ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Thursday, February 1, 2007

UCC Article 2 & 2A Legislative Update

As of January 31, 2007, only three state legislatures (Kansas, Nevada, and Oklahoma) have considered bills proposing to enact the 2003 amendments to UCC Articles 2 and 2A.  None of the bills were enacted.

During the 2005 legislative session, the Kansas bill was tabled for further study and the Nevada bill died in committee.

During the 2006 legislative session, each house of Oklahoma's legislature passed a version of a bill to enact the Article 2A amendments.  However, the conference committee was unable to reconcile the two versions and the bill died in conference.  Meanwhile, a separate bill proposing to enact the Article 2 amendments died in committee.

Oklahoma 2172, proposing adoption of the 2003 amendments to UCC Articles 2 & 2A (along with certain conforming amendments to other articles), is scheduled to be introduced on February 5, 2007.

This is not to say that none of the content of the 2003 amendments has found its way into any state's law.  In 2005, Oklahoma amended Sections 2-105 and 2A-103 of its Commercial Code to add that the definition of "goods" for purposes of Articles 2 and 2A, respectively, "does not include information," see 12A Okla. Stat. Ann. §§ 2-105(1) & 2A-103(1)(h) (West Supp. 2007), and amended its Section 2-106 to add that "contract for sale" for purposes of Article 2 "does not include a license of information," see id. § 2-106(1).  The net effect is similar to having enacted Amended §§ 2-103(k) & 2A-103(1)(n), both of which exclude information from the meaning of "goods" for purposes of Article 2 and 2A, respectively.

[Keith A. Rowley]

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