Are there any laws that regulate the sale of used software?
Yes, there are laws that regulate the sale of used software in New York. The law is summarized in General Business Law (GBL) § 396-z. This law makes it illegal for any person, firm, corporation, or association to sell or offer for sale at retail or wholesale any used software without disclosing all of the following information to the consumer: 1) Any material defects related to the software; 2) If the software is not a genuine version, whether or not it is pirated; 3) The fact that the software has been previously used, unless the consumer has already been informed of this fact; 4) The type of warranty or right a buyer has upon purchasing the software; 5) The name and address of the seller. Under this law, a seller can face a civil penalty of up to $2,000 for each violation. Furthermore, any person who is found to have violated this law may also be liable for any damages arising from the sale of the software, whether or not the consumer has knowledge of any of the above listed information. Finally, any person who resells any software must make sure that the original license agreement accompanying the software has been updated to reflect the new owner. The seller must provide a new valid license agreement with the sale of the software, as this is required by law in New York.
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