Failure to test application post to the correction too can cost litigation issues. All suppliers should also provide an express commitment about their compliance's as well as that of the products being supplied. Also, a date for compliance, costs and method used should be determined. As such, contracts from the supplier should include clauses which expresses the ability of its computer hardware and software to be millennium compliant. Because a solution has been found for the millenium issue, directors and corporate officers cannot claim that the problem was beyond their control.
Corporate liability leaves directors liable to shareholder action for damages.
Hence, failure to warn interested parties of the existence of a substantial Year 2000 exposure may be a criminal offence. In addition, liability also extends to third parties. For instance, investors and lending institutions may need to know the compliance of the systems of companies they are investing in. Warren S. Reid, a Year 2000 litigation specialist claims that senior management and directors may contest legal action in the event of Year 2000 incidents if they can produce concrete evidence. This form of legal defence can be utilised in the presence of evidence that proves that the management had undertaken measures to ensure that they have fully educated and trained the staff of the millenium issue.