Business Law Chapter 19

Business Law Chapter 19 - Business Law Chapter 19...

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Unformatted text preview: Business Law Chapter 19 Introduction to Sales Development of Commercial Law- During 15 th and 16 th century England, the body of rules merchants relied on was called lex mercatoria or Law Merchant – rules and customs developed by traders throughout Europe from the 15 th to the 18 th century. o The law was “custom made” – relied on past customs and was created by the merchants for use by them. It focused on promises, the sale and exchange of goods, and payment. - Common law judges began to employ these laws more and more over the next 2 centuries. o Courts began to distinguish law for sales of goods from law governing - Through first half of 20 th century, commercial transactions changed dramatically as advances in transportation and communication revolutionized negotiation and trade. o However, the law was slow to develop in comparison to commerce – nation needed modernized business law to give nationwide UNIFORMITY and PREDICTABLITY in the newly developing fast world. - 1942, groups of scholars from American Law institute (ALI) and National Conference of Commissioners on Uniform State Laws (NCCUSL) were led by Professor Karl N. Llewellyn and in 1952 they published the Uniform Commercial Code (UCC) o Article 2 deals with Sale of Goods and Leases The Code Today- ALI and NCCUSL revised code in 1957 and 1970s again – and in the 1980s they began to completely revise it. o Goals were to acknowledge lessons learned from first half century with its implementation, accommodate for new technology, and serve business world. Finally the code was revised completely by 2003 o UCC is a creation of scholars – it has NO legal affect until a state legislature adopts it UCC Basics: Code’s Purpose- UCC purpose: UCC S.1-102(2) Underlying Purposes and Policies of this Act are o A. to simplify, clarify, and modernize law governing commercial transactions o B. to permit the continued expansion of commercial practices through custom, usage, and agreement of the parties o C. to make uniform the law among various jurisdictions - Part A of S.1-102(2) requires focus on needs of contemporary business people o ie: judge referring to UCC code in S.1-102(2) when handling a case of e-commerce and NOT relying on past decisions pertaining to commerce because the practice of commerce is so FAST.- Part C of S.1-102(2) urges uniformity which is a valuable goal in itself. o Ie: court judge looking to high court of other states for guidance in similar case of contract modification, this would establish uniformity in decision because court used reference point. - S.1-102(2) states “[t]his act shall be liberally construed and applied to promote its underlying purposes” when in doubt courts should focus on goals described in UCC S.1-102(2) – emphasis is on “getting the right results” NOT following rigid rules of contract law Scope of Article 2- You must know when to apply the UCC to cases because it changes the common law- UCC S2-102: Article 2 applies to the sale of goods...
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This note was uploaded on 06/29/2011 for the course MGT 3000 taught by Professor Murrmann during the Spring '11 term at Virginia Tech.

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Business Law Chapter 19 - Business Law Chapter 19...

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