The Uniform Commercial Code (UCC) Essay

The law governing the selling of goods and other commercial laws in the United States is governed by the Uniform Commercial Code (UCC), which is a collection of uniform state laws. The UCC is used in business transactions and has been accepted by the majority of US states.

The statute of limitations, the express guarantee, the disclaimer of warranties, and the limitations of remedies are the important factors in this case that need to be looked at.

The statue of limitations establishes the time frame within which a lawsuit may be filed. The UCC specifies a four-year statue of limitations. The case must be taken to court within a span of four years.

The case must be taken to court within a span of four years.

The Express Warranty

Warranty is portrayed in two forms, express and implied. The express warranty is to be found in the trade journal that claims that the injection packer is for permanent use. The additional advertising and literature sent to Brown from Lynes also claims the same. The express warranty can further be found in the tele-conversation between Brown and Spencer. Brown claims that Spencer gave him an assurance that they were of permanent use. Spencer, however, argues it to be just an opinion.

The trial court holds that an express warranty exists. This is in conjunction with the provisions of the UCC in the sense that the description given for the injection parkers is part of the bargain for the transaction to proceed. The trial court holds that there is a breach of express warranty.

The appellate court also agrees that the trial court did not err in holding that an express warranty exists. However, it seeks to examine whether the disclaimer of warranties on the invoices is sufficient.

Disclaimer of Warranties

These are the clauses found in transactional documents that attempt to relieve the seller from liability if a product does not match what is set out in the warranty. According to the UCC, once express warranties are made, they can rarely be disclaimed. The exception for disclaiming is that if the language that created the warranty was oral.

Lyne attempts to reduce their liability by adding a disclaimer on the invoices of the sale of the injection parkers. The appellate court holds that nothing in the facts of the case demonstrated the disclaimers to be unconscionable. The language used in the invoices should, therefore, be admitted into evidence and examined further.

Limitation of Remedies

This clause seeks to reduce the liability of the seller. The purpose of the provision is to prevent oppression or unfair surprise to the seller. The invoices that are issued as the injection parkers are being delivered purports to limit the seller’s liability. The trial court finds the language on the invoices unconscionable, and an attempt to alter the contract entered into previously.

UCC allows for the seller to limit buyer’s remedies to return the goods, receive repayment for non-conforming goods unless such limitation is unconscionable. UCC fails to define unconscionable, but in the Wille v. Southwestern Bell Telephone Co. case, the factors of unconscionability were defined by the court (Brown, 2016)

It is important to determine the time at which the contract of sale is created. The invoices are taken to be the acceptance or written confirmation. The oral agreements between Brown and Spencer cannot constitute a contract. According to UCC, a written expression of acceptance within a reasonable time constitutes the acceptance of the sales contract. Brown agrees to the limitation of remedies by appending his signature on one of the invoices. The limitation of remedies in the invoices should, therefore, be included in this case.

Conclusion

From the facts presented in this case, it is evident that there is a breach of expressed warranty on the part of the seller. We must also establish that the case is presented within the applicable statute of limitation. The limitation of remedies has also been found to apply and will be admitted for this case. The award of damages to Transamerica should, therefore, be weighed according to the limitation of remedies presented.

References

Abbott, K., Pendlebury, N., & Wardman, K. (2013). Business law. Andover: Cengage Learning.

Allison, J., & Prentice, R. (2009). Business law. Austin, Tex.: University Co-Op.

Brown, G. (2016). Business law with UCC applications. New York: McGraw-Hill Education.

Grubb, A., & Howells, G. (2007).The law of product liability. London: Butterworths.

Sherrow, V., & Marzilli, A. (2010).Product liability. New York, NY: Chelsea House Publishers.