The Uniform Commercial Code Survey: Introduction.

Citation metadata

Date: Fall 2021
From: Business Lawyer(Vol. 76, Issue 4)
Publisher: American Bar Association
Document Type: Article
Length: 1,387 words
Lexile Measure: 2040L

Document controls

Main content

Article Preview :

The survey that follows highlights the most important developments of 2020 dealing with domestic and international sales of goods, personal property leases, payments, letters of credit, documents of title, investment securities, and secured transactions.

There were interesting developments under Article 2 of the Uniform Commercial Code ("U.C.C."), including cases that implicated Article 2's provisions governing additional terms in a seller's acceptance and express warranties. The Vermont Supreme Court reversed the trial court's denial of attorneys' fees in one case, concluding that where the buyer had not objected, the burden of proof would be on the buyer to show materiality and the trial court had not made findings of fact as to whether the seller's additional attorneys' fees provision was material. (1) In another case, the buyer of a used tractor was able to bring claims for breach of express warranties based on statements in the signed purchase order that the tractor would have "500 to 600" hours of use, when the tractor tendered by the seller had 886 hours on it. The court rejected the seller's argument that its statements regarding hours were "sales talk," where the parties understood the buyer only desired to purchase a low-hours tractor and was induced to place the deposit based on the statements. Moreover, the court awarded damages that included lost profits on reduced crop yield where the buyer was unable to secure a replacement low-hours tractor. (2)

The survey of cases under the United Nations Convention on International Sales of Goods ("CISG") covered one notable case that considered whether the CISG preempts tort claims where a buyer asserts both tort and contract claims. The court held that the CISG preempted the buyer's fraud and misrepresentation claims, but not its claim for tortious interference. (3) The court explained that while the CISG preempts state contract law, it has no application to claims arising in tort. (4)

Perhaps the most noteworthy equipment leasing case decided in 2020 involved the commercial law characterization of a purported lease in the context of a U.S. Bankruptcy Court proceeding. The bankruptcy trustee in a chapter...

Source Citation

Source Citation   

Gale Document Number: GALE|A681135808