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1.2.2 UCC Article 2

Article 2 of the Uniform Commercial Code has been enacted into law in every state except Louisiana. Appendix E, infra, reprints relevant UCC provisions with their official comments.

UCC Article 2 provides the basic framework for consumer warranty law. The Magnuson-Moss Warranty Act, state lemon laws, and other specific statutes may provide additional consumer protections, but the basic skeleton of warranty law is created by the UCC. The UCC determines when express and implied warranties are created, provides the initial regulation of disclaimers of implied warranties (which may be supplemented by other laws), and determines the initial rules concerning privity of contract. The UCC sets out requirements as to notice of breach of warranty, and when a warranty is breached.

Critically, the UCC establishes a consumer remedy whenever a warranty is not fully met, even if the breach is relatively minor and unintentional, and even if the seller is unaware of the product defect, acts in good faith, and is not at fault. The UCC provides the self-help remedies of canceling the contract or deducting the consumer’s damages from the outstanding balance. The UCC also regulates when the seller can contractually limit the buyer’s remedies and specifies damage remedies, which are available even if the consumer has also canceled the sale. Article 2 is not uniform among all states. Non-uniform provisions that are relevant to consumers are highlighted in this book.