NSI screws over grad student, gets away with it

This Wired article just blows me away. An MBA student wanted to start a new online business using the domain races.com, and he paid thousands of dollars to buy it from its owner. The owner filled out the transfer information, and then Network Solutions screwed up the transfer twice, listing the domain as available in the database. The first time the student pointed out their mistake and they corrected it; the second time NSI couldn't back the purchase out because a third-party registrar made the sale.

So NSI's gonna get ripped a new one for the screw-up, right? Not according to the article, which points out that the courts haven't yet held NSI responsible for a mistake like this. I'm just shaking my head over this one; the fact that they failed to correct the problem after one mistake just screams negligence to me. Does a blanket "it's not our fault if something goes wrong" statement enable NSI to get away with something like this? Apparently so, but if anybody out there is into the whole legal thing and would like to comment, I'd certainly be interested.

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