ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Wednesday, February 13, 2008

UCC Revised Article 1 Update

As of January 1, 2008, Revised UCC Article 1 was in effect in 28 states -- Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Oklahoma, Rhode Island, Texas, Utah, Virginia, and West Virginia.  Kansas's version of Revised Article 1, enacted last year, will take effect on July 1.  Of the 29 state enactments to date, 0 of 29 include the uniform Revised 1-301 choice of law provision -- each of the 29 enacting state legislatures having opted instead for some variation of its state's pre-revised 1-105 -- and only 20 of 29 include the uniform 1-201(b)(20) definition of "good faith" -- 9 state legislatures opting to retain the pre-revised "honesty in fact" definition in Article 1 and reserve "the observance of reasonable commercial standards of fair dealing" requirement for parties and transactions subject to that standard under another Article.

As of February 12, 2008, bills proposing to enact Revised Article 1 were pending in four states: Massachusetts, Pennsylvania, South Dakota, and Vermont.  Massachusetts HB 4302, which succeeds the previously unsuccessful HB 3731, is currently awaiting a third reading in the Massachusetts House.  Pennsylvania HB 1152, which was tabled last fall after passing the Pennsylvania House, was removed from the table today and awaits a third reading in the Pennsylvania Senate.  South Dakota SB 93 (apparently now with the blessing of the South Dakota Bar Associations Business Law Committee) unanimously passed the South Dakota Senate on January 29 and is now before the South Dakota House Judiciary Committee.  Vermont HB 563 passed the Vermont House on January 24 and is now before the Vermont Senate Economic Development, Housing & General Affairs Committee.  All four currently-pending bills reject the uniform Revised 1-301 choice of law provision (opting instead for some variation of pre-revised 1-105) and embrace the unitary good faith standard of uniform Revised 1-201(b)(20).

[Keith A. Rowley]

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