Uniform Commercial Code 2b the

2916 Words Oct 3rd, 1999 12 Pages
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
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