Patsy is shopping for a used car. She finds a car she likes at Morley Motors. Discuss how the UCC views each party and the standard of conduct it imposes on the parties in performing the sales transaction.

Question

What will be an ideal response?

Answer 1

The UCC imposes a duty of good faith in the performance of all contracts. The UCC frequently holds a merchant to a higher standard of conduct than a non-merchant. A merchant is someone who routinely deals in the particular goods involved, or who appears to have special knowledge or skill in those goods, or who uses agents with special knowledge or skill in those goods. Morley Motors is a merchant when it comes to selling autos because it routinely deals in cars. For a merchant, good faith means honesty in fact plus the exercise of reasonable commercial standards of fair dealing. Patsy is not a merchant in cars and would be held to a lower standard of conduct. For non-merchants, good faith means honesty in fact. Thus, when performing the sales contract, neither Patsy nor Morley Motors may lie or mislead the other party. Morley must also act as fairly as the business community routinely expects.