Law of Sales and the Uniform Commercial Code

Law of Sales

The Uniform Commercial Code is one of the most important uniform acts that were promulgated in order to unify the sales laws and other commercial transactions within all the states of the U.S. The importance of this code relies on the fact that commercial transactions have an increased prevalence beyond one state. In other words, certain products can be manufactured in a certain state, assembled in another state, warehouse in another state, processed in another state, and sold in another state. Therefore, this has determined the necessity of using a uniform code.

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In addition to this, the uniform code provides the benefit of allowing these states the flexibility they require in order to respect their local regulations. This objective can be reached by modifying the text of the uniform commercial code in accordance with the requirements of each state. The uniform commercial code was developed in order to focus on transactions that refer to personal property mostly.

The sale of goods has been significantly influenced by the development of the uniform commercial code. The problems determined by the code can be identified in the beginning, after the code was elaborated. This is because commercial parties involved in transactions within the U.S. had to modify their contracts in order to respond to the requirements of the uniform commercial code. In addition to this, they had to develop their commercial activity based on the uniform commercial code modified in accordance with local requirements.

The articles of the uniform commercial code refer to general provisions, sales, leases, negotiable instruments, bank deposits, funds transfers, letters of credit, bulk transfers and bulk sales, warehouse receipts, bills of lading and other documents of title, investment securities, and secured transactions. There are also other issues addressed by the code. It is likely that other articles can be developed in accordance with the requirements of the business environment.

2. The situation of Zabriskie and Chevrolet is an important issue that reflects the requirements of the uniform commercial code. Zabriskie purchased a new Chevrolet car that started to frequently stall from the way home from the dealership. It seemed that car could only be driven in low gear. Therefore, the buyer rejected the car and stopped paying the checks that were required in order to purchase it.

The dealer did not agree with the situation. They said that the buyer had the opportunity to inspect the car while driving it around the block. During this time, the car was reported to not have any problems, and that meant that the car was in order.

The customer and the dealer did not resolve their dispute. Therefore, they had to go to court in order to settle their situation (Autopedia, 2012). The New Jersey court said that it is difficult for customers to inspect and to identify the problems of the cars they purchase. This is because in order to reach this objective, the customer should have strong knowledge of mechanics. In addition to this, the customer should be allowed to disassemble the vehicle in order to determine whether there are certain problems that have not yet been identified by the producer or the dealer.

The dealer in this case stated that the customer had the opportunity of identifying such problems during the drive around the block performed by the customer before purchasing the car. But the court stated that this is a short length that cannot be used in determining such problems. In addition to this, the court stated that it is important that such problems are observed in the first miles when the car is driven because they can provide important information on the situation of the car.

The decision of the court and the requirements of the uniform commercial code are likely to favor the customer and the use of the product. This is because the time provided by the buyer in order to inspect the product is not long enough in order to reach this objective. Therefore, it is important to determine how these problems can be identified. The applicable uniform commercial code sections in this case are represented by nonconformity sections.

3. In the Zabriskie case, the problem with the revocation of the contract depends on the period the customer has used the product in case. In the Zabriskie situation the period was not considered long enough in order to determine the problems of the car in case. In situations where the customer has used the car for a longer period of time, the dealer can refuse to revoke the contract.

The uniform commercial code states that the buyer can revoke the acceptance of the products in case their nonconformity significantly influences the value of the products at the time the customer accepted them without knowing their non-conformity problems. The acceptance of products that are in nonconformity can be attributed to the fact that the problems were difficult to identify, or to the fact that the customer was assured that the non-conformities can be repaired.

In the case of car, the customer usually identifies non-conformities after a longer period of time. This is because it is difficult to discover non-conformities in cars by individuals that have little knowledge in this field. In addition to this, in the case of cars the customer is assured that non-conformities that can be discovered after the purchase can be repaired by the dealer.

Such problems are frequent in the case of cars. Therefore, manufacturers usually compete in providing quality warranties to customers about the high quality of the products they provide. In addition to this, they also provide service in order to repair such problems.

It is important to determine the nonconformities that can significantly influence the value of cars. Such nonconformities can refer to minor flaws that can lead to substantial problems. This situation can be observed in the Zabriskie case and refers to shaking the faith of the customer. In other words, this refers to the trust of the customer in the seller.

The purchase of cars is a significant investment. In addition to this, it ensures the dependability and safety to the customer (West, 2012). Therefore, if the customer’s trust in the car seller is shaken, the car in case significantly reduces its value to the customer. In addition to this, the integrity is also affected. The customer is likely to not be able to rely on the use of the car that is purchased.

However, there are also other nonconformities of greater importance. Such nonconformities are represented by the refusal to repair the products under warranty. There are several situations where customers that purchased cars from different dealers observed that their cars stalled. This significantly affected their quality and use to the customers. In accordance with the requirements of the uniform commercial code, the dealer had to repair the nonconformities in case. There are several situations where the dealer or the producer refused to do so. The uniform commercial code states that if the dealer refuses to repair the nonconformities identified by the customer, the agreement can be revoked. However, the decision of the court depends on each situation in case. This mostly refers to the nonconformities identified by the customers, and the behavior of the producer. It is important to determine the influence of these nonconformities on the customer and on the producer.

Reference list:

1. Uniform Commercial Code Summary (2012). Autopedia. Retrieved November 19, 2012 from http://autopedia.com/html/HotLinks_LemonUCC.html.

2. Statute of Frauds (2012). West. Retrieved November 19, 2012 from http://www.west.net/~smith/frauds.htm.


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