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1061  Bitcoin / Legal / Re: Miners, Consumer Protections (UCC), and Pre-orders on: May 28, 2013, 12:22:17 AM
This thread has really taken off since I last posted!  There is a lot of information in this thread, some of it correct.

I think the best way to explain the BFL situation from a legal perspective is by using a fact pattern (lawyers love fact patterns).

MSantori buys a widget from Widgetco for $100. Widgetco's website says: "We don't know when you'll get your widget, but we promise we'll ship widgets when we receive them from the manufacturer, and in the order in which we sold them. All sales are final."

If, a month after purchase, Widgetco refuses to ship its widget to Msantori, and instead "cancel's" Msantori's order, then Widgetco is in breach of a material term of the contract.  MSantori's was probably not a contract "absent a specific time provision" There was a specific provision as to time: "when we receive them from the manufacturer, and in the order in which we sold them."

WidgetCo would be liable to MSantori for his "expectancy damages": the value that MSantori would have realized but for the breach.  What would MSantori have if not for Widgetco's breach?  At the very least, he'd have a widget.  How can MSantori get a widget now?  Well, if a widget now costs $200, then the measure of MSantori's expectency damages is at least $200.

Next up: What else can MSantori get besides the $200?  Can he also get the value of all of the money he would have made from the widget?

So it is a "specific provision as to time" not a "provision as to a specific time". I don't know how I missed that. /slaps forehead
Now that makes a lot more sense.  Cheesy
1062  Bitcoin / Legal / Re: Miners, Consumer Protections (UCC), and Pre-orders on: May 27, 2013, 11:35:22 PM
Many times there are successive deliveries in pre-orders. .. 1 order or several orders changes the rights of a seller or buyer?  "Absence of Specific Time Provisions" seems to be strongly worded as a heading and I could grant argument of (2) but I still  believe (3) to be applicable . . . .I don't see mutual exclusivity here

If you read (2), it refers not simply to successive deliveries, but an indefinite contract (i.e., subscription): "If the contract provides for successive performances but is indefinite in duration"

This is clearly not the case that we are discussing here.

The BFL contract completes when the $5,000 worth of mining equipment has been delivered. There is no follow-on delivery of another $5,000 of mining equipment.

An example of something like this would be a maintenance contract where you buy a package of consumables, inspections and labor for the life of the equipment. It would be bizarre if I signed a contract to maintain my printer/copier that had no termination date and I couldn't cancel it.

Another example is a newspaper subscription.
1063  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 27, 2013, 11:28:12 PM
Can we please stop feeding the trolls, please.

You are going to have to be more specific. Everyone who posts anything anywhere about BFL has been accused of being a troll.

He meant you dude.

My point exactly. The pro-BFL folks label "troll" everyone who disagrees with them or provides evidence that disproves one of their statements.
1064  Bitcoin / Legal / Re: Miners, Consumer Protections (UCC), and Pre-orders on: May 27, 2013, 08:39:45 PM
here's another interesting  section that may (contradiction is invited) address preorder.
Quote

§ 2-309. Absence of Specific Time Provisions;  Notice of Termination.

(1) The time for shipment or delivery or any other action under a contract if not provided in this Article or agreed upon shall be a reasonable time.

(2) If the contract provides for successive performances but is indefinite in duration, it is valid for a reasonable time but unless otherwise agreed may be terminated at any time by either party.

(3) Termination of a contract by one party except on the happening of an agreed event requires that reasonable notification be received by the other party and an agreement dispensing with notification is invalid if its operation would be unconscionable. A term specifying standards for the nature and timing of notice is enforceable if the standards are not manifestly unreasonable.


I read this as, barring some huge unfair burden ("its operation would be unconscionable") or it occurring on some some agreed upon event (delivery of product, in the case of pre-order).  With some kind of "resonable notification" (email or snail mail or forum post), unless other wise specified (SLA or delivery contract or Term/conditions) a seller could terminate the contract.  One of the only ways, I think, that this could be argued against would be if the business unilaterally terminated all contracts of sale in an effort to utilize this as a "loop hole".

1) substitution of "a reasonable time" for lack of a specific delivery time
2) the contract does not provide for successive deliveries (like a subscription) so this does not apply, but it mainly says that a subscription contract can be canceled if it doesn't specify how many items or for how long the subscription is for.
3) just says you are in violation of the UCC if you decide to unilaterally terminate a contract and do not notify the other party. It does not absolve you of any responsibilities in the contract just because you notified the other party.

According to the UCC: failure to deliver means the seller must make restitution for the value of the contract, for the value of comparable goods, or arrange for comparable goods to be delivered if it chooses not to deliver the original goods in the sale contract.

BFL made the sale, the buyer paid in full, BFL did not deliver, the value of the goods rose, BFL chose not to honor the contract, BFL then resold the goods in question at a higher price (via more pre-orders). Pretty cut and dry. BFL's choices are to: arrange for the purchased amount of GH/s to appear in Xian's mailbox, re-instate his order, or pay the going market price for an early BFL order at the time of the cancellation.
1065  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 27, 2013, 06:47:57 PM
Can we please stop feeding the trolls, please.

You are going to have to be more specific. Everyone who posts anything anywhere about BFL has been accused of being a troll.
1066  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 27, 2013, 06:08:34 PM
I am sorry I missed your point

Yep. I don't expect you to understand anything.

Over under on when int03h vanishes into the setting sun: 18 days.

I'll take the under  Grin

You want to bet on that?

<EDIT> I don't understand because you don't make any fucking sense..  


Go put a bet on a bitcoin betting site. I don't do anything without escrow that involves people who only have posts dated from today.  Cheesy
Of course I don't make sense to you. Nothing I type will ever make sense to you.

Let us first discuss the terms since I am not really clear on what it is you were implying.. (NOTE IT IS YOU THAT IS SAYING IT .. NOT ME )
But I see there is a bet here somewhere .. please articulate it as best you can.. I am happy to put up 10BTC..



This reposted for YipYap since his ADD seems to be fucking with his short term memory . It is not self appointed it was a direct challenge.

Oh the irony. Int30h posted 12 times after asking me to explain what I meant by the bet.

And yet you avoid actually making the bet. Add one to your abacus labeled int03h's posts.


Oh look, you still don't understand.  Grin Grin
I am not surprised.


Counter increased by 1.

Let me know when you man up. My position is clear.
It is your responsibility to find someone with an IQ over 60 to explain the terms to you.
Hint: the terms are in bold and you have spent half your post history claiming they do not exist.  Grin

Then again, sockpuppets have hands for brains don't they.

So .. your terms are : 
If I am here for 18 days or more then you will pay me 10BTC?
I will add to that .. that I am not a sock puppet and I will prove it to you on day 18.

Clarify if any of these terms are unacceptable.

You doubled your IQ in posts, all in the same thread. Sad and impressive at the same time.
1067  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 27, 2013, 06:02:18 PM
I am sorry I missed your point

Yep. I don't expect you to understand anything.

Over under on when int03h vanishes into the setting sun: 18 days.

I'll take the under  Grin

You want to bet on that?

<EDIT> I don't understand because you don't make any fucking sense..  


Go put a bet on a bitcoin betting site. I don't do anything without escrow that involves people who only have posts dated from today.  Cheesy
Of course I don't make sense to you. Nothing I type will ever make sense to you.

Let us first discuss the terms since I am not really clear on what it is you were implying.. (NOTE IT IS YOU THAT IS SAYING IT .. NOT ME )
But I see there is a bet here somewhere .. please articulate it as best you can.. I am happy to put up 10BTC..



This reposted for YipYap since his ADD seems to be fucking with his short term memory . It is not self appointed it was a direct challenge.

Oh the irony. Int30h posted 12 times after asking me to explain what I meant by the bet.

And yet you avoid actually making the bet. Add one to your abacus labeled int03h's posts.


Oh look, you still don't understand.  Grin Grin
I am not surprised.


Counter increased by 1.

Let me know when you man up. My position is clear.
It is your responsibility to find someone with an IQ over 60 to explain the terms to you.
Hint: the terms are in bold and you have spent half your post history claiming they do not exist.  Grin

Then again, sockpuppets have hands for brains don't they.
1068  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 27, 2013, 05:56:22 PM
I am sorry I missed your point

Yep. I don't expect you to understand anything.

Over under on when int03h vanishes into the setting sun: 18 days.

I'll take the under  Grin

You want to bet on that?

<EDIT> I don't understand because you don't make any fucking sense..  


Go put a bet on a bitcoin betting site. I don't do anything without escrow that involves people who only have posts dated from today.  Cheesy
Of course I don't make sense to you. Nothing I type will ever make sense to you.

Let us first discuss the terms since I am not really clear on what it is you were implying.. (NOTE IT IS YOU THAT IS SAYING IT .. NOT ME )
But I see there is a bet here somewhere .. please articulate it as best you can.. I am happy to put up 10BTC..



This reposted for YipYap since his ADD seems to be fucking with his short term memory . It is not self appointed it was a direct challenge.

Oh the irony. Int30h posted 12 times after asking me to explain what I meant by the bet.

And yet you avoid actually making the bet. Add one to your abacus labeled int03h's posts.


Oh look, you still don't understand.  Grin Grin
I am not surprised.
1069  Bitcoin / Legal / Re: Miners, Consumer Protections (UCC), and Pre-orders on: May 27, 2013, 05:42:03 PM
Here are the terms you agree to when buying product on the BFL website:

Products are shipped according to placement in the order queue, and delivery may take 2 months or more after order. All sales are final.
1070  Bitcoin / Hardware / Re: BFL upgrade now offered on 5ghz orders.(screenshot) on: May 27, 2013, 05:38:46 PM
After reading all the bashing here in the forums, some from competitor trolls, and some from customers, this seems more like an angry customer at walmart demanding a full refund on their toaster after ten years of use. Where did that community spirit go?

I have to admit it's a lot of fun to read all these elaborate posts here, serious posts mixed with jokes and one-liners. What makes it even more fun is that there is some truth to it, humor at best. I only wish that it was kept on that level, and not turn into something destructive making it even harder for BFL reach "our" goal. Yes, being a customer in a community driven project it is in "our" interest they are successful, it's not their responsibility alone.

The customer service at Walmart is orders of magnitude better than that of BFL. Just read through Inaba's post history for a taste. You forgot Avalon and bASIC in the history of things. The community rooted them on for a time as well. Then the marketing war started and things turned ugly. BFL relentlessly attacked via marketing that their chips were so much more power efficient and had better performance. That turned out not to be true at all. In fact, given their delays it turns out their marketing claims of actual measurements were baseless.

What turned me off to BFL was Josh's incandescent disdain for the community that spawned him, and BFL's sketchy marketing campaign.

Delays are to be expected. Notice how the community treats Avalon now? They had delays too.
1071  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 27, 2013, 05:27:46 PM
I am sorry I missed your point

Yep. I don't expect you to understand anything.

Over under on when int03h vanishes into the setting sun: 18 days.

I'll take the under  Grin

You want to bet on that?

<EDIT> I don't understand because you don't make any fucking sense..  


Go put a bet on a bitcoin betting site. I don't do anything without escrow that involves people who only have posts dated from today.  Cheesy
Of course I don't make sense to you. Nothing I type will ever make sense to you.

Let us first discuss the terms since I am not really clear on what it is you were implying.. (NOTE IT IS YOU THAT IS SAYING IT .. NOT ME )
But I see there is a bet here somewhere .. please articulate it as best you can.. I am happy to put up 10BTC..



This reposted for YipYap since his ADD seems to be fucking with his short term memory . It is not self appointed it was a direct challenge.

Oh the irony. Int30h posted 12 times after asking me to explain what I meant by the bet.
1072  Bitcoin / Legal / Re: Miners, Consumer Protections (UCC), and Pre-orders on: May 27, 2013, 02:37:30 AM
Endlessa posted the questions here:

http://www.expertlaw.com/forums/showthread.php?t=159009&p=713115

Feel free to review the case they posted and see if they actually did a good job of posing all the questions (with relevant material) attached.

The results sound fairly biased but who knows.

The act of purchase was glossed over. He also did not mention that the market value of the goods had risen in the intervening time, nor did he mention that full price was paid for goods that did not yet exist. It was not an order, or reservation, or deposit. It was a full purchase.

Tempting to add that tidbit to the thread over there and see if that changes things.

P.S. I noted the "Monica", but this is the internet and unfortunately the rules of TOGTFO apply.  Roll Eyes
1073  Bitcoin / Legal / Re: Miners, Consumer Protections (UCC), and Pre-orders on: May 27, 2013, 01:44:13 AM
The standard restitution for breach of forward contract is paying the market price for the contract, or providing comparable goods.

To parse the section that explains the damages for the breach of contract:

(a) the measure of damages
How much is owed.

in the case of wrongful failure to deliver by the seller or rightful rejection or justifiable revocation of acceptance by the buyer
If the seller does not produce the goods, or the buyer rejects the goods as delivered (defective, wrong goods, etc)

is the difference between the market price at the time for tender under the contract and the contract price
What the goods are worth now minus what the goods were worth when purchased. In this case 'tender' means delivery. The delivery was roughly $5K cash. The buyer is making a "rightful rejection" of that delivery.

together with any incidental or consequential damages under Section 2-715, but less expenses saved in consequence of the seller's breach; and

This refers to the following section of the UCC:
Quote
Incidental damages resulting from the seller's breach include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected, any commercially reasonable charges, expenses or commissions in connection with effecting cover and any other reasonable expense incident to the delay or other breach.

(2) Consequential damages resulting from the seller's breach include

(a) any loss resulting from general or particular requirements and needs of which the seller at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and
(b) injury to person or property proximately resulting from any breach of warranty.


BFL can proactively decide not to do business with Xian. However, after having done business with him and entering a contract with him, the time for their right to refuse has come and gone.
1074  Bitcoin / Hardware / Re: [ANNOUNCE] COMPANY NAME IN CAPITALS INC. ***ASIC MINERS DELIVERY NOW*** [spoof] on: May 27, 2013, 01:08:52 AM
Moved back here temporarily for educational purposes.  Wink

 Huh

I moved this to OT originally, but decided that the Custom Hardware subsection needs some educational material. I'm sick of yet-another-scam-ASIC (TM) popping up again with noobies in the tow.

Oh, lol. Yeah, it is bad news. It's amazing that "newbies" will fall for it. Have these people lived in caves all their lives?

Its not only newbies falling for it :/ People (including me, historically) get blinded by money.

In a way you could work off liklihood of scam, potential return and hedge your bets, but any money to scammers is too much.

Your posts are obscuring my view of the money printing machine! I CAN BARELY SEE IT FROM PAGE 2!
1075  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 27, 2013, 01:01:36 AM
I would have nothing to lose if I were you.

Just call the authorities and get this company shut down (they gotta be doing something illegal) after all if you can't have it why should anyone else. I cancelled my orders so no sweat off my brow.

Get the law involved if you want. Up to you. You're just an asshole to Josh remember?

I believe he is in breach of contract and pain and suffering has been endured. As long as you don't provide a paypal information you have them stuck in breach and possibly able to sue.

Call a lawyer! Tell him all about it.

In the same vein:

Lets assume that X's grounds for suit is valid in it's premise. (which imo it isn't).
Lets assume that X would win the suit.
Lets assume that BFL gets a judgement it can afford to pay.

So BFL pays X, his lawyer takes a good portion of it... everything is settled.

Now instead of assuming BFL pays him, lets look at what happens if they either honestly can't afford to pay him... or decide to use him as an excuse to roll up shop. Now they're declaring bankruptcy...

X gets paid some or all of his damages award and shortly afterwards all the other other pre-order customers who will never get a product file civil suits against X for depriving them of a working product which BFL would have been able to provide eventually if he hadn't put them out of business. Does X's previous award cover the potential damages from nobody else getting the product?

That's why this whole thing is based on a false premise.

There wasn't a forward contract for the simple reason that there isn't anything in the pre-order paperwork that specifies it as a forward contract. Modifications to a 'standard' must be specified. In this case they weren't. The standard repudiation for any sort of failed sales contract (except forward contract) is a return of the purchased item combined with a refund  of the purchase price (for a very good reason). You cannot legally compel an entity to provide a good or service to customer who they don't want to provide that good or service to.

Now if his place in line had been moved down... and that had led to his asshattery and refund that might be a different story, in this example he would be able to recover damages from them moving his place in line... but still not from the refund.

Earlier in the thread the relevant section of the UCC (400.2-105) was produced that identifies a contract for goods that do not exist. The simple fact that BFL was selling goods that do not exist makes it a "sale of future goods" and that is precisely what a forward contract is.

(2) Goods must be both existing and identified before any interest in them can pass. Goods which are not both existing and identified are "future" goods. A purported present sale of future goods or of any interest therein operates as a contract to sell.

If they have signed a contract to do so, you most certainly can compel an entity to provide service to someone they don't want to.  The wants/needs of BFL do not enter into it. BFL needs to live up to their contract or make restitution for their breach. Also, BFL will probably end up paying for Xian's legal fees if they end up in court and lose.
1076  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 27, 2013, 12:21:29 AM
@drlukacs

Nottm28's take on the subject revolves around the right to refuse service by a retail establishment and that Xian was complaining about BFL on public forums.

Here are his relevant posts on the subject:
https://bitcointalk.org/index.php?topic=207331.msg2271285#msg2271285
https://bitcointalk.org/index.php?topic=207331.msg2270639#msg2270639
https://bitcointalk.org/index.php?topic=207331.msg2266057#msg2266057

BFL may refuse to sell Xian further goods (beyond what Xian already paid for), but BFL cannot repudiate the contract of sale. In fact, doing so to retaliate Xian for speaking his mind publicly could arguably be grounds for punitive damages.

Just because BFL no longer likes the face of Xian does not exempt BFL from the legal obligation to perform and deliver.


I agree with this assessment.

Initially, I believed that BFL had a right to refuse service. After consideration (and something passing for discussion in this thread), I now believe that BFL must make restitution for breach of contract.
1077  Bitcoin / Hardware / Re: *New PCI-E Based ASIC miners 1.2th/s - 1.9th's +\- 10%* on: May 27, 2013, 12:08:33 AM
I think these guys copied their design from here:
https://bitcointalk.org/index.php?topic=216990.new#new
1078  Bitcoin / Hardware / Re: [ANNOUNCE] COMPANY NAME IN CAPITALS INC. ***ASIC MINERS DELIVERY NOW*** [spoof] on: May 27, 2013, 12:02:39 AM
My faith in humanity is renewed.
But I don't have 999999 bitcoins.  Embarrassed
1079  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 26, 2013, 11:59:15 PM
@drlukacs

Nottm28's take on the subject revolves around the right to refuse service by a retail establishment and that Xian was complaining about BFL on public forums.

Here are his relevant posts on the subject:
https://bitcointalk.org/index.php?topic=207331.msg2271285#msg2271285
https://bitcointalk.org/index.php?topic=207331.msg2270639#msg2270639
https://bitcointalk.org/index.php?topic=207331.msg2266057#msg2266057

After thinking about it for a bit, I don't think a business can force a refund on you after your purchase without incurring some sort of liability.

Nottm28 left the thread for a time and missed the discussion on contract law. I would recommend that he read a few pages, but I wouldn't wish that on another human being.

Yes I sleep and have a life. Speed read the posts and found little of interest.

Fair enough. I was not casting aspersions. I just noted that the conversation had moved forward since your last post.
1080  Bitcoin / Hardware / Re: Butterfly Labs Forced "On Hold For Refund" for all my Single SC orders on: May 26, 2013, 11:47:45 PM
Well I have summarized the facts and the numbers before on this thread. I hope you don't mind if I ask you to go back and actually read the thread rather than have me re-posting my comments ad infinitum.

I do not mind, but would you please be so kind to include a link? There are 49 pages of this thread, so finding the right post is a fairly non-trivial task, unless you know what you are looking for exactly.

Plus examining 49 pages of this particular thread could cause blindness, nausea, vomiting, liver damage, and a diminished outlook on humanity. Did I mention the uncontrollable flatulence?

Nottm28 left the thread for a time and missed the discussion on contract law. I would recommend that he read a few pages, but I wouldn't wish that on another human being.
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