Computers A major drawback of excluding software transactions from article 2 coverage is that it pushes the software industry back to pre-U. For example, under the common law if a computer software buyer sent a standard purchase order form to a software producer who responded with a standard purchase order confirmation promising delivery, both parties would assume that a binding agreement was created.
A comparison of software with the many things routinely viewed as goods under article 2 buttresses the conclusion that software is also a good.
Despite the confusing terminology and the continual advances in technology, software embodied in a physical medium is analogous to goods such as a book or an automobile which may embody intellectual property and represent the transformation of intangible ideas and knowledge into a physical form. as a statute and therefore apply it literally would find such licensing transactions outside the scope of article 2 since title to the software is not transferred in the typical license transaction. as a code and have extended the coverage of article 2 to both leases and bailments.
The legal system places great emphasis on precedent, but the technology and market conditions for computers have changed so significantly and rapidly in the last decade that the factual considerations upon which many decisions were based may no longer exist.
One major change, for example, was the transformation of software from an incidental part of a computer system designed to operate only on that system to a separate product which is increasingly independent of the hardware.
Another drawback of reliance on state common law is the lack of uniformity among different jurisdictions. and its elimination was one of the main objectives of the U. A disturbing trend is already evident in the computer area.