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The following item is snipped from a CyberLaw e-mail list I subscribe to.
In light of recent discussions on the Omega-list about (the lack of)
Y2K compliance and support, I offer it up:
"W O R K I N G P A P E R Abstracts
_________________________________________________________________
"When Y2K Causes 'Economic Loss' to 'Other Property'"
BY: PETER A. ALCES
College of William and Mary
School of Law
AARON S. BOOK
College of William and Mary
School of Law
Date: March 1, 1999
Contact: PETER A. ALCES
Email: Mailto:paalce@xxxxxxxxxxxxxxx
Postal: College of William and Mary
School of Law
South Henry Street
P.O. Box 8795
Williamsburg, VA 23187-8795 USA
Phone: (757)221-3842
Fax: (757)221-3261
Co-Auth: AARON S. BOOK
Email: Mailto:asbook@xxxxxxxxxxxx
Postal: College of William and Mary
School of Law
South Henry Street
P.O. Box 8795
Williamsburg, VA 23187-8795 USA
ABSTRACT:
The "Y2K" computer problem, or "Millennium Bug," has already
challenged the products liability law. The failure of some
computer software and embedded systems to recognize the date
change from December 31, 1999 to January 1, 2000 presents
important questions to which established contract and tort
jurisprudence must respond. The costs of Y2K have already been
considerable, and all indications are that there has never
before been similarly pervasive and coincident breach of
contract and tort duties.
In this article, Professor Alces and Mr. Book consider the
legal response to Y2K and posit a frame of reference to account
for the contract and tort theories that may be interposed to
allocate the losses caused by Y2K.
After describing the phases of Y2Kcaused software and
embedded system failure, the authors catalog the incidents of
Y2K that present unique challenges to legal doctrine. They then
explore the fit between the damage caused by noncompliant
software and products and the warranty, negligence,
misrepresentation, and strict liability law.
That survey supports Alcess and Books conclusion that the
strict liability law, as formulated in the Restatement of the
Law (Third) Products Liability, provides viable recovery
theories that may be prosecuted by the victims of Y2K. Though it
is generally assumed that strict liability law does not respond
to pure economic loss (rather than personal injury), Alces and
Book offer a construction of the "other property" exception to
the economic loss limitation that is considerate of
transactional (i.e., bargain) realities and United States
Supreme Court precedent. Succinctly, strict liability for
defective products will provide the means for courts to
compensate those who incur economic loss as well as those who
suffer personal injury as a result of Y2K-deficient software and
products containing Y2K deficient embedded systems.
______________________________
"
Cheers,
Rob Lake
rbl@xxxxxxxxxxx
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