Present commercial law never contemplated the existence of Internet and computer-based transactions. Consequently, parties who engage in Internet and computer-based transactions do so without the certainty and security that the UCC provides parties contracting for the traditional sale of goods and services. For the 3,000 plus technology companies in Virginia, including leading Internet, e-business, system integrator, software and telecommunications firms and small technology companies, uncertainty and lack of clarity threaten business and job growth. Restrictions often are placed on the use of the computer information being licensed. Traditional contract law, based on sales of goods and services, must be modified to reflect the reality of these new transactions.
Small companies play a large role in computer information transactions.
Most software and database companies are small, averaging fewer than 12 employees, but they often develop computer information products of significant commercial value to large companies. Thus, the traditional model of a large manufacturer or seller dealing with small buyers frequently is inverted in computer information transactions. Contract law must be modified to reflect these nontraditional relationships. Computer information transactions implicate fundamental free speech issues. Thus, the law should encourage and facilitate transactions that expand the distribution of computer information.