REVISION OF UNIFORM COMMERCIAL CODE …

1 DRAFTFOR DISCUSSION ONLYREVISION OF UNIFORM COMMERCIAL code article 2 - SALESNATIONAL CONFERENCE OF COMMISSIONERSON UNIFORM STATE LAWSFEBRUARY 1, 1999 REVISION OF UNIFORM COMMERCIAL CODEARTICLE 2 - SALESWITH COMMENTSCOPYRIGHT 1999byTHE AMERICAN LAW INSTITUTEand theNATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWSThe ideas and conclusions set forth in this draft, including the proposed statutory language and any comments orreporter s notes, have not been passed on by the National Conference of Commissioners on UNIFORM State Laws, theAmerican Law Institute, or the Drafting Committee. They do not necessarily reflect the views of the Conference andits Commissioners, the Institute and its Members, and the Drafting Committee and its Members and Reporters.

2 Proposed statutory language may not be used to ascertain the intent or meaning of any promulgated final COMMITTEE TO REVISE UNIFORM COMMERCIAL code article 2 - SALES LAWRENCE J. BUGGE, 313 Walnut Grove Drive, Madison, WI 53717-1228, ChairJOHN FOX ARNOLD, 714 Locust Street, St. Louis, MO 63101 BORIS AUERBACH, 332 Ardon Lane, Wyoming, OH 45215 GERALD L. BEPKO, Indiana University, 355 N. Lansing Street, Indianapolis, IN 46202 AMELIA H. BOSS, Temple University, School of Law, 1719 N. Broad Street, Philadelphia, PA 19122, TheAmerican Law Institute RepresentativeBRUCE A. COGGESHALL, One Monument Square, Portland, ME 04101 CHRISTOPHER D.

3 DINGELL, Box 30036, Room 910, Farnum Building, Lansing, MI 48909 HENRY DEEB GABRIEL, JR., Loyola University, School of Law, 526 Pine Street, New Orleans, LA 70118 BION M. GREGORY, Office of Legislative Counsel, State Capitol, Suite 3021, Sacramento, CA 95814-4996 WILLIAM H. HENNING, University of Missouri-Columbia, School of Law, 313 Hulston Hall, Columbia, MO 65211 PETER F. LANGROCK, Drawer 351, Middlebury, VT 05753 CURTIS R. REITZ, University of Pennsylvania, School of Law, 3400 Chestnut Street, Philadelphia, PA 19104 BYRON D. SHER, State Capitol, Suite 2054, Sacramento, CA 95814 JOHN A. SPANOGLE, George Washington University, National Law Center, 2000 H Street, , Washington,DC 20052, The American Law Institute RepresentativeRICHARD E.

4 SPEIDEL, Northwestern University, School of Law, 357 E. Chicago Avenue, Chicago, IL 60611,ReporterLINDA J. RUSCH, Hamline University School of Law, 1536 Hewitt Avenue, St. Paul, MN 55104, AssociateReporterEX OFFICIOGENE N. LEBRUN, Box 8250, 9th Floor, 909 St. Joseph Street, Rapid City, SD 57709, PresidentBARRY H. EVENCHICK, One Gateway Center, 8th Floor, Newark, NJ, 07102, Division ChairAMERICAN BAR ASSOCIATION ADVISORS DAVID JOEL FRISCH, 1101 W. University Avenue, Champaign, IL 61821, AdvisorKARL B. GRUBE, Pinellas County Court, Room 305, 150 5th Street, N., St. Petersburg, FL 33701, JudicialAdministration Division, National Conference of Special Court Judges Section AdvisorTHOMAS J.

5 MCCARTHY, DuPont Legal, Barley Mill Plaza 17-2286, Wilmington, DE 19805, Business LawSection AdvisorEXECUTIVE DIRECTORFRED H. MILLER, University of Oklahoma, College of Law, 300 Timberdell Road, Norman, OK 73019, ExecutiveDirectorWILLIAM J. PIERCE, 1505 Roxbury Road, Ann Arbor, MI 48104, Executive Director EmeritusCopies of this Act may be obtained from:NATIONAL CONFERENCE OF COMMISSIONERSON UNIFORM STATE LAWS211 E. Ontario Street, Suite 1300 Chicago, Illinois 60611312/915-0195-- iiiiii --Table of ContentsPART 1 GENERAL 2-101. SHORT 2-102. 2-103. 2-104. TRANSACTION SUBJECT TO OTHER 2-105. UNCONSCIONABLE CONTRACT OR 2-106.

6 INTEREST AND PART INTEREST IN 2-107. GOODS TO BE SEVERED FROM REAL PROPERTY; 2-108. EFFECT OF 2 FORM, FORMATION, TERMS, AND READJUSTMENT OF [A. In General]..18 SECTION 2-201. FORMAL 2-202. PAROL OR EXTRINSIC 2-203. SEALS 2-2034. FORMATION IN 2-2045. FIRM 2-2056. OFFER AND 2-206. UNENFORCEABLE TERMS IN CONSUMER iivv --SECTION 2-207. EFFECT OF ADDITIONAL OR DIFFERENT TERMS 2-208. COURSE OF PERFORMANCE OR 2-209. MODIFICATION, RESCISSION, AND Electronic 2-210. LEGAL RECOGNITION OF ELECTRONIC RECORDS 2-211. COMMERCIAL REASONABLENESS OF 2-212. EFFECT OF REQUIRING COMMERCIALLY UNREASONABLEATTRIBUTION 2-213.

7 DETERMINING TO WHICH PERSON AN ELECTRONICAUTHENTICATION, MESSAGE, RECORD, OR PERFORMANCE ISATTRIBUTED; RELIANCE 2B-214. ATTRIBUTION PROCEDURE FOR DETECTION OF CHANGESAND ERRORS; EFFECT OF 2B-215. ELECTRONIC ERROR: CONSUMER 2-216. PROOF OF AUTHENTICATION; OPERATIONS OF 2-217. ELECTRONIC MESSAGES: TIMING OF CONTRACT;EFFECTIVENESS OF MESSAGE; ACKNOWLEDGING vv --SECTION 2-218. OFFER AND ACCEPTANCE; ELECTRONIC 3 GENERAL OBLIGATION AND CONSTRUCTION OF 2-301. HOW CONTRACT PRICE 2-302. PERFORMANCE AT SINGLE 2-303. OPEN-PRICE 2-304. OUTPUT, REQUIREMENTS, AND EXCLUSIVE 2-305. ABSENCE OF SPECIFICATION OF PLACE FOR 2-306.

8 TIME FOR PERFORMANCE NOT 2-307. OPTIONS AND COOPERATION RESPECTING 2-308. FAILURE TO PAY BY AGREED LETTER OF 2-309. SHIPMENT TERMS; SOURCE OF 2-310. TERMINATION; SURVIVAL OF OBLIGATIONS AND 2-311. TERMINATION; 2-312. SALE BY 4 WARRANTIES ..62 SECTION 2-401. 2-402. WARRANTY OF TITLE AND AGAINST INFRINGEMENT;BUYER'S OBLIGATION AGAINST vvii --SECTION 2-403. EXPRESS WARRANTY TO IMMEDIATE 2-404. IMPLIED WARRANTY OF MERCHANTABILITY; USAGE OF 2-405. IMPLIED WARRANTY OF FITNESS FOR 2-406. DISCLAIMER OR MODIFICATION OF 2-407. CUMULATION AND CONFLICT OF 2-408. EXPRESS WARRANTY OBLIGATION TO REMOTE BUYERAND 2-409.

9 EXTENSION OF EXPRESS OR IMPLIED 5 TRANSFERS, IDENTIFICATION, CREDITORS, AND 2-501. PASSING OF TITLE; RESERVATION FOR 2-502. INSURABLE INTEREST IN GOODS; MANNER OFIDENTIFICATION OF 2-503. ASSIGNMENT OF RIGHTS; DELEGATION OF 2-504. POWER TO TRANSFER; GOOD-FAITH PURCHASE OF GOODS; 2-505. RIGHTS OF SELLER'S CREDITORS AGAINST GOODS vviiii --SECTION 2-506. SALE ON APPROVAL AND SALE OR RETURN; 6 2-601. GENERAL 2-602. SELLER'S TENDER OF 2-603. SHIPMENT BY 2-604. SELLER'S SHIPMENT UNDER 2-605. RIGHTS OF FINANCING 2-606. EFFECT OF SELLER'S TENDER; DELIVERY ON 2-607. TENDER OF PAYMENT BY BUYER; PAYMENT BY 2-608.

10 PAYMENT BY BUYER BEFORE 2-609. BUYER'S RIGHT TO INSPECT 2-610. WHEN DOCUMENTS OF TITLE DELIVERABLE ONACCEPTANCE OR 2-611. OPEN TIME FOR PAYMENT OR RUNNING OF CREDIT;AUTHORITY TO SHIP UNDER 2-612. RISK OF vviiiiii --PART 7 BREACH, REPUDIATION, AND 2-701. BREACH OF CONTRACT GENERALLY; 2-702. WAIVER OF BREACH; PARTICULARIZATION 2-703. BUYER'S RIGHTS ON NONCONFORMING DELIVERY;RIGHTFUL 2-704. EFFECT OF EFFECTIVE REJECTION AND JUSTIFIABLEREVOCATION OF 2-705. MERCHANT BUYER'S DUTIES; BUYER'S OPTIONS AS 2-706. WHAT CONSTITUTES ACCEPTANCE OF 2-707. EFFECT OF ACCEPTANCE; NOTICE OF BREACH; BURDEN OF ESTABLISHING BREACH AFTER ACCEPTANCE;NOTICE OF CLAIM OR LITIGATION TO PERSON ANSWERABLE 2-708.