At that time, computer memory was very costly. Programmers vastly reduced the amount of information they needed to input into the system by simply providing a two-year identifier. Predictions as to the consequences of this problem are becoming increasingly alarming. Federal Reserve Chairman Alan Greenspan has warned that the computer problems associated with the Year 2000 could hurt the United States economy. The predictions as to the costs associated with remedying the Year 2000 are mind-boggling.
Source code can run in the millions of lines.
Legal costs associated with the Year 2000 problem are even more staggering. In Michigan, a grocery store alleges that it installed a cash register system allowing its customers to use a credit card to pay for grocery store purchases. The grocery store alleges severe loss of business as a result of this problem. Produce Palace Int'l v. TEC America Corp., Michigan, Macomb City Cir. There can be no assurance that another company's failure to ensure year 2000 capability would not have an adverse effect on the Company.