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The rapid development of computer technology has caused problems for consumers. People who bought computers several years ago now find that their hardware has become outdated, is difficult and costly to maintain, and is not compatible with new software programs. Others, not familiar with computer technology, are misled by high-pressure salespeople who offer systems promising to do specific chores but that fail to deliver.

Before you buy a computer, know what the system is supposed to accomplish. Familiarize yourself with basic computer phraseology. Talk to friends and business associates to learn what they use. Prepare a list of points to consider before speaking with a salesperson. This should include:

• the software you wish to buy

• the cost of the hardware and any hidden service and installation charges

• the system's power, reliability, speed, memory capacity, and potential for expendability

• the system's ease of operation, programming, and memory

• the company's guarantees, warranty, and maintenance policies

• the tax ramifications of your purchase (a salesperson may be unable to explain this)

Comparison shop to get an idea of the kinds of systems and deals available. Be aware of the relative costs of each component. Sometimes a package deal will save you money; sometimes it won't. If you know absolutely nothing about computers and intend to make a sizable investment, consider hiring a consultant. Computer consultants act like real estate brokers. They shop around and help you select equipment to fill your needs. Ask for references and check them out. Be sure you know exactly what the services will cost.

Write down all promises made by a salesperson regarding how the system will perform, its capabilities, and what it will do. This may help you recover damages in the event of a future dispute.

Software. Decide what software you intend to use before you buy the hardware. The software tells the computer what to do; without it, the computer cannot do the job properly.

Some people hire computer programmers to write programs specifically suited to their needs (custom software). Others hire consultants to perform the programming. The majority of purchasers use existing programs (packaged software). Regardless of the type of software used, legal problems frequently develop.

• The software cannot be properly implemented into the system.

• The software fails to accomplish promised results.

• The software is misused by the purchaser.

Lawsuits often arise because the software fails to perform a specific job. This happens when the salesperson fails to describe clearly the specific functions the software can perform.

Consider the following points before selecting software:

1. Function. Define what the program will accomplish.

2. Ownership. Will the software be rented for one time, multiple, or unlimited use? Can it be purchased, or is it being made available on some other basis?

3. Revisions. If the seller updates the software on a regular basis, will you receive revised versions? Will you have to pay for this?

   How long will you receive program revisions? If additional training is required, who pays for it?

4. Implementation.  Can the software be used in another computer system, or are you restricted to using it in only one system? If no restrictions are imposed, be sure that additional fees will not be charged.

5. Assistance. Will the seller provide help if the program isn't working properly?

6. Assurances. Is the program "error-free," or are you purchasing it "as is"? If you are acquiring the program as is, demand a demonstration before paying to be sure that the program works to your satisfaction.

7. Payment. Is payment due on signing of the contract, when the software program is delivered, after it is installed, or after you receive a satisfactory demonstration? You may find a progress payment schedule advantageous (one-third of the amount on signing, one-third on installation, and the balance on satisfactory completion).

8. Time restraints. Do you need the software by a specified date? If so, the agreement should state that "time is of the essence." It should also say, if possible, that if you don't receive the functional software by a certain date, you can cancel the agreement, recover your deposit, and sue for damages. If you are to receive the software in stages, ask for periodic written reports. You can then make alternative plans if the seller cannot make timely delivery.

9. Liability. The contract should state that:

   • The seller is not violating copyright and other laws by selling you the program.

   • The seller will indemnify and hold you harmless.

   • The seller win pay for all costs of legal representation should you be sued by a third party through no fault of your own.

10. Restrictions. The seller will probably impose restrictions on your use. Most companies spend substantial sums of money to develop computer programs and do not permit purchasers to copy or disclose the contents or results to unauthorized third parties. Try to limit these restrictions. In any event, be sure they are not violated.

Select a hardware system that is compatible with your software. Many computer manufacturers sell adaptable software programs, but you are not limited to selecting programs from the manufacturer. Try to buy a computer with:

• a large memory capacity

• sufficient power

• ability to be upgraded to handle more sophisticated software programs

• a proven track record, and not an experimental model

Payment.  There are a number of ways to structure the deal. These include an outright purchase for cash; a purchase with financing from the seller, bank, or lending institution; a close-end lease; or a lease with an option to purchase.

Inspect the system immediately when you receive it to be sure that it wasn't damaged in transit. Request that it be assembled as soon as possible. This will increase your rights.

Disclaimer clauses.  Computer manufacturers often seek to limit their legal exposure in the event the computer falls to function properly. This is called a "disclaimer," or "limitation of liability" clause. The following is an example:

The manufacturer's entire liability and the customer's exclusive remedy shall be the adjustment, repair, or replacement of defective equipment. The manufacturer's liability for damages to the customer for any cause whatsoever, and regardless of the form of action, shall be limited to the greater of $5,000 or the purchase price stated within.

These clauses are unfair, and judges often refuse to enforce them against consumers.

1.  Beware of sales misrepresentation: The sales talk is the time to get answers to your questions. Have a list of what you want to ask. Don't allow the salesperson to tell you what you need-you tell him or her.

   Don't buy on the basis of a fancy brochure. Demand to see a working prototype or program application before making an investment.

   Under the law, express warranties are created when a manufacturer (through its salespeople) makes statements of fact about the capabilities of a product or service. If you rely on these factual representations, purchase the product or service, and the statements prove to be false, you are entitled to recover damages. Writing down statements (about how the computer will perform in a certain situation) may help you prove your claims.

2.  Beware of unusually low prices. Some companies offer a low price by stripping off standard components and then selling them back to you as costly accessories. Low prices might also indicate reconditioned equipment or cheap imitations. Always try to get a warranty, even when buying discounted merchandise.

3.  Since software can contain a virus, be careful dealing with third parties. Ask if the disk has been tested for viruses before using it in your system.

4.  Be particularly wary of buying used equipment. It may not be covered by a warranty or it may already be out of date, making it difficult to service.

5.  Get a written contract: Before spending several thousand dollars, review the agreement carefully. Standard contracts are prepared by legal staffs of computer vendors and contain clauses that benefit the seller, not the buyer.

   Most computer hardware and software manufacturers and dealers refuse to negotiate standard sales and service agreements in the 81,000-$5,000 range. These contracts seldom vary from one dealer to the next, so consumers have trouble shopping for better terms and warranties. However, you or your lawyer can probably negotiate more favorable terms if a more expensive purchase is involved (such as for a business).

   Some sales contracts limit damages to the purchase price. While this clause can cut off your rights, don't assume you are precluded from recovering damages if you sign a standard contract with a disclaimer limiting your remedies. Although the law varies considerably from state to state, many judges find such clauses unconscionable, and therefore unenforceable. Always try to negotiate, but recognize your rights even if you sign a standard computer contract.

6.   Be sure to fill out and return all registration cards. This allows the company to inform you of any problems with the product and how to correct them.

7.  Avoid paying the final installment until all flaws are corrected.

8.  Keep accurate records after you acquire the equipment. Your contract, correspondence, and letters of protest will help prove your claim in the event of a dispute.

In general, consumers are entitled to a refund for defective or damaged goods (not marked "as is") and misrepresented items. Most states have no typical refund law that applies to all retail establishments-refunds range from "100% money-back guarantees" to "no refunds or exchanges," depending on the retailer. But in some states, the law requires that refunds be given when policies are not properly posted. For example, retailers who do not give a cash refund within 20 days must conspicuously display their policy by attaching it to the item itself, at each cash register or point of sale, or making the policy clearly visible at each store entrance. The sign must tell whether the merchant gives refunds, and if so, under what conditions. You must also be told of time limits in which to obtain the refund and whether you are entitled to a cash refund or store credit. Check the law in your state by calling your local Better Business Bureau.

Cynthia purchased an expensive custom couch from a specialty home furnishings store. The salesperson assured her that the couch would be shipped to the store from North Carolina, where it was manufactured, in a few weeks. Cynthia wrote "time is of the essence" on the sales purchase agreement, with an outside delivery date Of two months. Two months later, the salesperson called Cynthia to advise that the couch was still not there but "not to worry, it should be delivered in a few more weeks." Furious, Cynthia canceled the contract by certified letter, return receipt requested, and demanded the return of her deposit. She threatened in writing to contact the Better Business Bureau when her sizable deposit was not returned. Her deposit, with interest, was returned shortly thereafter.

Under the laws of some states, businesses that sell home furnishings and major appliances arc required to list the delivery date or range of dates in writing on your contract or sales slip at the time the order is taken. The business must deliver the merchandise by the latest stated delivery date unless you are notified of the delay and agree to the revised delivery date. If the company falls to deliver the goods by the original promised date and you do not consent to the delay, you can:

• cancel the contract and obtain a full refund of your deposit or partial or full payment within two weeks of the company's receipt of your request

• negotiate a new delivery date
• cancel the contract and obtain a credit for the deposit

• select new merchandise

  If the delay was caused by a factor not in the retailer's control, such as a labor or shipping strike, or it was your fault, then the above does not generally apply.

If you do not receive goods on time, document your cancellation in writing, sent by certified mail, return receipt requested. The letter should state the amount of money to be refunded and when you expect to receive it. It should also state the name(s) of the persons spoken with and other pertinent facts.

Many appliance manufacturers have trained repair people who are skilled in a particular brand of appliance and will use parts specifically manufactured for that model and brand. You will save yourself a good deal of trouble if you call in the brand, model, and serial number from the nameplate when you make your initial call for help. (The nameplate is usually tucked away near an inside door.) Should you have continuing problems with your appliance and/or authorized repairs, you may try to resolve these by writing to:

MACAP is an industry-sponsored but independent group of consumer experts who receive and act on complaints from appliance owners.

Finally, think seriously before purchasing an extended warranty or a service contract for your appliance or electronic equipment.

Service contracts are regularly "Pushed" on consumers by store salespeople with good reason: Often the salespeople receive large commissions on them. Consumer Reports recommends that consumers think twice before wasting money on such contracts. When buying a new television, CD player, or other expensive equipment, chances are the device will not need to be repaired until long after the purchase and after even the "extended" warranty has expired.