Review existing contracts and maintenance agreements. The year 2000 computer glitch can be traced to the early days of computing, when memory and data storage were very expensive. To conserve these limited resources, computer programmers decided to use just two digits in date fields to identify calendar years. This error may cause systems to process incorrect data or simply shut down. VARs Are Vulnerable VARs, consultants and systems integrators are especially vulnerable to breach of warranty suits arising from year 2000 system failures because they often warrant the performance of components they do not control, as well as the systems they recommend.
Customers can sue VARs under breach of express or implied warranty theories.
Any promise or description relating to goods sold, whether in a contract document, advertisement, letter or other correspondence can create an express warranty that the goods conform to the promise or description. Careless or over-broad language, therefore, can give rise to unintended express warranties. Whether such language constitutes an express warranty is often a jury question, which enhances a plaintiff's settlement leverage by avoiding defeat on summary judgment. Although few VARs made explicit year 2000 warranties prior to 1996, many have warranted aspects of performance for an extended period or entered into maintenance agreements that span the millennium change that can be construed as warranting year 2000 compliance. The UCC also recognizes implied warranties.