Ucc & Soga

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Business Law II
Title: Comparison of Uniform Commercial Code and Malaysia Sales of Goods Act 1957

Spring Semester, 2013
Submission date:
28th March, 2013

Michele Ch’ng Chiau Woon

Table of Contents
Uniform Commercial Code (UCC)4
Sale of Goods Act (1957)5
Comparison of Uniform Commercial Code and Sales of Goods Act 19576
Open Price Terms6
Implied Warranty: Fitness, Quality or Purpose7
Acceptance of Goods10
Consumer’s right on the examination/inspection of goods11

To provide a critique of the sections contained in Article 2 of the Uniform Commercial Code of United States and equivalent provisions contained in Sales of Goods Act 1957 of Malaysia. Examine, specifically on the contract/market differential provisions in both pieces of legislation. Sections used for comparison are (a) Open Price Terms; (b) Fitness and Purpose of Implied Warranty; (c) Acceptance of Goods and; (d) Consumer’s Rights on Examination or Inspection of Goods. Methods used are by searching through online journals, in class notes and also referring to law books.

As opposed to traditional commercial practice involving a simple sale between a buyer and a seller, today trades are rather complex as they cross legal, ideological and economic boundaries such as a capitalist and planned societies, developed and less developed countries, as well as civil and common law countries. English law plays an important role as the governing law of international commodities sales due to various reasons including certain historical factors. Especially Malaysia has once been colonized by the English. The comparative study between Uniform Commercial Code and the Sale of Goods Act 1957 is worth to be made. Uniform Commercial Code (UCC):

Uniform Commercial Code or UCC, is the statutory law in every state. The Uniform Commercial Code was created by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. All the states have adopted it except for Louisiana, which has adopted only part of the Code. The Uniform Commercial Code is a comprehensive code addressing most aspects of commercial law, is generally viewed as one of the most important developments in American law. The commissioners are all attorneys, qualified to practice law, including state and federal judges, legislators and law professors from throughout the United States and its territories. These quasi-public organizations meet and decide whether to endorse these drafts or to send them back to the experts for revision. The revision process may result in several different revisions of the original draft. Once a draft is endorsed, the Uniform Law Commissioners recommend that the states adopt these rules. The UCC is a model code, so it does not have legal effect in a jurisdiction unless UCC provisions are enacted by the individual legislatures as statutes. Currently, the UCC (in whole or in part) has been enacted, with some local variation, in all 50 states, the District of Columbia, and the Virgin Islands. The Article 2 of Uniform Commercial Code deals with the sales of goods.

Sale of Goods Act (1957):
The sale of goods is the most common type of commercial transaction. Sale of Goods Act 1957 was first enacted in 1957 and was then revised in 21st September 1989. The Sale of Goods Act 1957 is the main piece of legislation serving consumers in obtaining remedy when their acquisition ‘go wrong'. It is in the concern of every person who sells goods or services to appreciate the repercussion of the Act for them and the tasks they have with it. This shows how by law, all descriptions, as well as those that are oral, written, indirect or set in an illustration have got to be precise and not deceptive. Portraying merchandise wrongly means the buyer may have a claim against the seller for infringement of agreement, and may...
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