Those of us in Purchasing, and selling, need to keep The Uniform Commercial Code (UCC) in the forefront of our conscious mind because both the private and public purchasing professions tend to ignore this body of law. Each reader must know by now that every time goods are bought or sold, the UCC is the applicable law. Contract law, common law, or case law is not used to determine the rights and duties of the parties to an agreement for buying or selling things (goods).

  If you haven’t done so already, find a copy of your state statutes and look up “Uniform Commercial Code” in the index, then glance through the appropriate section of the codes. Note that a goods agreement will be valid even if only “quantity” is specified. All other terms and conditions can be inferred or inserted by law.

  This is totally contrary to the requirements for services, real property, construction, and other similar type agreements. In these latter types, all terms and conditions must be explicitly included in the written document or the agreement will not be enforceable by the courts. And the UCC recognizes that warranties are part of the inducement for making a purchase and will enforce these services as well. One of the leading experts on the UCC is Gaylord A. Jentz of the University of Texas. He so aptly states the UCC is the buyer’s bill of rights. Yet buyers tend to ignore the UCC because they don’t understand the importance of its contents.

  Too many buyers and suppliers rely on luck and bluff for remedying contract disputes even though the UCC offers a detailed road-map for solving problems with agreements for goods.

© 1997 by Donald L. Woods, All Rights Reserved