An Economic Assessment of UCITA

Networks, the Internet, and Cloud Computing and Internet

Article Snapshot


Robert W. Hahn and Anne Layne-Farrar


AEI-Brookings Joint Center for Regulatory Studies, November 2001


This paper looks at a proposed model state law (UCITA) to update contract law for information products like software.

Policy Relevance

Waiting for states to act independently is harmful when inconsistenciees between the states confuse consumers and producers operating nationwide.

Main Points

  • In 2001, the National Conference of Commissioners on Uniform State Laws (NCCUSL) drafted a model law to make contract law for products like software the same in different states.


  • UCITA would reduce costs for consumers and producers, because inconsistencies between states complicate buying, selling, litigation, and negotiations.


  • The states failed to tailor contract law to the computer age in two decades; if they do act individually, inconsistency will continue.

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