Taylor Shellfish Farms: Legal Risks and Contract Gaps in Terms & Conditions | Erayaha

## When Shipping Terms Leave You Exposed: A Case Study on Taylor Shellfish Farms' Legal Risks

When we examined Taylor Shellfish Farms' Terms & Conditions, our analysis revealed several legal and logical gaps that could expose the company to significant financial and regulatory risks. For example, ambiguous liability disclaimers and unclear refund policies could lead to disputes costing tens of thousands in litigation or regulatory fines—especially under consumer protection statutes like the Magnuson-Moss Warranty Act and state-level unfair trade practices laws.

1. Ambiguous Liability for Shipping Delays and Losses Taylor Shellfish Farms states that neither the company nor its carriers will be held liable for misrouted packages or weather-related delays. However, this blanket disclaimer lacks specificity and may not be enforceable under state consumer protection laws, which often require clear allocation of risk and reasonable care in fulfillment. This ambiguity could result in costly disputes or chargebacks averaging $5,000–$20,000 per incident if customers challenge denied claims.

Legal Analysis

high Risk

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Added

Taylor Shellfish and its selected shipping provider will NOTshall not be held liable for misrouted packages resulting solely from incorrect shipping information provided by youthe customer. However, Taylor Shellfish remains responsible for exercising reasonable care in packaging, labeling, and dispatching shipments... If your package is held up along the way Liability for delays or losses due to weather conditions, neither we, nor FedEx, will shall be held liablelimited to circumstances beyond the reasonable control of Taylor Shellfish and its carriers, and shall not apply where negligence or failure to exercise due care is established.

Legal Explanation

The original clause is overly broad and may be deemed unenforceable under state consumer protection laws, which require reasonable care and prohibit blanket waivers of liability. The revision clarifies the allocation of risk, preserves enforceability, and reduces exposure to consumer claims and chargebacks.

2. Refund and Credit Policy: Unclear Consumer Rights The refund policy gives Taylor Shellfish Farms broad discretion to deny refunds, especially for perishable goods, and restricts claims to a 48–72 hour window. However, it does not specify criteria for refunds or the process for dispute resolution, creating uncertainty for both parties. This lack of clarity risks non-compliance with the FTC's Mail, Internet, or Telephone Order Merchandise Rule and state lemon laws, potentially resulting in regulatory penalties up to $43,792 per violation.

Legal Analysis

critical Risk

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If your order has been incorrectly packed wrong, gets lost, destroyed, damaged, or delivered late we may either, Taylor Shellfish will, at the customer’s election, refund your moneythe purchase price, reship the product, or give youprovide a discount on your nexta future order, depending on your preferences, who madeprovided the mistake, and whether it was a complete or partial loss. ... Concerns regarding lost/stolen/damaged packages or product quality concerns must be reportedclaim is submitted within 48-72 hours of receiving productdelivery. Complaints received outside this windowClaims submitted after 72 hours may not qualify for a refund and may be considered at Taylor Shellfish’s discretion, subject to store creditapplicable consumer protection laws. Dispute resolution procedures and criteria for refunds or credits shall be provided in writing upon request.

Legal Explanation

The original clause lacks clear criteria for refunds and does not specify the dispute resolution process, risking non-compliance with FTC rules and state lemon laws. The revision ensures compliance, transparency, and reduces regulatory risk.

3. Final Sale Policy for Perishable Goods: Potential Unconscionability The terms declare all perishable product sales as final, with no returns or exchanges. Courts have found such blanket waivers unconscionable if they deprive consumers of basic remedies for defective or spoiled goods. This exposes Taylor Shellfish Farms to class action risk and damages that could exceed $100,000 if a batch is spoiled or misdelivered.

Legal Analysis

high Risk

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All perishable product issales are final saleexcept in cases where the product is defective, spoiled, or not as described upon delivery. No returns/exchanges will be acceptedIn such cases, customers are entitled to a refund, replacement, or credit, subject to timely notification and verification.

Legal Explanation

A blanket final sale policy for perishable goods may be deemed unconscionable and unenforceable if it denies remedies for defective or spoiled products. The revision provides necessary consumer protections and limits exposure to class action risk.

4. Lack of Governing Law and Jurisdiction Clause The Terms & Conditions do not specify which state's laws govern the contract or where disputes must be resolved. This omission can lead to forum shopping, increased litigation costs, and unpredictable outcomes. For a business shipping nationwide, this could mean defending lawsuits in multiple states, with average legal fees exceeding $50,000 per case.

Legal Analysis

medium Risk

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[No governing law or jurisdiction clause present in theThese Terms & Conditions shall be governed by and construed in accordance with the laws of the State of Washington.] Any disputes arising under or in connection with these Terms shall be resolved exclusively in the state or federal courts located in Washington State.

Legal Explanation

The absence of a governing law and jurisdiction clause creates uncertainty and increases litigation risk. The revision provides predictability, reduces legal costs, and limits forum shopping.

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Conclusion: Proactive Legal Protection is Essential Our analysis shows that Taylor Shellfish Farms' current Terms & Conditions expose the business to avoidable legal and financial risks. Addressing these gaps with clear, enforceable language and compliance-focused revisions can prevent costly disputes and regulatory action.

How robust are your company’s current consumer protection and refund policies?
Are your liability disclaimers enforceable under state and federal law?
What would a multi-state lawsuit cost your business?

This analysis is for educational purposes only and does not constitute legal advice. For actual legal guidance, consult with a licensed attorney. This assessment is based on publicly available information and professional legal analysis. See erayaha.ai’s terms of service for liability limitations.