it or implied in the transaction. Another issue would be of the statute of limitations. Generally warranties does not last as long as acceptance and delivery of the goods. Many are discussing of alternatives to all possible litigation and product liabilities. But, prudent business managers should not count on it to defend themselves(11). Many experts say that disclosure is the best defense against Y2K litigation – the board of directors and shareholders need to know. SEC advised companies to "disclose internal Y2K issues, relationships with customers and suppliers, a timetable for carrying out the plans, and a total dollar amount the customer estimates will be spent on Y2K issues."(8) Some government agencies are trying to pass laws that may protect them. However, that is not a choice for companies. In California, a bill has been proposed that, if passed, will limit awards for year 2000 lawsuits to ‘reasonably incurred costs regarding relevant computers and software’ and may weaken businesses’ ability to recover actual damages (9). A case for contingency planning When an information system group at the state of Washington performed a routine test of its disaster recovery plan two years ago, it also decided to take a look at its year 2000 problem. But when they set the mainframe’s system date forward to 2000, it caused the entire test to crash. The computer informed that testers’ passwords has expired (4). The moral of the story is that the companies not only need contingency plans, it also needs to test those plans thoroughly. But it remains an idea that many companies do not adopt. Preparing for the Year 2000, contingency planning is not only a good idea, but one that should not be ignored. Study shows that companies that need contingency plans are least likely to have them. Washington’s Department Social and health Services is field testing a commercial accounts payable package that can be tur...
