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tsld019.htm

Think About This Rule

Think About This Rule

  • Section 405 (a) Unless the warranty is disclaimed or modified, if a licensor at the time of contracting has reason to know any particular purpose for which the information is required and that the licensee is relying on the licensor's skill or judgment to select, develop, or furnish suitable information, the following rules apply:

    • (1) Except as otherwise provided in paragraph (2), there is an implied warranty that the information is fit for that purpose.
    • (2) If from all the circumstances it appears that the licensor was to be paid for the amount of its time or effort regardless of the fitness of the resulting information, the implied warranty is that the information will not fail to achieve the licensee's particular purpose as a result of the licensor's lack of reasonable effort.

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