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Business Law Uniform Commercial Code

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Uniform Commercial Code 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. Although the article deals with transfer of goods, there exist some exceptions. For instance, sale of real estate or houses is covered under UCC article 9 but not article 2. Sale of such goods as automobiles falls perfectly under the category of goods covered by article 2. However, transfer of insurance policies does not fall under article 2. The purpose of this article is to regulate sale of goods, and protect the interests of both merchants and non-merchants. The following scenario is designed to demonstrate elements of a valid (or void) contract worth of being protected or enforced by the doctrines of article 2 of the UCC. Scenario Peter, an automobiles merchant, sold his automobile to a customer named Paul. Paul feels that the price of the car was greatly inflated. After covering just a few miles with the car, the buyer realized that the car could not make many miles without being rested for up to one hour. To make matters worse, the seller, Peter, had promised Paul that the car was in perfect condition and could make several miles per day without requiring any mechanical attention. Paul feels that he was duped and he now wants to know whether his contract was within the confines of article 2 of the UCC. What Paul needs to know are the fundamental principles that article 2 of the universal commercial code apply. One of the fundamental principles of the UCC is the concept of good faith between two parties involved in a

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