On July 29, 1999, the National Conference of Commissioners on Uniform State Laws, by a vote of the states 43 to 6, promulgated the Uniform Computer Information Transactions Act (UCITA) for consideration by the various state legislatures for adoption.
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On July 29, 1999, the National Conference of Commissioners on Uniform State Laws, by a vote of the states 43 to 6, promulgated the Uniform Computer Information Transactions Act (UCITA) for consideration by the various state legislatures for adoption.
Part 1 UCITA provides rules to establish norms and to provide guidance when the parties do not deal with a matter in their contracts for computer information transactions. These transactions cover computer software, Internet and online information, multimedia interactive products and computer data and databases. Part 2 of UCITA supplies modified contract formation rules adapted to permit and to facilitate electronic contracting, and rules to determine the terms of contracts formed, including protections against imposed terms, unauthorized communications, and electronic error, and incentives for pretransaction disclosure of all terms to be a part of the contract. Part 3 of UCITA provides rules governing parol evidence, modification, changes in terms, and for interpretation in the absence of explicit treatment by the parties. Part 4 of UCITA adjusts commonly recognized warranties as appropriate for computer information transactions. Part 5 of UCITA provides much needed clarification as to ownership rights and as to the ability to transfer rights under a license, including by way of security so that financing for these transactions can be secured. Part 6 of UCITA adapts traditional rules as to what is acceptable performance to the context of computer information transactions, including providing rules for the protection of the parties concerning the electronic regulation of performance, to clarify that the appropriate general rule is one of material breach with respect to cancellation, and to carry over the familiar rules of Article 2 when appropriate in the context of the tangible medium on which the information is fixed and for impracticability (Subparts B and D). Part 7 of UCITA for the most part carries over the familiar rules of Article 2 concerning breach when appropriate in the context of the tangible medium on which the information is fixed, but also adapts common law rules and rules from Article 2 on waiver, cure, assurance and anticipatory breach to the context of computer information transactions. Part 8 of UCITA provides a remedy structure somewhat modeled on that of Article 2 but adapted in significant respects to the different context of a computer information transaction.