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  • Essay / Uniform Commercial Code - 2822

    A new law will likely be introduced in state legislatures that will govern all contracts for the development, sale, licensing and support of computer software. This law, in preparation for around ten years, will be an amendment to the Uniform Commercial Code. The amendment is called Section 2B (Licensing Act) and is loosely based on UCC Section 2 (Sales Act), 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 changes to the UCC. The UCC was written in the 1950s and currently governs sales of goods, but not products like software, which are licensed, not sold. Basically, when you purchase software, you are purchasing the information and rights necessary to use the software. Section 2B creates standards for licensing these information products, including rules for interpreting warranties, legal remedies, liability, and risks. This project began to consider instituting a separate section of the UCC for software and related contracts. Section 2B is designed to provide uniformity among States and in the issue of goods versus services. It aims to make software contract laws more consistent and clearer across states. If laws are consistent across states, it will be easier for buyers and sellers to understand how to do business with each other. There is great benefit in creating a uniform system for software products and services, however, this proposed Article 2B has major flaws. Article 2B uses a contractual model that excludes negotiation and does not reveal the terms of the contract to the client. until the sale is finalized. It also adopts a licensing model whereby when you buy software, you are really only buying the right to use it. Consumers also have little or no opportunity to read warranties and disclaimers before purchasing the product. Proposed Section 2B eliminates some of the legal protections currently available to software purchasers. For example, it reduces vendor liability for software defects and viruses and allows vendors to bill separately for software licenses, maintenance, and support. Critics say Section 2B is biased in favor of software vendors. Although this is the dominant issue in this paper, some positive ideas are propagated by the fact that the paper offers virtually no protection to customers. It protects the worst companies from liability for their worst products. This will weaken consumers' legal rights and ultimately reduce software quality across the industry. If this addition to the Uniform Commercial Code passes, you could be giving up a lot more than you bargained for with this click.BIBLIOGRAPHY1. Eisenberg, Rebecca L. “2B or not 2B”;.2. Hoffmann, Thomas. “Users could lose out during code review”; .3. Kaner, Cem. “Bad software: who is responsible?” » ;.4. Kaner, Cem. “What is a serious bug?” Definition of material breach of a software license agreement';.5. Kaner, Cem. “Uniform Commercial Code, Article 2B: A New Law on Software Quality”; .6. Leibowitz, Wendy R. “In New UCC Software Contracts, Is the Customer Always Wrong?” » ;.7. McWilliams, Brian. “The end of software licensing? » ;.8. Nader, Ralph. “Retractable Licenses and the Uniform Commercial Code, Article 2B”; .9. Ring, Jr., Carlyle C. “Attributes';.