Judicial treatment of damages exclusions negotiated in custom software licenses
Article Abstract:
Courts hearing computer warranty suits in the 1970s and 1980s have interpreted the Uniform Commercial Code (UCC) so as to negate contractual clauses limiting consequential damages. Both the 'failure of essential purpose' and 'total and fundamental breach' standards which the courts have used to invalidate damages exclusions are ill-advised because they limit parties' ability to freely allocate risk. The UCC's freedom of contract policy is best served by allowing limitations to the recourse of a party who did not receive the product quality expected.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1993
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Risk allocation in delivery terms
Article Abstract:
Both sellers and buyers can contract to allocate the risk of loss in the shipment of goods in any way they wish. The 'free on board' (FOB) term should be given first, then the parties can allocate the risk of defective goods in ways other than those provided under the Uniform Commercial Code. Sellers can provide for remedies in the case of rejected goods, specify the FOB term, or waive an Article 2 security interest. The buyer can nullify or negotiate the FOB term or allow for the use of revesting rules in the case of nonconforming goods.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1992
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Loss allocation rules of the check payment system with respect to wrongful honor; alterations; lost, stolen or destroyed checks; and forged accounts: an explanation of the present and revised UCC Articles 3 and 4
Article Abstract:
Uniform Commercial Code (UCC) 3 and 4, covering the check payment system's loss allocation rules, have been revised. UCC 4-303 deals with wrongful honor, UCC 3-309 with lost, destroyed or stolen checks, UCC 4-209 with forged accounts, and UCC 3-407, 3-406, 4-207 and 4-401 with check alteration. A table of loss allocation rules summarizing the changes made by the revised UCC is given.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1993
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