Posted By:
MattI am not a lawyer, nor am I "bulldog," but the document you quoted from seems to be Microsoft's general TOS for ANY product - see the first paragraph of what you quoted from:
"1. What the Contract Covers.
This is a contract between you and the Microsoft company referenced in section 29. Sometimes the Microsoft company referenced in section 29 is referred to as "Microsoft," "we," "us" or "our". This contract applies to any Windows Live, Live Search, MSN, Microsoft Office Online, Microsoft Office Live or other Microsoft software or services, including updates, that display or link to this contract and that you use while this contract is in force. All of the software or services are referred to in this contract as the "service.""
My understanding of the section you quoted above was that it was governing any time you purchase something directly from Microsoft, which is not the case here. Right at the beginning of what you quoted it says:
"7. If You Pay Microsoft.
7.1 Charges. This section 7 applies in all situations in which you directly pay us. If you pay a company other than us for the service, then the charges and billing terms are as stated by the other company."
There is a FAQ for the Live Search promotion found here:
<a href="http://search.live.com/cashback/faq</a" target="_new" rel="nofollow">http://search.live.com/cashback/faq</a>
notice question #3:
"Is a Live Search cashback account really free?
Yes! There are no costs, hidden fees or extra charges to you."
This is my layman's reading. Hope it helps.
Edited to add: One follow up comment - once you click on the 20% link and get to the ebay website, you can use it to buy anything on ebay that has a BIN (again make sure it shows up when you confirm the payment). LiveSearch also links to other sites besides ebay but as you noticed those are just retail stores and have nothing to do with the 20% promotion although they may offer some other cashback amount.
Edited again for poor spelling.