UNIFORM COMMERCIAL CODE
Act 174 of 1962
440.2401 Passing of title; reservation for security; limited application of section; rejection; revesting.
Sec. 2401.
Each provision of this article with regard to the rights, obligations, and remedies of the seller, the buyer, purchasers, or other third parties applies irrespective of title to the goods except where the provisions refers to the title. In situations that are not covered by the other provisions of this article and matters concerning title become material, the following rules apply:
(a) Title to goods cannot pass under a contract for sale before their identification to the contract under section 2501, and unless otherwise explicitly agreed the buyer acquires by their identification a special property as limited by this act. Any retention or reservation by the seller of the title (property) in goods shipped or delivered to the buyer is limited in effect to a reservation of a security interest. Subject to these provisions and to the provisions of article 9, title to goods passes from the seller to the buyer in any manner and on any conditions explicitly agreed on by the parties.
(b) Unless otherwise explicitly agreed title passes to the buyer at the time and place at which the seller completes its performance with reference to the physical delivery of the goods, despite any reservation of a security interest and even if a document of title is to be delivered at a different time or place. In particular and despite any reservation of a security interest by the bill of lading, both of the following apply:
(i) Unless subparagraph (ii) applies, if the contract requires or authorizes the seller to send the goods to the buyer but does not require the seller to deliver them at destination, title passes to the buyer at the time and place of shipment.
(ii) If the contract requires delivery at destination, title passes on tender there.
(c) Unless otherwise explicitly agreed where delivery is to be made without moving the goods, 1 of the following applies:
(i) If the seller is to deliver a tangible document of title, title passes at the time when and the place where the seller delivers the document of title.
(ii) If the seller is to deliver an electronic document of title, title passes when the seller delivers the document.
(iii) If the goods are at the time of contracting already identified and no documents of title are to be delivered, title passes at the time and place of contracting.
(d) A rejection or other refusal by the buyer to receive or retain the goods, whether or not justified, or a justified revocation of acceptance revests title to the goods in the seller. Revesting of title under this subdivision occurs by operation of law and is not a "sale".
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 2012, Act 87, Eff. July 1, 2013
Notes of Decisions
Fisher Sand & Gravel Co. v. Neal a Sweebe, Inc., 81 U.C.C. Rep. Serv. 2d (West) 239 (Mich. 2013).
· cites it 2× “A “sale” consists in the passing of title from the seller to the buyer for a price [MCL 440.2401]. A “present sale” means a sale which is accomplished by the making of the contract.”
In Re Bencker, 122 B.R. 506 (Bankr. W.D. Mich. 1990).
· cites it 6× “Mich.Comp.Laws Ann. § 440.2401(2). The IRS and Polynesian argue that when CBS delivered the unit to the Debtors’ site, title passed.”
Ladd v. Ford Consum. Fin. Co., Inc., 550 N.W.2d 826 (Mich. Ct. App. 1996).
· cites it 5× “People v Lee, 447 Mich 552, 562 ; 526 NW2d 882 (1994) (citing MCL 440.2401[2]; MSA 19.2401 [2]). Accordingly, we must determine whether the general provisions of the UCC or the specific provisions of the mhca control the transfer of legal ownership.”
People v. Lee, 526 N.W.2d 882 (Mich. 1994).
· cites it 2× “This exchange created the sale because, under MCL 440.2401(2); MSA 19.2401(2), "[u]nless otherwise explicitly agreed title passes to the buyer at the time and place at which the seller completes his performance with reference to the physical delivery of the goods.”
Wolverine World Wide, Inc. v. Wolverine Canada, Inc., 653 F. Supp. 2d 747 (W.D. Mich. 2009).
· cites it 2× “2106(1) and MCL § 440.2401. Defendants’ other argument here, that the purchase orders sent to Wolverine constitute contracts for the sale of goods, is unpersuasive.”
World Book, Inc v. Dep't of Treasury, 590 N.W.2d 293 (Mich. 1999).
“MCL 440.2401(2); MSA 19.2401(2). 8 Two parties can form a present contract for the sale of an item to take place in the future in a different location.”
Messer v. Averill, 183 N.W.2d 802 (Mich. Ct. App. 1970).
· cites it 2× “The defendant asserts that the Uniform Commercial Code, MCLA § 440.2401(2) (Stat Ann 1964 Rev § 19.”
In re Dixon, 500 B.R. 869 (Bankr. E.D. Mich. 2013).
· cites it 5× “Mich. Comp. Laws Ann. § 440.2401 states, in pertinent part: (1) .”
— Mich. Comp. Laws § 440.2401(1) — 2 cases
— Mich. Comp. Laws § 440.2401(2) — 11 cases
In Re Bencker, 122 B.R. 506 (Bankr. W.D. Mich. 1990).
“Mich.Comp.Laws Ann. § 440.2401(2). The IRS and Polynesian argue that when CBS delivered the unit to the Debtors’ site, title passed.”
Ladd v. Ford Consum. Fin. Co., Inc., 550 N.W.2d 826 (Mich. Ct. App. 1996).
“People v Lee, 447 Mich 552, 562 ; 526 NW2d 882 (1994) (citing MCL 440.2401[2]; MSA 19.2401 [2]). Accordingly, we must determine whether the general provisions of the UCC or the specific provisions of the mhca control the transfer of legal ownership.”
People v. Lee, 526 N.W.2d 882 (Mich. 1994).
“This exchange created the sale because, under MCL 440.2401(2); MSA 19.2401(2), "[u]nless otherwise explicitly agreed title passes to the buyer at the time and place at which the seller completes his performance with reference to the physical delivery of the goods.”
World Book, Inc v. Dep't of Treasury, 590 N.W.2d 293 (Mich. 1999).
“MCL 440.2401(2); MSA 19.2401(2). 8 Two parties can form a present contract for the sale of an item to take place in the future in a different location.”
Messer v. Averill, 183 N.W.2d 802 (Mich. Ct. App. 1970).
“The defendant asserts that the Uniform Commercial Code, MCLA § 440.2401(2) (Stat Ann 1964 Rev § 19.”
— Mich. Comp. Laws § 440.2401(d) — 1 case
— Mich. Comp. Laws § 440.2401(l)(b) — 1 case
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