"Preparing for the Big Changes to UCC Rules on
Contract Formation and Terms of the Deal!"

Alan Dickson, Esq. and Charles Rumbaugh, Esq.


Overview of Impact on buying/selling organizations/professionals:

            Nature/operation of UCC in private sector transactions.

            State-by-state adoption of UCC changes.

            U.S. Gov't contract implications:  commercial items; general source of guidance.

            Potential need for revisiting company contract terms / practices.

Applicability/Scope of UCC:

            Definition of “Goods”

            Sales v. Leases of Goods (Article 2A)

            Excluded items:  Services, information, etc.

            Applicability for mixed transactions, e.g. goods/information; goods/services, etc.

            UCC “As compared” to Convention on International Sales of Goods (CISG).

New Definitions / Relationship to Recent Electronic Commerce Statutory Changes:

            “Record” verses “writing”.

            “Electronic,” electronic agent,” and “electronic record”.


            Impacts / questions / issues.

Contract Formation and Terms of the Deal:   

            “Battle-of-the-Forms” coverage greatly changed.  Does it end the battle?

            The new §2-207—Scope of the deal!  Terms of the Deal!

            The new §2-204 and §2-206—Formation of the Contract.

            New “Statute of Frauds” threshold of $5,000.

            Absence of Shipping Terms in Revised Article:  Rationale / practical impact?

            UCC as “filling the gap” for contract interpretation.

            Course of Dealing, Course of Performance, and Usage of Trade.

Other aspects

            Impacts / examples / questions / issues.


            Implied warranties (quality/title) continue.

            “Remedial Promises”.

            “Pass-through Warranties”.

            Impacts / questions / issues.

Performance and Breach:

            Changes in areas of acceptance, rejection and revocation.



            Statute of Limitation changes.