If the system fails, who is liable?

How does an information system manager know who is liable if the system fails? The courts have had difficulty fitting this bifurcated world of goods and services. We, as information specialists, can appreciate that software can be supplied in a variety of forms, some more tangible than others. Programmers might write software for mass distribution, tailor an existing established package, or design from scratch a custom system. Although the majority of courts have yet to face this issue in the precise context of tort liability, most believe the characterization of goods or service is properly determined by the supplier’s degree of involvement with the customer. Examines a number of important issues related to the question of computer information system failures and who may be liable for damages because of the failure. Concludes with a reminder that computer information system failure is not limited to economic loss alone.