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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."

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