The case involved an online auction conducted by The.TV Corporation International (DotTV) on its Web site. DotTV posted an announcement on its Web site asking for bids for rights to the "Golf.tv" domain name and stating that the name would go to the highest bidder. Je Ho Lim submitted a bid for $1,010 and authorized DotTV to charge that amount to his credit card if his bid was the highest. Later, DotTV sent Lim an e-mail message stating that he had "won the auction" and charged the bid price of $1,010 to Lim's credit card.

When DotTV subsequently refused to transfer the name, Lim sued DotTV for, among other things, breach of contract. Lim argued that his bid constituted an ac¬ceptance of DotTV's offer to sell the name. DotTV contended that Lim's bid was an offer, which it had not accepted. Furthermore, even if it had accepted Lim's offer, because the auction was "with re¬serve," DotTV could withdraw the domain name from the auction even after acceptance. The trial court held for DotTV, and Lim appealed.