Law Of Sales And The Uniform Commercial Code

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Law of Sales and the Uniform Commercial Code

Law of Sales and the Uniform Commercial Code

Question 1:

What is the UCC and how does it govern the sale of goods, in general?


The administration of the UCC has an important impact on the economy and upon the rights of the public, in this state & in the United States. The volume of international, interstate & multistate transactions pursuant to the UCC requires that the administration of the UCC be conducted in a manner that promotes both local & multi-jurisdictional commerce by striving for uniformity in policies and procedures among the various states.

Article 9 of the Uniform Commercial Code was amended effective July 1, 2001 as a part of a nationwide effort by the National Conference of Commissioners on Uniform State Laws. The amendments made sweeping changes to the law in Illinois and several other states with the purpose of bringing greater certainty to financing transactions. Section 5 of Article 9 charges the Secretary of State's office with the duty of accepting financing statements for filing and maintaining a record keeping system to allow quick and accurate searches by lenders and others.

The Uniform Commercial Code also seeks to make commercial paper transactions, such as the processing of checks, less complex. It distinguishes between merchants, who know their business well, and consumers, who do not. Overall, the code's objective is to eliminate the need for lawyers in the aspects of commercial trade it governs. The topics specifically addressed in the 11 articles of the Uniform Commercial code include sale of goods, bank instruments, negotiable instruments, letters of credit, and bills of receipts, bulk transfers, investment securities, and secured transactions.

The Uniform Commercial Code, although the most well-known, is one of several uniform acts promoted by the National Conference of Commissioners on Uniform State Laws, established in 1892. Some other examples of uniform acts include the Uniform Child Custody Jurisdiction Action and the Uniform Foreign Money Claims Act. The NCCUSL consists of lawyers and professionals, appointed by states and territories, who discuss which laws should be uniform across the country. The purpose of the American Law Institute, established in 1923, is to clarify American common law according to changing social needs.

Question 2:

Identify and explain the applicable UCC sections relative to Zabriskie Chevrolet, Inc.v. Smith, 240 A. 2d 195(1968).


This action arises out of the sale by plaintiff to defendant of a new 1966 Chevrolet automobile. Within a short distance after leaving the showroom the vehicle became almost completely inoperable by reason of mechanical failure. Defendant the same day notified plaintiff that he cancelled the sale and simultaneously stopped payment on the check he had tendered in payment of the balance of the purchase price. Plaintiff sues on the check and the purchase order for the balance of the purchase price plus incidental damages and defendant counterclaims for the return of his deposit and incidental damages.

Following UCC sections relative to Zabriskie Chevrolet, Inc.v. Smith, 240 A. 2d 195(1968) applicable.

Subsection (2): It is in general intended ...
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