Car Law from A to Z: U is for Uniform Commercial Code

The Uniform Commercial Code, commonly abbreviated as UCC, is a set of rules that applies to commercial transactions including sales and leases. The UCC provides useful rights and remedies relating to repossession, required language and disclosures in contracts, defenses against making payments on a defective item, warranties, liens, and many others.  Allow me to share a few nuggets from the UCC (feel free to use these to impress your friends and colleagues):

  • In EVERY contract the parties have a duty of good faith in performance and execution of the contract—this may allow recovery for a seller’s  UCCfailure to disclose known defects of a vehicle to a buyer
  • In the event of a breach of warranty claim a buyer has the option to cancel the sale and the seller’s refusal to cancel means the buyer has several remedies including selling the defective vehicle/item
  • The sale of a good does not automatically entitle the seller to repossess the good if the buyer breaches the sales agreement.  The good must be “secured” by the seller for repossession to be proper

Paperwork is key when understanding and applying certain portions of the UCC and the vast number of provisions, qualifications, and exceptions can make even the most experienced attorney’s head spin.  Do not try to figure this stuff out on your own; get professional help.  You could find some rights, remedies, or defenses in the writing (or lack thereof).




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