Law of Sales and the Uniform Commercial Code



Law of Sales and the Uniform Commercial Code

The Uniform Commercial Code has been implemented and applicable in almost all 50 states of USA. Article 2 of the universal commercial code, or simply article 2 of the U.C.C, deals precisely with transactions dealing with sale of goods. While other articles of the UCC covers other elements, article 2 concentrates on sale of goods only. The article defines goods as anything moveable or identifiable before and at the time of sale. This article does not deal with transfer of service contracts. With respect to UCC, several aspects of contracts are relevant to understand such as Tender, Acceptance, Rejection, and Revocation. This law was initially developed in 1952 as part of the uniform acts with respect to sales transactions and associated laws that represent commercial laws (Flinn, M., (n.d.). The main reason behind the concept of UCC is that, often in today's society, those transactions and sales tend to extend beyond the jurisdiction of a given state. For instance, a particular product may be manufactured in California, warehoused in Arizona, sold in Texas and delivered in Michigan. The beneficial effects of uniformity law has successfully increased the flexibility of commercial transactions and contracts across all states that has helped organizations to cater local demand of their products as well.

This paper is aimed at analyzing the UCC aspects of sales contract utilized by Apple Inc. The sales agreement for downloading digital music by Apple Inc (Onecle, 2003), is given in the Appendix of this paper. The stated contract lies under the jurisdiction of article 2 of UCC as the sales agreement is regarding the musical product that is to utilized online over the Internet. The contract is in between two parties out of which one is buyer and seller where buyer is any other company like Audible.com, digital music works international Inc. etc. The seller itself Apple Inc. lies under the definition of merchant that primarily deals in selling computer related products and software. The agreement of sales complies with the requirements of UCC article 2 by its formal representation in form the stated agreement in written or printed form indicating the amount to be received in between both the parties and signed as well for authorization purposes. It also shows the date of authorization and sale i.e. effective date of the sale agreement. Furthermore, the agreement of sale is comprised of all the necessary terms and conditions agreed and mentioned by both the parties involved in the contract such as amount to be received, effective date of contract, name of merchants involved in contract, definition and explanation of all the essential elements for detailed and clear explanation of the agreement, deletion or renewal of the previous agreements between both the parties if any, mode of payment, use of product sold to the buyer, applicable royalties, taxes, and discounts and many more.

The contract of sale by Apple Inc. clearly states the acceptance of the contract and modifications ...