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Impact on the Little Guys

Impact on the Little Guys

  • Under UCITA, service contracts are subject to the implied warranties of merchantability and fitness for use.

  • These warranties applied to goods (UCC Article 2) but not to services (not covered by Article 2).

  • Merchantability:

    • 403 (a) (1) the computer program is fit for the ordinary purposes for which such computer programs are used;
    • OK, but how does this play out for custom software that is not fit for such purposes but that does meet the customer’s specification? What if the specification is from unwritten discussion?

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