JooJoo Pre-Orders Violate PayPal TOS? Fusion Garage Already Selling the JooJoo Despite Pending Litigation

The CrunchPad has been a sweet dream of a visionary man but everything
ended in disaster. Not only did Michael Arrington and his TechCrunch
team cancel their collaboration with Fusion Garage and thus the launch
of the CrunchPad but Fusion Garage also decided to sell the product on
its own.As we told you a few days ago, the JooJoo is what the CrunchPad
will be known as once it hits retail stores. The Internet tablet is
supposed to offer you a 12-inch capacitive touchscreen, a 4GB SSD, Wi-Fi
connectivity and 5 hours of battery life. Those of you interested in
purchasing it will have to pay $500 which is a lot to ask for a device
that will only be able to help you surf the Internet. The device will
run a Linux-based OS that will only feature a web browser. That was
Michael Arrington s initial idea but he also wanted to make the device
very affordable to the masses.
$500 is not what I call affordable and the last mentioned price was
somewhere around $300. And then the project died as the main parties
involved decided to part ways. Now I m not going to get into the whole
legal matters behind the scandal. TechCrunch has sued Fusion Garage and
it remains to be seen what will happen to the JooJoo in the future.
What s interesting right now is the fact that Fusion Garage is breaking
the terms of service of PayPal with the pre-sale of the JooJoo. The
tablets will be delivered 8 to 10 weeks after pre-order which is not
something PayPal generally agrees with:
ll.4 " Prohibited Transactions. ... You also agree not to use your
PayPal account to sell goods with delivery dates delayed more than 20
days from the date of payment, or to sell securities, business
opportunities, franchises or multi-level marketing or goods with
delivery delayed more than 20 days from the date of payment.
So what do you say? Will Fusion Garage stop pre-orders?