Vol 7 No 1 - Roger Williams University School of Law
Vol 7 No 1 - Roger Williams University School of Law Vol 7 No 1 - Roger Williams University School of Law
as well, such as the American Bar Association, which hadobservers attending all drafting committee meetings and that isnormally called upon to endorse uniform acts produced by theNational Conference.20 The academic literature abounds withcritiques of UCITA21 and even regulatory bodies such as theFederal Trade Commission have expressed reservations about the554D (West Supp. 2001), 2000 Iowa Legis. Serv. H.D. 2205 (West) (last visited Aug. 8,2001), available athttp://www.legis.state.ia.us/GA/78GA/Legislation/HF/02200/HF02205/Current.html(codified at Iowa Code § 554D.104 (repealed 2001)) (“A choice of law provision . . . whichprovides that the contract is to be interpreted pursuant to the laws of a state that hasenacted the uniform computer information transactions Act . . . or any substantiallysimilar law, is voidable.”); Uniform Electronic Transactions Act, W. Va. Code § 55-8-15(2001), 2001 W. Va. Leg. Serv. 120 (West); Uniform Electronic Transactions Act, ch.2001 N.C. Sess. Laws 2001-295 sec. 66-329 (July 21, 2001). Ironically, at the time WestVirginia passed this provision, it was the home of the president of the NCCUSL. Morerecently, the New York Attorney General’s office proposed legislation would declarethat UCITA violates New York public policy. The concern of the N.Y. Attorney Generalwas the impact of UCITA on consumers, and particularly UCITA’s validation of clickwrapcontracting practices and licenses that “diminish significant rights andprotections established over many years for the protection of consumers” in New York.N.Y. Attorney General’s Legislative Program Bill No. 33-01, 12 BNA Electronic Com. &L. Rep. 288 (2001); see Am. Online, Inc. v. Superior Court, 108 Cal. Rptr. 2d 699 (Cal.Ct. App. 2001) (invalidating a choice of forum and law clause invoking Virginia law,including UCITA, as contrary to California public policy.).20. Typically, upon the completion of new proposed uniform legislation, theNational Conference places the item on the agenda of the House of Delegates of theAmerican Bar Association for ratification by that group. In the year following thecompletion of UCITA, the National Conference submitted a resolution calling for ABAapproval of another piece of electronic commerce legislation, the Uniform ElectronicTransactions Act, but failed to put UCITA on the agenda of the House. To the extentthat this failure illustrated a perception that there would be a fight in the House overany such resolution, the perception has proven to be true. In the Summer of 2001, aresolution was introduced in the House that would disapprove of UCITA and call uponthe Conference to withdraw it as a proposed statute for state enactment. Thisresolution was withdrawn by its sponsor, the Torts Insurance and Practice Section,pending additional discussions between the ABA and the National Conference onsubstantive objections to UCITA. In January 2002 an ABA Working Group issued itsreport on UCITA, describing it as “a very complex statute for even knowledgeablelawyers to understand and apply,” and concluding that in addition to requiringsubstantial changes in many of its sections, UCITA should be “redrafted to make iteasier to understand and use.” American Bar Association Working Group Report onthe Uniform Computer Information Transactions Act (UCITA), Jan. 31, 2002, availableat http://www.abanet.org/leadership/ucita.pdf.21. See, e.g., Symposium, Intellectual Property and Contract Law in theInformation Age: The Impact of Article 2B of the Uniform Commercial Code on theFuture of Information and Commerce, 13 Berkeley Tech. L.J. 809 (1998) (criticizing thepredecessor of UCITA); Symposium, Intellectual Property and Contract Law for theInformation Age: The Impact of Article 2B of the Uniform Commercial Code on theFuture of Information and Commerce, 87 Cal. L. Rev. 1 (1999) (same).
product.22 Whether or not one agrees with the arguments raisedby opponents of UCITA, the fact remains that at this stage thereis no consensus about its acceptability.Last, events occurring in 1999 have undoubtedly had the mostsignificant impact on Article 2B (soon to become UCITA) and itschances of enactability: attempts to include the treatment ofinformation within the Uniform Commercial Code (as Article 2BLicensing) were abandoned; the American Law Institute withdrewfrom the process; and the National Conference reformulated thedraft as a freestanding uniform act. The only “official” reasongiven for the split, according to the joint press release of the twoorganizations, was that “this area [computer informationtransactions] does not presently allow the sort of codification thatis represented by the Uniform Commercial Code.”23 The problemwas much more fundamental.The decision to part ways with Article 2B came after severalyears of mounting tension about this project between the twosponsoring organizations.24 In 1998, and again in 1999, the22. In October of 2000, the Federal Trade Commission held a Public Workshop onWarranty Protection for High-Tech Products and Services devoted almost exclusively towhether the FTC should enact consumer protection provisions to supplement oroverride UCITA. See Federal Trade Commission: Warranty Protection for High-TechProducts and Services, at http://www.ftc.gov/bcp/workshops/warranty/ (last visitedSept. 8, 2001); Letter from the Bureau of Consumer Protection, Bureau of Competition,Policy Planning of the Federal Trade Commission, to Carlyle C. Ring, Jr., Chairman ofthe NCCUSL Article 2B Drafting Committee (Oct. 30, 1998), available athttp://www.ftc.gov/be/v980032.htm (last visited Sept. 8, 2001) (expressing concernsabout Article 2B); Letter from the Bureau of Consumer Protection, Bureau ofCompetition, Policy Planning of the Federal Trade Commission, to John L.McClaugherty, Chair of the Executive Committee of the NCCUSL (July 9, 1999),available at http://www.ftc.gov/be/v990010.htm (last visited Sept. 8, 2001) (stating thatconcerns of prior letter were not addressed in any significant respect).23. Joint Press Release, ALI-NCCUSL, NCCUSL to Promulgate FreestandingUniform Computer Information Transactions Act—ALI and NCCUSL Announce thatLegal Rules for Computer Information Will Not Be Part of UCC (Apr. 7, 1999),available at http://www.law.upenn.edu/bll/ulc/ucita/2brel.htm (last visited Dec. 18,2001) (“The Conference believes that UCITA can provide a framework in which soundbusiness practices may further evolve in the marketplace bounded by standards ofappropriate public policy.”). The press release does not say that the American LawInstitute shared that belief.24. It should be noted that the “tension” referred to is not tension between the twobodies as a whole, but a tension between the leadership of those bodies. UCITA wasnot without controversy even within the NCCUSL process. Objections to UCITA wereso strong that the 1999 motion to refer UCITA for a final vote by the Conference(normally a pro forma matter) was highly debated and only passed by a 37-11 vote withfive abstaining; the final vote of the states on UCITA was 43-6, with two states voting
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product.22 Whether or not one agrees with the arguments raisedby opponents <strong>of</strong> UCITA, the fact remains that at this stage thereis no consensus about its acceptability.Last, events occurring in 1999 have undoubtedly had the mostsignificant impact on Article 2B (soon to become UCITA) and itschances <strong>of</strong> enactability: attempts to include the treatment <strong>of</strong>information within the Uniform Commercial Code (as Article 2BLicensing) were abandoned; the American <strong>Law</strong> Institute withdrewfrom the process; and the National Conference reformulated thedraft as a freestanding uniform act. The only “<strong>of</strong>ficial” reasongiven for the split, according to the joint press release <strong>of</strong> the twoorganizations, was that “this area [computer informationtransactions] does not presently allow the sort <strong>of</strong> codification thatis represented by the Uniform Commercial Code.”23 The problemwas much more fundamental.The decision to part ways with Article 2B came after severalyears <strong>of</strong> mounting tension about this project between the twosponsoring organizations.24 In 1998, and again in 1999, the22. In October <strong>of</strong> 2000, the Federal Trade Commission held a Public Workshop onWarranty Protection for High-Tech Products and Services devoted almost exclusively towhether the FTC should enact consumer protection provisions to supplement oroverride UCITA. See Federal Trade Commission: Warranty Protection for High-TechProducts and Services, at http://www.ftc.gov/bcp/workshops/warranty/ (last visitedSept. 8, 2001); Letter from the Bureau <strong>of</strong> Consumer Protection, Bureau <strong>of</strong> Competition,Policy Planning <strong>of</strong> the Federal Trade Commission, to Carlyle C. Ring, Jr., Chairman <strong>of</strong>the NCCUSL Article 2B Drafting Committee (Oct. 30, 1998), available athttp://www.ftc.gov/be/v980032.htm (last visited Sept. 8, 2001) (expressing concernsabout Article 2B); Letter from the Bureau <strong>of</strong> Consumer Protection, Bureau <strong>of</strong>Competition, Policy Planning <strong>of</strong> the Federal Trade Commission, to John L.McClaugherty, Chair <strong>of</strong> the Executive Committee <strong>of</strong> the NCCUSL (July 9, 1999),available at http://www.ftc.gov/be/v990010.htm (last visited Sept. 8, 2001) (stating thatconcerns <strong>of</strong> prior letter were not addressed in any significant respect).23. Joint Press Release, ALI-NCCUSL, NCCUSL to Promulgate FreestandingUniform Computer Information Transactions Act—ALI and NCCUSL Announce thatLegal Rules for Computer Information Will <strong>No</strong>t Be Part <strong>of</strong> UCC (Apr. 7, 1999),available at http://www.law.upenn.edu/bll/ulc/ucita/2brel.htm (last visited Dec. 18,2001) (“The Conference believes that UCITA can provide a framework in which soundbusiness practices may further evolve in the marketplace bounded by standards <strong>of</strong>appropriate public policy.”). The press release does not say that the American <strong>Law</strong>Institute shared that belief.24. It should be noted that the “tension” referred to is not tension between the twobodies as a whole, but a tension between the leadership <strong>of</strong> those bodies. UCITA wasnot without controversy even within the NCCUSL process. Objections to UCITA wereso strong that the 1999 motion to refer UCITA for a final vote by the Conference(normally a pro forma matter) was highly debated and only passed by a 37-11 vote withfive abstaining; the final vote <strong>of</strong> the states on UCITA was 43-6, with two states voting