Asked by Jerry Simmons on Jun 29, 2024

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Tech Inc. completes programming and other services for Uno IT Products Corporation. When Uno IT's computer system crashes, the firm loses $500,000 worth of business and pays $100,000 to have the system reprogrammed. Uno IT announces to the media that the crash was due to Tech's incompetence and files a complaint in a federal court against the firm. What are Tech's options in response?

Federal Court

A court established under the federal judicial system of a country, often having jurisdiction over matters involving national laws or disputes between states or between a state and citizens of another state.

Computer System

An integrated set of hardware and software designed to process data and produce a desirable output.

  • Gain an understanding of potential legal defenses and strategic reactions accessible to defendants in civil lawsuits.
  • Learn about the significance of public statements and reputational impact in legal disputes.
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Navneet ThaandiJul 04, 2024
Final Answer :
In response to the complaint, Tech (the defendant)may file an answer in which the firm admits the statements or allegations set out in Uno IT's complaint or denies them and sets out any defenses that Tech may have. If Tech admits to the allegations, a judgment will be entered in favor of Uno IT. If Tech denies the allegations, the matter will proceed.
In the answer, Tech may assert an affirmative defense-that is, admit the truth of the complaint but raise new facts to show that the firm should not be held liable for the damage sustained by Uno IT.
Or Tech could deny Uno IT's allegations and assert a counterclaim alleging that the crash occurred as a result of something Uno IT did.