Civil Money Penalty Provision In Y2K Law Could Impact Small Device Firms
This article was originally published in The Gray Sheet
Executive Summary
Small device companies potentially could face civil money penalties for failing to comply with year 2000 liability legislation (HR 775) currently awaiting the President's signature.
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Y2K liability legislation
HR 775 is cleared for the President's signature following adoption of the conference report by the Senate (81-18) and House (404-24) on July 1. A compromise was reached with the White House on June 29, clearing the way for final passage and avoiding a threatened veto. The bill caps punitive damages to firms of less than 50 employees at $250,000 or three times compensatory damages, whichever is less, except in cases with fraud. The deal also included alternate language on the obligation of manufacturers to minimize Y2K-related problems
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