Chapter 402

402.602   Manner and effect of rightful rejection.

402.603   Merchant buyer’s duties as to rightfully rejected goods.

402.604   Buyer’s options as to salvage of rightfully rejected goods.

402.605   Waiver of buyer’s objections by failure to particularize.

402.606   What constitutes acceptance of goods.

402.607   Effect of acceptance; notice of breach; burden of establishing breach after acceptance; notice of claim or litigation to person answerable over.

402.608   Revocation of acceptance in whole or in part.

402.609   Right to adequate assurance of performance.

402.610   Anticipatory repudiation.

402.611   Retraction of anticipatory repudiation.

402.612   “Installment contract”; breach.

402.613   Casualty to identified goods.

402.614   Substituted performance.

402.615   Excuse by failure of presupposed conditions.

402.616   Procedure on notice claiming excuse.

SUBCHAPTER VII

REMEDIES

402.701   Remedies for breach of collateral contracts not impaired.

402.702   Seller’s remedies on discovery of buyer’s insolvency.

402.703   Seller’s remedies in general.

402.704   Seller’s right to identify goods to the contract notwithstanding breach or to salvage unfinished goods.

402.705   Seller’s stoppage of delivery in transit or otherwise.

402.706   Seller’s resale including contract for resale.

402.707   “Person in the position of a seller”.

402.708   Seller’s damages for nonacceptance or repudiation.

402.709   Action for the price.

402.710   Seller’s incidental damages.

402.711   Buyer’s remedies in general; buyer’s security interest in rejected goods.

402.712   “Cover”; buyer’s procurement of substitute goods.

402.713   Buyer’s damages for nondelivery or repudiation.

402.714   Buyer’s damages for breach in regard to accepted goods.

402.715   Buyer’s incidental and consequential damages.

402.716   Buyer’s right to specific performance or replevin.

402.717   Deduction of damages from the price.

402.718   Liquidation or limitation of damages; deposits.

402.719   Contractual modification or limitation of remedy.

402.720   Effect of “cancellation” or “rescission” on claims for antecedent breach.

402.721   Remedies for fraud.

402.722   Who can sue 3rd parties for injury to goods.

402.723   Proof of market price: time and place.

402.724   Admissibility of market quotations.

402.725   Statute of limitations in contracts for sale.

Ch. 402 Cross-reference Cross-reference: See definitions in s. 401.201.

subch. I of ch. 402 SUBCHAPTER I

SHORT TITLE, GENERAL CONSTRUCTION
AND SUBJECT MATTER

402.101 402.101 Short title. This chapter shall be known and may be cited as uniform commercial code — sales.

402.102 402.102 Scope; certain security and other transactions excluded from this chapter. Unless the context otherwise requires, this chapter applies to transactions in goods; it does not apply to any transaction which although in the form of an unconditional contract to sell or present sale is intended to operate only as a security transaction nor does this chapter impair or repeal any statute regulating sales to consumers, farmers or other specified classes of buyers.

402.102 Annotation A consignment that involves a delivery of goods to a merchant who has been induced to accept them by an agreement from the consignor that permits their return in lieu of payment if they are not resold is a security consignment governed by ch. 409, as contrasted to a true consignment. Clark Oil & Refining Co. v. Liddicoat, 65 Wis. 2d 612, 223 N.W.2d 530 (1974).

402.102 Annotation A mixed contract for goods and services is subject to this chapter if the predominant factor is a transaction of sale, with labor incidentally involved. Van Sistine v. Tollard, 95 Wis. 2d 678, 291 N.W.2d 636 (Ct. App. 1980).

402.102 Annotation A contract for development of computer software is primarily a service contract and is not subject to the Uniform Commercial Code. Micro-Managers, Inc. v. Gregory, 147 Wis. 2d 500, 434 N.W.2d 97 (Ct. App. 1988).

402.102 Annotation This chapter does not just apply to a sale as that term is defined in s. 402.106 (6), but to the more general aspect of commerce: “transactions in goods.” The reach of Uniform Commercial Code (UCC) article 2, adopted as this chapter, goes considerably beyond the confines of the type of transaction that the UCC itself defines to be a sale, namely, the passing of title from a party called the seller to one denominated a buyer for a price. Estate of Kriefall v. Sizzler USA Franchise, Inc., 2011 WI App 101, 335 Wis. 2d 151, 801 N.W.2d 781, 09-1212.

402.102 Annotation Wisconsin applies the “predominant purpose” test to determine whether a mixed contract is subject to the Uniform Commercial Code. The predominant purpose test relies on both quantitative and subjective factors, including the language of the contract, the nature of the business of the supplier, the intrinsic worth of the materials, the circumstances of the parties, and the primary objective they hoped to achieve by entering into the contract. Ultimately, the court must consider both objective and subjective factors to determine whether, under the totality of the circumstances, the predominant purpose of the contract is for the sale of goods or services. Marquette University v. Kuali, Inc., 584 F. Supp. 3d 720 (2022).

402.103 402.103 Definitions and index of definitions.

402.103(1) (1) In this chapter unless the context otherwise requires:

402.103(1)(a) (a) “Buyer” means a person who buys or contracts to buy goods.

402.103(1)(b) (b) “Good faith” in the case of a merchant means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.

402.103(1)(c) (c) “Receipt” of goods means taking physical possession of them.

402.103(1)(d) (d) “Seller” means a person who sells or contracts to sell goods.

402.103(2) (2) Other definitions applying to this chapter or to specified sections thereof, and the sections in which they appear are:

402.103(2)(a) (a) “Acceptance” — s. 402.606.

402.103(2)(b) (b) “Banker’s credit” — s. 402.325.

402.103(2)(c) (c) “Between merchants” — s. 402.104.

402.103(2)(d) (d) “Cancellation” — s. 402.106 (1).

402.103(2)(e) (e) “Commercial unit” — s. 402.105.

402.103(2)(f) (f) “Confirmed credit” — s. 402.325.

402.103(2)(g) (g) “Conforming to contract” — s. 402.106.

402.103(2)(h) (h) “Contract for sale” — s. 402.106.

402.103(2)(i) (i) “Cover” — s. 402.712.

402.103(2)(j) (j) “Entrusting” — s. 402.403.

402.103(2)(k) (k) “Financing agency” — s. 402.104.

402.103(2)(L) (L) “Future goods” — s. 402.105.

402.103(2)(m) (m) “Goods” — s. 402.105.

402.103(2)(n) (n) “Identification” — s. 402.501.

402.103(2)(o) (o) “Installment contract” — s. 402.612.

402.103(2)(p) (p) “Letter of credit” — s. 402.325.

402.103(2)(q) (q) “Lot” — s. 402.105.

402.103(2)(r) (r) “Merchant” — s. 402.104.

402.103(2)(s) (s) “Overseas” — s. 402.323.

402.103(2)(t) (t) “Person in position of seller” — s. 402.707.

402.103(2)(u) (u) “Present sale” — s. 402.106.

402.103(2)(v) (v) “Sale” — s. 402.106.

402.103(2)(w) (w) “Sale on approval” — s. 402.326.

402.103(2)(x) (x) “Sale or return” — s. 402.326.

402.103(2)(y) (y) “Termination” — s. 402.106.

402.103(3) (3) The following definitions in other chapters apply to this chapter:

402.103(3)(a) (a) “Check” — s. 403.104.

402.103(3)(b) (b) “Consignee” — s. 407.102.

402.103(3)(c) (c) “Consignor” — s. 407.102.