BUSINESS people who rely on computers will generally have become aware of the Year 2000 problem with their computer software.

But solicitor, Alex Megaw, who lives in Northwich, has issued a warning to those who may have remained complacent about the danger which draws ever closer.

In simple terms many Software Manufacturers used six digit dates ie 15 04 97, in order to save valuable memory space but in doing so overlooked or ignored the fact that 1900 and 2000 are both signified by the year "00" in this system.

The result when these systems tick past midnight on December 31 1999 will be systems crashing or producing gobbledygook.

Mr Megaw, who works for Davies Wallis Foyster Solicitors in Manchester, believes many businesses have remained complacent to the threat either because the nature of it is not properly understood or because the cost and disruption of rectifying the problems is too horrible to contemplate.

He says: "The potential for business disruption is huge - just imagine the effect on your business in invoicing, stock control, credit control and other critical daily routines.

"In the meantime, some businesses will lose their legal rights against their software suppliers.

"Software supplied on disc or tape has been held to be "goods" within the Sale of Goods legislation and must comply with its requirements in terms of fitness for purpose and satisfactory quality.

"The buyer of the software may well have remedies against the supplier in damages or be entitled to reject the software or to rescind the contract of supply."

Mr Megaw emphasises the individual terms of the contract have to be considered and the claim must be brought within six years of the date when the cause of action arose.

Formany that means time is running out.

Mr Megaw said: "There are still too many companies who have not addressed this matter, I would advise them to act now to ensure they are not caught out."

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