if I buy an Apple gift card then turn right around and buy the phone with the gift card?
Click to expand...

No gift cards either .... :D
 
Pre-Paid Credit Cards

Drumjim85 said:
No gift cards either .... :D
Click to expand...


I find that using pre-paid credit cards are best for not being tracked, either by apple or the wife. 7-11 has them and can be loaded with cash.

Works like a charm
 
patrickvanzandt said:
I was at the Apple Store in the Mall of America in Bloomington, MN this morning. I asked for 3 iPhones, and was informed that I must sign an agreement not to export or resell them, titled "Short-Term Purchase Agreement" (see attachment). I refused to sign, saying that it was too much legal language for me. I asked if I could still buy 1 or 2 iPhones, and was told that you can buy up to 2 without signing. Interesting....

This is compared to yesterday when I went to the Apple Store in Rosedale Center in Roseville, MN (about 25 miles from the Mall of America store). I asked for 6, and was told I could only have 4. The salesperson then disappeared in to the back room for 15 minutes (literally!), and came back with 3. She explained that "there is a new policy which I just learned about: a maximum of 3 iPhones, and absolutely no cash sales. You must put it on a credit card".

Either Apple's policies are changing on a daily basis, or there is a lack on consistency between stores. In any case, I was quite surprised when the Mall of America store pulled out the attached contract (which, by the way, they were not too happy about me leaving the store with a copy of it -- but I insisted that if they were going to ask me to sign it that I ought to have the right to take a copy home to review more thoroughly, or even with a lawyer if I so chose).
Click to expand...

So why are you going into multiple stores to buy multiple phones?

My guess is to unlock and resell them.
 
I'm not worried regardless.. I just grab them with my American girlfriend and let her pay and I give her the cash.. She has ID / credit / debit if they so require it.

I'd simply pull "Apple Sales Professional" on them and be like "don't do that to an Apple brother" and hope for the best before resorting to using my gf though.
 
seedster2 said:
While they can limit the amount you buy, they cannot refuse legal tender while accepting it for other products.
Click to expand...
I don't know where you got this idea from, because it isn't a standard business law (some states might have it, but I know a lot don't). Many transactions can only take place with certain forms of tender, ie, businesses have the liberty of saying that if your purchase does not exceed $10, they won't accept credit cards. Other businesses make it clear that they will not accept $100 bills (which is an even more specific form of paper currency). Still other business transactions, like auctions, can only take place if the bidder has a Money Order or a Cashier's Check. Perhaps you could clarify what you meant?

WorldIRC said:
BTW, According to the Federal Reserve Coinage act, any retailer can refuse CASH as long as local State Law doesn't say otherwise.
Click to expand...

Does the law mention anything about checks or Traveler's Checks?
 
ummm did anyone actually read the purchasing agreement? I just skimmed through it very quickly and it looks like all it's saying is that "if you unlock or export it or hack it, Apple isn't liable for data loss, repairs etc etc".
 
CalBoy said:
I don't know where you got this idea from, because it isn't a standard business law (some states might have it, but I know a lot don't). Many transactions can only take place with certain forms of tender, ie, businesses have the liberty of saying that if your purchase does not exceed $10, they won't accept credit cards. Other businesses make it clear that they will not accept $100 bills (which is an even more specific form of paper currency). Still other business transactions, like auctions, can only take place if the bidder has a Money Order or a Cashier's Check. Perhaps you could clarify what you meant?
Click to expand...

Allow me to clarify. Not accepting CC payments under a certain amount is standard practice in a lot of states. That's a big departure from not accepting cash on certain transactions while accepting them on others, at least in NY.

If I go into an Apple store and they are willing to accept 1600 cash for a macbook they cannot refuse my purchase of an iphone at the same store because I am not using a credit card. they better have a compelling reason

I've witnessed first hand at an Expo design store where a gentleman decided he wanted to buy a 8k fridge in cash. They had to accept his payment or otherwise refuse the remainder of his other purchase
 
I havn't taken the time to read through it but if it really says that you are not allowed to unlock it I don't think that the contract would stand up against the DMCA where it says that you are allowed to unlock phones.
 
boss1 said:
ummm did anyone actually read the purchasing agreement? I just skimmed through it very quickly and it looks like all it's saying is that "if you unlock or export it or hack it, Apple isn't liable for data loss, repairs etc etc".
Click to expand...

If that's the case its a smart move on Apple's part. It eliminates the argument that you didn't agree to the "contract" before purchasing and then having to pay the restocking fee because you don't agree to Apple's terms.

There is a bunch at the beginning though about resale and exporting. I think part of it is just to make it more difficult for people to clean out the stores and make a killing on ebay once the holiday season begins (though seeing that the product's been out for 3 months already I can't see there being a inventory-draining rush this holiday)
 
seedster2 said:
Allow me to clarify. Not accepting CC payments under a certain amount is standard practice in a lot of states. That's a big departure from not accepting cash on certain transactions while accepting them on others, at least in NY.

If I go into an Apple store and they are willing to accept 1600 cash for a macbook they cannot refuse my purchase of an iphone at the same store because I am not using a credit card. they better have a compelling reason

I've witnessed first hand at an Expo design store where a gentleman decided he wanted to buy a 8k fridge in cash. They had to accept his payment or otherwise refuse the remainder of his other purchase
Click to expand...

Oh, now I understand what you meant.

I don't think many states have such a law in place. You're in NY, so it makes perfect sense. Coming from CA, I'd say that odds are we have a similar law, but I haven't heard of it before. I'd be interested to see Apple's NY contract. I bet the clause about method of purchase is missing.
 
That contract if it talks about export is bogus...the US has no mandate on it being "illegal" to export the iPhone and no other country has it "illegal" to import the iPhone.
 
WorldIRC said:
That contract if it talks about export is bogus...the US has no mandate on it being "illegal" to export the iPhone and no other country has it "illegal" to import the iPhone.
Click to expand...

Nooooo...That's what I'm saying. If you read the "agreement" (which I admittedly haven't fully read ) I'm pretty sure it's only saying " Apple is not liable for the phone or your data or obligated to service the phone for repairs etc, IF you hack it, unlock it, export it.


The agreement doesn't say If you export it you are breaking the legal law of Apple and you will be thrown into Apple jail "do not pass go, do not collect 200 dollars".



Well you may get the $200 dollars depending on when you bought... Nevermind....
 
boss1 said:
The agreement doesn't say If you export it you are breaking the legal law of Apple and you will be thrown into Apple jail "do not pass go, do not collect 200 dollars".
Click to expand...

Actually, the contract does say that you cannot sell the phone to anyone else, and that you cannot take it out of the country for the purpose of sale. If you do this, you become a viable target for breach of contract, and Apple can take you to civil court.

In fact, now that I piece this together, it makes a lot more sense now. Apple is trying to stop people from buying the iPhone here and then taking it to the UK or Germany, where the Pound Sterling and Euro make the phone more expensive by some decent margins. There would be a strong interest for some to sneak the phone to Europe and sell it for a profit (yet still below the cost in the UK or Germany).
 
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