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Vol 7 No 1 - Roger Williams University School of Law

Vol 7 No 1 - Roger Williams University School of Law

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quite controversial.49 As the history <strong>of</strong> UCITA demonstrates,there was a two-fold recognition in the drafting process: that tosome extent the application <strong>of</strong> some <strong>of</strong> the sales provisions tos<strong>of</strong>tware and information products was appropriate, but that therewas a need for different rules in certain areas. The firstbattleground has been on where there are sufficient differences tojustify different rules i.e., which <strong>of</strong> Article 2’s rules could beapplied without change to s<strong>of</strong>tware or information contracts.Industry has been adamant in its opposition to the expansion <strong>of</strong>Article 2 in any fashion to cover information products (includings<strong>of</strong>tware).50 That opposition ultimately led to the split betweenArticles 2 and Article 2B. After the split, however, a secondbattleground developed that still persists: what transactions arecovered by the old sale <strong>of</strong> goods rubric (Article 2) and which aresubject to the new act (UCITA).After abandonment <strong>of</strong> attempts to include s<strong>of</strong>tware productswithin the scope <strong>of</strong> the Article 2 <strong>of</strong> the Uniform Commercial Code,efforts were made to define the line between what constitutedgoods (covered by the UCC) and what constituted information(governed by Article 2B or UCITA).51 Since both Article 2 andUCITA contain scope provisions, two different but interrelateddebates flourished. Those supporting UCITA (and its substantiveprovisions) wanted as broad a scope provision as possible in thatact and as restrictive a scope provision as possible for Article 2; inaddition, they wanted to give the parties the ability to opt into thescope <strong>of</strong> UCITA through contract.52 Those opposing UCITA, <strong>of</strong>49. See supra notes 25, 27.50. See, e.g., Lorin Brennan, Why Article 2 Cannot Apply to S<strong>of</strong>twareTransactions, 38 Duq. L. Rev. 459 (2000) (arguing, however, that either Article 2 mustapply in its totality or a separate statute must govern).51. Indeed, not only did the decision to split Article 2B <strong>of</strong>f from Article 2 increasethe importance <strong>of</strong> the scope provisions, it turned the scope provisions <strong>of</strong> both drafts intoa “political football.” See Speidel, Symposium Intro, supra note 12, at 792 (“[A]fter thecollapse <strong>of</strong> “hub and spoke,” there was growing tension between the Article 2 and theArticle 2B projects (now UCITA), both as to the degree <strong>of</strong> textual conformity thatshould exist between them and the line beyond which a sale <strong>of</strong> goods stopped and acomputer information transaction began. That tension persists to this day.”); see alsoAnn Lousin, Proposed UCC 2-103 <strong>of</strong> the 2000 Version <strong>of</strong> the Revision <strong>of</strong> Article 2, 54SMU L. Rev. 913 (2001) (explaining the changes to the draft Article 2). For a critique<strong>of</strong> the current scope provisions <strong>of</strong> UCITA, see Stephen Y. Chow, UCITA: A 1990’sVision <strong>of</strong> E-Commerce, 18 J. Marshall J. Computer & Info. L. 323 (1999).52. The broad reach <strong>of</strong> UCITA, and the potential it might sweep in transactionsthat would otherwise be governed by Article 2, led to a motion at the 1998 ALI AnnualMeeting discussing Article 2B, the predecessor <strong>of</strong> UCITA, to “limit the scope <strong>of</strong> Article

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