AdministratorWhat is Article 2 of the Uniform Commercial Code?
Article 2 of the UCC (MCL 440.2101 et. seq.) governs the sale of goods. Article 2 is meant to provide default rules and gap-fillers that apply where two parties have not comprehensively addressed common issues in a written contract.
What does the Uniform Commercial Code Article 2 have to do with contract law?
Article 2 of the UCC governs the sale of goods, which is defined by ยง2-105 and includes things that are moveable, but not money or securities. It does not include land or houses. Contracts between merchants are also governed by article 2 of the UCC.
What does the Uniform Commercial Code cover?
The Uniform Commercial Code (UCC) contains rules applying to many types of commercial contracts, including contracts related to the sale of goods, leasing of goods, use of negotiable instruments, banking transactions, letters of credit, documents of title for goods, investment securities, and secured transactions.
What is an example of Uniform Commercial Code?
Generally, the UCC applies to sales of goods that involve a merchant. The following examples illustrate when the UCC applies to a contract for the sale of goods….When Does the UCC Apply?
| Situation | Does the UCC apply? |
|---|---|
| A rug dealer buys some rugs from a weaver who is not a business person. | Yes |
Who does Article 2 of UCC apply to?
UCC Article 2 applies to the sale of goods between merchants or between a merchant and a non-merchant. As such, merchants are required to follow certain standards of conduct when engaging in a business or commercial contract. Transactions between non-merchants are not covered by Article 2 UCC.
Does UCC Article 2 apply to consumers?
Article 2 of the UCC deals only with transaction of goods. It does not apply to any transaction intended to operate only as a security transaction. However, the Article does not impair or repeal any statute regulating sales to consumers, farmers or other specified classes of buyers.
Who does UCC Article 2 apply to?
Which of the following is governed by Article 2 of the UCC?
the sale of goods
Uniform Commercial Code Article 2 governs the sale of goods. It was part of the original Uniform Commercial Code approved in 1951. Article 2 represented a revision and modernization of the Uniform Sales Act, which was originally approved by the National Conference of Commissioners on Uniform State Laws in 1906.
What is the difference between common law contract and UCC Uniform Commercial Code?
Contract law is governed by the common law and the Uniform Commercial Code “UCC.” Common law governs contractual transactions with real estate, services, insurance, intangible assets and employment. UCC governs contractual transactions with goods and tangible objects (such as a purchase of a car).
What is the purpose of the Uniform Commercial Code UCC?
Created by the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute (ALI), the primary purpose of the UCC is to make business activities consistent and therefore efficient, across all U.S. states.
What is not covered by Article 2 of the UCC?
What Is UCC Article 2? Transactions between non-merchants aren’t covered. The reason for this is that merchants are deemed to have special knowledge in their business practice; ordinary citizens don’t usually have such knowledge and therefore UCC standards don’t apply to them.