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ARTICLE · 25 AUGUST 1998

The Year 2000 Problem - Guidelines for Value Added Resellers

Blank Rome
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United StatesMedia, Telecoms, IT, Entertainment
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By David M. Nadler and Edward W. Kirsch*

The Year 2000 Problem threatens to unleash a barrage of litigation to determine who will bear the burgeoning costs of the Year 2000 remediation effort and the costs of Year-2000 induced business interruptions. Litigation costs are widely expected to exceed $1 trillion. Every member of the production and distribution chain including Value-Added Resellers ("VARs") will be ensnared in these lawsuits as plaintiffs' attorneys seek to recover from the deepest pocket. In the first Year 2000 lawsuit, for example, the plaintiff, Produce Palace International, a grocer, sued the manufacturer and All-American Cash Register, the distributor of its purchasing and inventory control system, after the system crashed 105 times while processing credit cards with expiration dates in the next millenium. Fortunately, there are measures that VARs can undertake to minimize their legal exposure.

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