In Specht v. Netscape Communications Corp. (306 F3d 17 [2d Cir 2002]), the court applied precedents "from the world of paper contracting" to "the emergent world of online product delivery." (306 F3d at 31.) The plaintiffs in that case were Internet users who had downloaded software from defendants' web page. After they sued defendants in a class action raising various claims, defendants sought to compel arbitration of the dispute, based upon terms listed on their Web site. In order to resolve "the central question of arbitrability," the court found it necessary to first address "issues of contract formation in cyberspace." (306 F3d at 20.) Although cyberspace transactions typically lacked "a physical document containing contract terms," the parties to such a transaction could be deemed to have been put on "inquiry notice" of license terms that a reasonably prudent person would have seen on the Web site. (306 F3d at 31.) Conversely, if an offer on a Web site "did not carry an immediately visible notice of the existence of license terms or require unambiguous manifestation of assent to those terms," the mere "existence of license terms on a submerged screen is not sufficient to place consumers on inquiry or constructive notice of those terms." (306 F3d at 31-32.) The court in Specht went on to find that the placement of license terms on an "unexplored portion of [defendants'] webpage" below the "download button" was not sufficient to bind customers to those terms. (306 F3d at 32.) In so holding, the court distinguished other "online transaction" cases where "there was much clearer notice than in the present case that a user's act would manifest assent to contract terms." (306 F3d at 33.)