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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
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Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Under the Uniform Commercial Code (UCC), what is the time limitation

Resolved Question:

Under the Uniform Commercial Code (UCC), what is the time limitation for which concealed damages can be found and reported back to the supplier? Is it 60 days from the time of receipt?
Submitted: 4 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 4 years ago.
Under the UCC the concept of merchantability or hidden defects is based on a "reasonable time" for inspection and while a contract may specify a time (60 days) for example, the UCC does not. Under UCC 1-204(2), it states that "What is a reasonable time for taking any action depends on the nature, purpose and circumstances of such action." Furthermore, UCC 1-204(3) states, " An action is taken "seasonably" when it is taken at or within the time agreed or if no time is agreed at or within a reasonable time." Thus, you need to refer to your contract regarding the inspection period for defects and even if your contract sets the time limit, if you can prove that time limit is unreasonable, the court can still allow for return of the merchandise based on a hidden defect that existed at time of delivery.


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