A EULA (End
User License Agreement) is a contract a manufacturer makes you sign before they let you buy or lease their product. Products that come with a EULA (pronounced "YOO - lah") are high-
tech, big-
ticket items: cars, cell phones, appliances, etc. EULAs contain do's & don't's for using a product. Violating the EULA will usually void the warranty.
A EULA is not the same as a TOS (Terms of Service Agreement). A TOS is for a service, not a physical object.
Legally, a EULA gives you permission (gives you a "license") to use the product after you buy it. Presumably, the manufacturer can "revoke" that "permission" at any time, and they will do so by remotely shutting down the product (called "bricking" your product), rendering it inoperable.
The language of a typical EULA includes "hold harmless" clauses to protect the manufacturer from lawsuits. Additionally, you will (usually) be agreeing to let the manufacturer gather personal data about you via the product. This includes your locations, shopping habits, medical information, sexual orientation, etc. A EULA will also usually dictate that you resolve disputes via arbitration (not lawsuits), and stipulate that the arbiter will be hired by the manufacturer (so the arbiter works for the manufacturer, and will do as they say).
EULAs will become more
common as modern manufacturers
move away from the business
model of
selling things, and embrace the
model of leasing things. That way, "you will own
nothing and be
happy."
I tries to
read the EULA (End User License Agreement) that came with my new cell
phone, but it was over 30 pages long, so I just gave up and signed it anyway. I hope that by signing it, I didn't agree to
anything too crazy.