A new law will probably be introduced into state legislatures which will govern all contracts for the development, sale, licensing, and support of computer software. This law, which has been in development for about ten years, will be an amendment to the Uniform Commercial Code. The amendment is called Article 2B (Law of Licensing) and is loosely based on UCC Article 2 (Law of Sales), which governs sales of goods in all 50 states. A joint committee of the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute is drafting the changes to the UCC. The UCC was drafted in the 1950’s and currently governs the sales of goods but not products like software, which are licensed, not sold. …show more content…
Article 2B says that the publisher doesn’t have to show software customers the terms until after the sale, when it’s too late to do comparison shopping. By then, the consumer has already started installing the software. The customer is deemed to have accepted the terms of the contract if he/she uses the product instead of returning it. All of the terms of the agreement are now fully enforceable as if the consumer had reviewed, discussed, and signed a paper contract before the sale. Many of the shrink-wrap software licenses say that once you break the seal and use the software, you’re releasing the vendor from all warranties. Basically, the software has been sold “as is” and you’ve given up your legal recourse if it doesn’t perform as claimed, damages your computer, or has bugs that lead to errors. Under the Magnuson-Moss Warranty Improvement Act customers are entitled to see the warranty of any goods sold for $15 or more. It is not unreasonable to assume that software purchased for home usage would be covered by the Act. But software customers rarely get to see the warranties provided with software until after the sale. Article 2B characterizes mass-market software sales as licenses, which may not be covered by the Magnuson-Moss Act. Products normally come with an implied warranty of merchantability, which states that the product will be fit for ordinary use, it will
- PWGSC put together the procurement licence and requirement all together in a single RFP which was not completed by the Department of National Revenue in a previous purchase of office automation licences from Microsoft (CITT, 2014).
20) With regard to consideration in a sales contract, the UCC differs from the common law in that
vendors. Article 2 applies to all contracts for the sale of goods (2-102). The code
The Uniform Commercial Code (UCC or sometimes referred to simply as the Code) is a statute published by the National Conference of Commissioners of Uniform State Laws (NCCUSL), (Melvin, 2011). This statute is adopted by every state in the U.S., except for the state of Louisiana. The function of the UCC is to promote commercial efficiency through providing standardized policies and procedures that consumers and merchants can depend on. Common Law contracts governs transactions with real estate, services, insurance, intangible assets and employment (The Asset Protection Attorneys, 2015). Common Law is primarily concerned with the sale of merchandise and securities.
u. P2) This implies that the seller who intends to enter a contract with a customer has a duty to disclose exactly what the customer is buying and what the terms of the sale are.
If a business offers a service that is dependent on certain products, the reality is that the service cannot be performed without them. For example, from past experience related to a transmission that failed in my 1997 Honda Civic, the replacement of the transmission was going to be to be installed in my car by a small, locally owned and operated auto repair shop called ABC Auto Repair (ABC). ABC Auto Repair has been in business for 30 years and is only in the business of automobile service and repairs. Therefore, in order to get the job done, the transmission parts must be supplied by a manufacturer or re-seller of those parts. ABC cannot the conduct a transmission replacement without the parts that ABC relies on purchasing from their supplier, Summit Auto. In addition, ABC does not sell or warranty any of the parts that are installed in the automobiles they repair. If there is a part that is found to be defective, ABC is not strictly liable according to the terms of the service agreement. If my parts for my transmission were defective, and I was in an automobile accident as a result of the defect, I would hold ABC partially liable for not testing the parts to ensure a quality
The Uniform Commercial Code (UCC) in the private sector and the Federal Acquisition Regulations (FAR) are the documents that govern contract formation in the private verses public sector industry.
ASC 985 -605 Software — Revenue Recognition “provides guidance on when revenue should be recognized and in what amounts for licensing, selling, leasing, or otherwise marketing computer software.” It defines “ Software arrangements range from those that provide a license for a single software product to those that, in addition to the delivery of software or a software system, require significant production, modification, or customization of software.” (ASC 985-605-05-3 ). And the Scope and Scope exception is in ASC 985-605-15 (The Scope in 985-605-15-13 and Scope exception 986-605-15-14)
A new law will probably be introduced into state legislatures which will govern all contracts for the development, sale, licensing, and support of computer software. This law, which has been in development for about ten years, will be an amendment to the Uniform Commercial Code. The amendment is called Article 2B (Law of Licensing) and is loosely based on UCC Article 2 (Law of Sales), which governs sales of goods in all 50 states. A joint committee of the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute is drafting the changes to the UCC.
The Uniform Commercial Code is a set of legal rules that was developed to bring about a sense of consistency to the commercial industry. It is merely a blueprint of how the developers interpret the way of doing business that would be fair and just to all parties concerned. It was totally up to the individual states if they would enact the UCC as written or construct modifications they felt were necessary to circumstances within that state. Once the codes were adopted by an individual state, they became the legal authority that still governs the way many business transactions are handled today.
This is a problem. It is not the distributors issuing the warranty. It is Handy Andy’s warranty given to the customers as a testament to stand behind their product. This is not a third-party warrant that is sold at say a used car lot. Again, this reflects poorly on Handy Andy and how they value their customers.
To address the first concern the owner’s contract should be Uniform Commercial Code (UCC) rather than Common Law due to the following:
Under Section 12(4) which provides that “whether a stipulation in a contract of sale is a condition or a warranty depends in each case on the construction of the contract. A stipulation may be a condition though called a warranty in the contract”. Therefore, every contract is to be assessed in the light of circumstances including intention of the parties and also terminology used in the construction of the contract.
A piece of computer software comprises a program, which is a series of instructions expressed in code, intended to cause a particular result when used in computer hardware. Computer software is afforded copyright protection as a category of literary work and enjoy copyright protection under sections 1(1) and 3(1) (b) Copyright Designs and Patents Act 1988 [1]. In order to be an original literary work, the computer program must be the product of a substantial degree of skill, labour and judgement by the author. This was decided in the case of University of London Press Ltd v University Tutorial Press Ltd [2].
The non-refundable portion of the license fee specified in the agreements should be recognized either upon delivery of the product or at the time