sales law: an overview

Transactions for the sale (and leasing) of goods is governed mainly by sales laws of each state. Every state, with the exception of Louisiana, has adopted, Article Two of the Uniform Commercial Code (UCC) (http://www.law.cornell.edu/ucc/2/) as the main body of law regulating transactions in goods. Goods are defined as all things movable and identified to the contract of the sale. See § 2-105 of (http://www.law.cornell.edu/ucc/2/2-105.html) the UCC. It does not include secured transactions, leases, money exchanged as the price, or real property (land and property permanently attached to a piece of land). See Secured Transactions (http://www.law.cornell.edu/topics/secured_transactions.html). To be identified to the contract a good must be existing and one of the objects that is or will be exchanged. See §§2-106(1) (http://www.law.cornell.edu/ucc/2/2-106.html) & 2-501(1) (http://www.law.cornell.edu/ucc/2/2-501.html) of the UCC. Transactions between merchants and consumers and those solely between merchants are regulated by Part Two. All transactions that are for more than $500 must be in writing. See §2-201(1) (http://www.law.cornell.edu/ucc/2/2-201.html) of the UCC.

Article 2 regulates every phase of a transaction for the sale of goods and provides remedies for problems that may arise. It provides for implied warranties of merchantability and fitness. See §§2-314 (http://www.law.cornell.edu/ucc/2/2-314.html) - 2-315 (http://www.law.cornell.edu/ucc/2/2-315.html) of the UCC. There is also a duty of good faith in the UCC that is applicable to all the sections. See § 1-203 (http://www.law.cornell.edu/ucc/1/1-203.html) of the UCC. If a contract contains unconscionable provisions a court may discard the contract or the provisions. See § 2-203 (http://www.law.cornell.edu/ucc/2/2-203.html) of the UCC.

Leases were traditionally governed by Article 2 (http://www.law.cornell.edu/ucc/2/overview.html) or Article 9 (http://www.law.cornell.edu/ucc/9/overview.html) (secured transactions) of the UCC. This caused confusion and disparate application of the law to leases. In 1987 Article 2A was added to the UCC to regulate leases for goods. It has been adopted, or is being considered for adoption, in a number of states.

Federal law has a limited impact on transactions for the sale of goods. The Bankruptcy Code (Title 11) regulates claims arising from sales transactions in bankruptcy cases. The Magnuson-Moss Warranty, 15 U.S.C. § 2301, Act regulates explicit and implied warranties. The Consumer Credit Protection Act provides protection to consumers entering into leases. See 15 U.S.C. § 1667.

In 1988, the United States joined the United Nations Convention on Contracts for the International Sale of Goods (http://cisgw3.law.pace.edu/).

menu of sources

Federal Material

Federal Statutes

• U.S. Code:
  • Magnuson - Moss Warranty Act, 15 U.S.C. § 2301 et seq.
  • Consumer Credit Protection Act, 15 U.S.C. § 1667 et seq.

Federal Judicial Decisions

• U.S. Supreme Court: Recent Decisions Concerning the Sale of Goods (http://supct.law.cornell.edu/supct/search/index.html?query=(sale+and+goods)+or+ucc)
• U.S. Circuit Courts of Appeals: Recent Decisions Concerning the Sale of Goods (http://www.law.cornell.edu/usca/search/index.html?query=(sale+and+goods)+or+ucc)

State Material

Uniform Laws

• Uniform Commercial Code Article 2 (http://www.law.cornell.edu/ucc/2/overview.html)
• Uniform Commercial Code Article 2A (http://www.law.cornell.edu/ucc/2A/overview.html)
• Uniform Commercial Code Article 9 (http://www.law.cornell.edu/ucc/9/overview.html)

State Statutes

• Uniform Commercial Code as Adopted by Particular States (http://www.law.cornell.edu/uniform/ucc.html)

State Judicial Decisions

• N.Y. Court of Appeals:
  • Recent Sales of Goods Decisions (http://www.law.cornell.edu/nyctap/search/index.html?query=((sales+and+(goods+or+merchandise))+or+ucc)+not+liibulletin)
  • Commentary from liibulletin-ny (http://www.law.cornell.edu/nyctap/search/index.html?query=liibulletin+and+((sales+and+(goods+or+merchandise))+or+ucc))
• Appellate Decisions from Other States (http://www.law.cornell.edu/states/)

International Material

Conventions and Treaties

• UN Convention for the International Sale of Goods (http://cisgw3.law.pace.edu/)

Other References

Key Internet Sources

• Federal Agency:
  • U.S. Federal Trade Commission (http://www.ftc.gov/)
• Consumer Law Page (http://www.consumerlawpage.com/)
• The Better Business Bureau (http://www.bbb.org/)
• Institute of International Commercial Law (Pace) (http://cisgw3.law.pace.edu/)

Useful Offnet (or Subscription - $) Sources

• Good Starting Point in Print: James White and Robert S. Summers, Hornbook on the Uniform Commercial Code (http://west.thomson.com/product/14551958/product.asp), West Group (2000)
• LII Downloads (http://www.law.cornell.edu/disks96.html)

other topics

Category: Commercial Transactions