Should the UCC apply to Year-2000 deficiencies? Software usually is held a good covered by UCC; common law may govern service aspects

Article Abstract:

Companies are examining whether software vendors are liable for some of the year-2000 remediation costs. Most large vendors are preparing year-2000 remediation packages for their customers, but small and midsize sellers hesitate to make large expenditures to keep their customers happy. The law of sales affects negotiations even for disputes which do not end up in court, and being knowledgeable about warranty law will be helpful to each side. Most courts have held that the Uniform Commercial Code applies to software, since these are good and not services.

Prepackaged software, Application development software, Compatibility (Computers), Compatible software

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New law limits liability for Year-2000 disclosure; the Year 2000 Information and Readiness Disclosure Act was signed and took effect Oct. 19

Article Abstract:

Two goals of the Year 2000 Information and Readiness Disclosure Act of 1998 are the promotion of free disclosure and exchange of information related to year-2000 readiness and the development of uniform legal principles regulating such disclosure and information exchange. The act attains these goals with a specific antitrust exemption for year 2000-preparation activities and limited liability protection for certain year-2000 disclosures.

United States

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Early Y2K rulings: every party has responsibility; millennium bug is now common knowledge; duty to mitigate is more vital than placing blame

Article Abstract:

Early court rulings on the Y2K problem assign responsibility to all parties and that the expectation that both individual and corporate citizens will perform in good faith is apparent in all litigation. Y2K readiness should be the policy mandate ruling 1999, especially good business advice since many corporations will be both plaintiff and defendant.

California, New York

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