Sale & Leading of Goods: An Introduction
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) 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. 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. To be identified to the contract a good must be existing and one of the objects that is or will be exchanged. Transactions between merchants and consumers and those solely between merchants are regulated by Part Two. All transactions that are for more that $500 must be in writing.
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. There is also a duty of good faith in the UCC that is applicable to all the sections. If a contract contains unconscionable provisions a court may discard the contract or the provisions.
Federal law has a limited impact on transactions for the sale of goods. The Bankruptcy Code regulates claims arising from sales transactions in bankruptcy cases. The Magnuson-Moss Warranty Act regulates explicit and implied warranties. The Consumer Credit Protection Act provides protection to consumers entering into leases.
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