Commercial Law Commons^™

Employment At Will: The French Experience As A Basis For Reform, Madeleine M. Plasencia

Articles

Roughly one-quarter of the workers in the United States are represented by unions, leaving three-quarters subject to the vicissitudes of the employment-at-will doctrine.' At-will employees, as a general matter, lack protection against dismissal without cause.2 That is, an employer may dismiss an "at will" employee without notice, "for good reason, bad reason or no reason at all," so long as the proffered reasons for dismissal do not violate random whistle-blowing provisions or federal and state anti-discrimination statutes.' The mirror image of the employer's right to dismiss at will is the right of an employee who was hired to perform work …

Annual Survey Of Virginia Law: Commercial Law, Michael J. Herbert

University of Richmond Law Review

This survey of commercial law reviews all Virginia Supreme Court cases interpreting the Virginia Uniform Commercial Code (the "Code") and all statutory changes made to the Code in the 1988 session of the General Assembly. It also reviews significant Code cases decided in the various federal courts located in Virginia and in the Virginia circuit courts. It is current as of approximately May 1, 1988.

Article 29(2) Of The United Nations Convention On Contracts For The International Sale Of Goods: A New Effort At Clarifying The Legal Effect Of "No Oral Modification" Clauses, Robert A. Hillman

Cornell Law Faculty Publications

No abstract provided.

The Decline Of The Contract Market Damage Model, James J. White

Articles

In law school every American lawyer learns that the conventional measure of damages for breach of a sales contract is the difference between the contract price and the market price. Even before these rules were embodied in the Uniform Sales Act and the Uniform Commercial Code (UCC), they were a staple of Anglo-American common law. They remain the rules with which a court would determine damage liability not only for the sale of goods, but also for the sale of real estate and securities.

Preserving Purchase Money Security Interests And Allocating Payments, Lynda Kay Chandler

University of Michigan Journal of Law Reform

This Note explores the rationale underlying the courts' conflicting decisions in light of the purposes of the UCC. It concludes that the language of the UCC and its goals of uniformity and simplification require that a PMSI should not be entirely destroyed because a creditor also has a security interest in items the debtor acquired after the purchase money transaction or because a creditor extends additional credit. The best solution is to permit the creditor to retain a PMSI, to the extent of the purchase money loan, in those goods that the creditor's loan helped to purchase.

Part I is …

Annual Survey Of Virginia Law: Commercial Law, Michael J. Herbert

University of Richmond Law Review

It has been a fairly busy year for Commercial Law in Virginia courts, but not in the legislature. This may not last; there are already legislative efforts underway to extend the coverage of Virginia's Uniform Commercial Code (the "Code") to electronic fund transfers and personal property leasing. If those efforts are successful, the General Assembly will soon have on its hands the considerable task of evaluating the first major overhaul of the Code in a decade.

The Chaos Of The "Battle Of The Forms": Solutions, John E. Murray, Jr.

Vanderbilt Law Review

Whatever may be said of the lack of certainty, stability, and predictability in many areas of the law, chaos rarely is discovered. Unfortunately, we have now reached that point in matters involving attempts by innumerable buyers and sellers to make contracts through an exchange of printed forms. Because printed forms will continue to be the written evidence of the overwhelming majority of attempted contracts in America,' this chaos threatens the institution of contract in our society. There should be no doubt that"chaos" is an accurate characterization of the state of the law in the "battle of the forms" arena. Courts …

The Interaction Of Articles 6 And 9 Of The Uniform Commercial Code: A Study In Conveyancing,Priorities, And Code Interpretation, Steven L. Harris

Vanderbilt Law Review

By 1940, the National Conference of Commissioners on Uniform State Laws no longer was content to revise the then existing uniform acts that related to commercial transactions., Rather, the National Conference joined with the American Law Institute in an effort to promulgate proposed new legislation containing principles, policies, and definitions common to a number of separate aspects of mercantile commerce, including the sale and financing of goods and methods of payment. Like all human creations, the resulting product-the Uniform Commercial Codes--imperfectly achieved the goals of its sponsors. In particular, important questions have arisen about the proper interplay among various articles …

Dancing On The Edge Of Article 9, James J. White

Articles

Despite the fact that Article 9 is a much more comprehensive personal property security statute than was ever found in American law prior to its enactment, cases continue to present issues on the scope of the Article. Gone are the cases in which a court was called upon to determine whether a "conditional sales contract" could be dealt with under the "factor's lien" law; it is now clear that all such personal property security devices are governed by Article 9. Yet many problems remain for the unwary lawyer. I will identify several and deal in detail with three of these …

Timing Of Payments By Check Under Section 547 Of The Bankruptcy Code, Azita Gorton

Cardozo Law Review

No abstract provided.

Annual Survey Of Virginia Law: Commercial Law, Michael J. Herbert

University of Richmond Law Review

It has been a quiet year in the Commonwealth of Virginia, at least in the area of commercial law. There have been only a smattering of cases, for the most part routine, and slight amendments to Virginia's Uniform Commercial Code (the "Code"). The most significant commercial law development occurred neither in the General Assembly nor the courts, but at the Federal Trade Commission, which is again busying itself with the regulation of consumer credit.

Privity Revisited: Tort Recovery By A Commercial Buyer For A Defective Product's Self-Inflicted Damage, Mark A. Kaprelian

Michigan Law Review

This Note argues that if a seller and a commercial buyer are in privity, damage to a product resulting from its own defect should not be recoverable by a commercial buyer in a tort action. Part I shows how the conflict arises and examines the judicial boundaries that are normally drawn between tort and warranty liability. Part II contrasts the rationales for the warranty and tort remedies, with particular emphasis on the Uniform Commercial Code and Section 402A of the Restatement (Second) of Torts. Part III argues that if a seller and a commercial buyer are in privity and …

Cashier's Checks, Certified Checks, And True Cash Equivalence, Paul M. Shupack

Cardozo Law Review

No abstract provided.

Modernizing Kentucky's Uniform Commercial Code, Harold R. Weinberg, Louise Everett Graham, Thomas J. Stipanowich

Law Faculty Scholarly Articles

In 1958 Kentucky became the third state to enact the Uniform Commercial Code promulgated by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. The General Assembly stated that this legislation was intended to modernize, clarify and simplify the law of commercial transactions. Enactment of the Code also evidenced the legislature's intent to make Kentucky commercial law uniform with that of the other states. Subsequent General Assemblies further implemented these policies by enacting substantially all of the uniform amendments to the Code proposed by the ALI and NCCUSL through 1964.

Unfortunately, these enactments represent our …

Annual Survey Of Virginia Law: Commercial Law, Michael J. Herbert

University of Richmond Law Review

During its 1984 and 1985 sessions, the General Assembly enacted a number of minor technical amendments to Virginia's Uniform Commercial Code. These included both the much-needed and long-awaited change of the word "state" to "Commonwealth" throughout the Code and a series of inexplicable revisions in the Code's punctuation. The most significant of these technical changes was undoubtedly the increase in the filing fees for Article 9 financing statements filed with the State Corporation Commission. (One substantial legislative change which indirectly affects the Code was the enactment of Virginia's new "Lemon Law." Some aspects of that statute are discussed below in …

Corporations And Corporate Agents: Liability On Commercial Paper Contracts And Attainment Of Holder Status, Harold R. Weinberg

Law Faculty Scholarly Articles

This article focuses on two classes of commercial paper issues. Section I considers the Uniform Commercial Code rules relevant to determining whether a corporation or its agents are bound by contracts made upon a negotiable instrument. Application of these rules continues to be an important and recurrent source of legal disputes. Section II considers the rights of corporations or their agents to obtain holder status prerequisite to enforcing commercial paper contracts. Problems relating to the attainment of this status can result from corporate engagement in joint-enterprise with artificial or natural persons and from the linkage of corporations through common ownership …

The Warranty Of Merchantability And Computer Software Contracts: A Square Peg Won't Fit In A Round Hole, Edward G. Durney

Washington Law Review

Courts have consistently held that Article 2 of the Uniform Commercial Code (U.C.C.) governs transactions involving computer hardware. Treatment of computer software transactions has been less consistent. This Comment contends that computer software, an intangible, is not within the scope of Article 2. It further contends that the warranty of merchantability cannot meaningfully be applied by analogy in computer software contracts. Finally, this Comment concludes that existing tort and contract causes of action provide software users with sufficient protection.

Action Accrual Date For Written Warranties To Repair: Date Of Delivery Or Date Of Failure To Repair?, Carey A. Dewitt

University of Michigan Journal of Law Reform

This Note argues that the statute of limitations for an action for breach of a repair warranty should begin to run not when the goods are delivered (on-delivery rule), but when the manufacturer has failed to repair the goods (failure-to-repair rule). Part I considers the current division of authority relating to the action accrual date (the date at which the limitations period begins) for repair warranties. It analyzes the issue of whether the repair warranty is a species of future performance warranty under section 2-725(2) and examines non-Code law on repair promises. Part II discusses the advantages and disadvantages of …

Ucc And Me In Process, Ingrid Michelsen Hillinger

Faculty Publications

No abstract provided.

Evidentiary Problems In--And Solutions For--The Uniform Commercial Code, Ronald J. Allen, Robert A. Hillman

Cornell Law Faculty Publications

The Uniform Commercial Code does not offer a systematic approach to the rules governing the evidentiary relationships of parties to commercial litigation. In this article, Professors Allen and Hillman present a general analytical approach to proof rules, highlight the shortcomings of the Code's evidentiary provisions, and discuss the inevitable confusion in the case law construing the Code. They propose an amendment to the Code designed to clarify and improve the Code approach.

Pleading And Practice In Commercial Paper Cases: Burdens Of Proof, Harold R. Weinberg

Law Faculty Scholarly Articles

Money debts are frequently paid by checks and evidenced by notes subject to Article Three of the Uniform Commercial Code. Financial institutions and other creditors ordinarily take these instruments with the expectation that they will be paid on time without resort to litigation. This expectation fails when the debtor or some other obligor on the instrument claims that its signature was unauthorized or that there is a defense against payment. This Article analyzes the Uniform Commercial Code rules concerning burdens of proof that apply to these disputes and gives consideration to related procedural and evidentiary questions. It concludes with some …

Efficiency Justifications For Personal Property Security, James J. White

Articles

In February of 1983 Pan American World Airways issued 100 million dollars of convertible secured notes. As security for these notes it put up three Boeing 747 SP aircraft, two 747-100 aircraft, and one McDonnell Douglas DC10-30. The appraised value of these aircraft was 157 million dollars. To the extent possible under the law, Pan American made these aircraft subject to the claims of the owners of the new notes. On default, the note holders would have the first claim on these aircraft, would have the right to repossess them outside of bankruptcy, and would have the right to the …

Judicial Lien Priorities Under Article 9 Of The Uniform Commercial Code: Part I, David G. Carlson, Paul M. Shupack

Cardozo Law Review

No abstract provided.

Death And Subordination Under Article 9 Of The Uniform Commercial Code: Senior Buyers And Senior Lien Creditors, David G. Carlson

Cardozo Law Review

No abstract provided.

The Constitutionality Of Section 9-504(3) Of The Uniform Commercial Code: A Question Of State Action And Procedural Due Process, Abe Rappaport

Cardozo Law Review

No abstract provided.

Judicial Lien Priorities Under Article 9 Of The Uniform Commercial Code: Part Ii - Creditor Representatives, Bank Receivers, Fixtures, Crops, And Accessions, David G. Carlson, Paul M. Shupack

Cardozo Law Review

No abstract provided.

Sections 9-307(1) And 1-201(9) Of The Uniform Commercial Code: The Requirement Of Buying From A Person In The Business Of Selling Goods Of That Kind, Thomas W. Waldrep Jr.

Indiana Law Journal

No abstract provided.

Fixture Priorities, David G. Carlson

Cardozo Law Review

No abstract provided.

The Recent Erosion Of The Secured Creditor's Rights Through Cases, Rules And Statutory Changes In Bankruptcy Law, James J. White

Articles

One can view the law of creditors' rights as a series of cyclesin which alternatively the rights of the creditor and then those of the debtor are in ascendancy. Looking back through Americanlegislative history, one sees both the state legislatures and the Congress intervening on behalf of debtors in a variety of ways onmany occasions. An early example of such intervention was the enactment, particularly in the Midwest and West, of generous exemption laws that removed a variety of property beyond the reach of general creditors. A second example is the enactment of usury laws, which continue to be a …

The Efficacy Of Guaranty Contracts In Sophisticated Commercial Transactions, Peter A. Alces

Faculty Publications

Even though contracts of guaranty are not subject to uniform standards of interpretation throughout the states, both case law and statutory development have tended to evidence a strong sympathy for the guarantor. In spite of this trend, Professor Alces suggests that creditors' counsel can, through careful drafting, do much to assure the enforceability of the guaranty contract. A scrupulously structured guaranty contract, one that anticipates possible defenses to liability in explicit terms, may well be upheld, even in cases in which guarantors occupied weak negotiating positions vis-a-vis creditors. Moreover, the attack on the guaranty as a fraudulent conveyance under section …