You are a member of the legal department of a relatively new software firm, which is about to release its first product after two years of development. The software was developed for use by owners of rental property and is capable of doing all the necessary accounting, including the calculation of state and federal income taxes, associated with the property rental business. The software has an impressive array of features—many more, in fact, than its competitors—and is priced very competitively. You have been struggling to define the terms of the warranty that will accompany the software product. You want to keep the warranty simple to limit the firm's potential liability in the event it does not meet the expectations of customers. The head of software development, on the other hand, wants to create a warranty that will stand out as far superior to the competition in that it spells out the specifics of what the software will and will not do. What are the pros and cons of each approach?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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You are a member of the legal department of a relatively new software firm, which is about to release its first product after two years of development. The software was developed for use by owners of rental property and is capable of doing all the necessary accounting, including the calculation of state and federal income taxes, associated with the property rental business. The software has an impressive array of features—many more, in fact, than its competitors—and is priced very competitively. You have been struggling to define the terms of the warranty that will accompany the software product. You want to keep the warranty simple to limit the firm's potential liability in the event it does not meet the expectations of customers. The head of software development, on the other hand, wants to create a warranty that will stand out as far superior to the competition in that it spells out the specifics of what the software will and will not do. What are the pros and cons of each approach?
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