Rumbaugh Article on the UCC Article 2

Posted: October 17th, 2013

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Handout – Rumbaugh Article on the UCC Article 2

            The Uniform Commercial Code comprises of a collection of laws that are recommended to cover various issues that arise in the course of commercial transactions. The transactions include contracts related to sales, negotiable instruments, leases, secured transactions, bank collections and letters of credit. The articles in the code cover separate and distinct topics in relation to commercial law. Article 2 is a key component of the code. Article 2 deals with all aspects of sales transactions from the general obligations, contract construction, follow up on the contract and performance as stipulated by the contract.

Article 2 of the UCC has been described as the “bible” for purchases or orders for purchase of goods in the United States of America. The article applies to the transactions of goods that are defined under UCC 2-103. This ultimately has an impact on all professional in buying with the US. The article sets out terms and conditions for sales transactions. However, the article does not deal with service contracts and real estate. Article 2A mainly pertains to renting or leasing of personal property. In this context, personal property encompasses the property, which is not real estate (Miller, et.al, 89). The article mainly sets out to distinguish merchants and consumers.

Merchants customarily deal and transact in commodities. Therefore, they are presumed to have knowledge of the businesses they conduct. However, consumers are presumed not to know the deals and type of goods undertaken during transaction. Article 2 therefore seeks to regulate and manage the contracts and forms of transaction sales between merchants and consumers. The article also deals with breach of sales contract that enforces strict penalties on the party breaching the contract. Article 2 also sets conditions for the risk of loss and offers proper coverage. In addition, the article covers all types of sales whether direct, pro forma or agency-based sales.

At the turn of the 20^th Century, the economy was growing at a tremendous rate. There was need to regulate transactions in a uniform manner. The UCC was adopted in order to protect businesses and consumers. The harmonized law within Article 2 is important to ensure uniformity of sales transactions within states. In addition, some sales occur outside state territory and between states. Harmonizing state law is essential in order to regulate the prevalence of sales transactions extending beyond a single state. It also allows flexibility within states in order to suit local circumstances as enacted in each state. The law allows some level of exceptions from common law in sales contracts. However, the Article 2A that deals with leases has not been adopted by the state of Louisiana (Owens, 87).

Article 2 ensures consumer protection within the established tenets. The article addresses the plight of the consumer to ensure that they receive the best service in sales. The consumer is protected through the regulation of all transactions in the sale of goods. If problems arise and the consumer cites the problems, the article provides remedies to the predicament. Therefore, the consumer is protected from altered sales contracts or poor sales services. If the consumer complains or finds unconscionable provisions in sales contract, a court has the right to discard the contact or sometimes the provisions stipulated.

In conclusion, UCC has been valuable in the establishment of consumer law protection. Consumer law in Article 2 addresses issues and deficiencies that arise in sales transactions and contracts. Since the implementation of the law, there have been changes in sales among the participating sates. Development of the law has improved the quality of sales. Sales contracts are also made by proper integration of the law in order to meet consumer needs.

Work cited

Miller, Frederick H, and John D. Lackey. The Abcs of the Ucc: Related and Supplementary Consumer Law. Chicago, Ill: ABA Section of Business Law, ABA, 2004. Print.

Owens, Keith. Consumer Law. London: Cavendish, 2006. Print