Chapter 8 Trade

• Library: Time Limitations 2010

I. Trade and Commerce (Sections 400.2-702 - 419.060)

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                | Statuteor Rule | Action, Event,or Proceeding | TimeLimit | ComputedFrom |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | I. Trade and Commerce (Sections 400.2-702 - 419.060) |
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                | Uniform Commercial Code - Sales |
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                | 400.2- 702(2) | Demand to reclaim goods receiv-| Within 10 days after | Receipt of goods |
                | | ed by buyer on credit while bu-| | |
                | | yer insolvent | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: Limitation does not apply if misrepresentation of solvency in writing within |
                | 3 months before. |
                +------------------------------------------------------------------------------------------------------------------------------------+
                | 400.2- 725(1) | Commencement of action for bre-| Within 4 years after | Cause of action accrues |
                | | ach of contract for sale | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: This section governs limitation of action for breach of warranty for product- |
                | s purchased after 1965; § 516.120 governs for purchases before 1965. Kansas City v. W.R. Grace & |
                | Co., 778 S.W.2d 264 (Mo. App. W.D. 1989). By the original agreement, parties may reduce period of li- |
                | mitations to at least one year. Cause of action accrues when breach occurs, regardless of aggrieved |
                | party's lack of knowledge of breach. Section 400.2-725(2). Legislature has carved out of § 516.11 |
                | 0 a special statute of limitations relating to a contract for the sale of goods. Payne v. Far-Mar-Co- |
                | ., 612 S.W.2d 54, 55 (Mo. App. W.D. 1981). Only exception to 4-year limitation concerning warranties |
                | is for warranties explicitly extended to future performance. Clevenger & Wright Co. v. A.O. Smith H- |
                | arvestore Prods., Inc., 625 S.W.2d 906, 909 (Mo. App. W.D. 1981). If action, once commenced, is term- |
                | inated, 6 months to refile, except voluntary dismissal or failure or neglect to prosecute. Section 4 |
                | 00.2-725(3). Action for breach of warranty must be commenced within 4 years after cause accrues. Wil- |
                | bur Waggoner Equip. & Excavating Co.v.Clark Equip. Co., 668 S.W.2d 601, 602 (Mo. App. E.D. 1984), ho- |
                | lding further that cause accrues when the breach occurs, when tender of delivery made, except where |
                | warranty extends to future performance of the goods. Exception should be pleaded. See also Black Lea- |
                | f Prods. Co.v.Chemsico, Inc., 678 S.W.2d 827, 830 - 31 (Mo. App. E.D. 1984). Attempt to make repairs- |
                | , or actual repairs, do not toll statute. Grusv.Patton, 790 S.W.2d 936, 940 (Mo. App. E.D. 1990). |
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                | Uniform Commercial Code - Leases |
                +------------------------------------------------------------------------------------------------------------------------------------+
                | 400.2A- 307(4) | Taking leasehold interest free | After knowledge of lease or mo-| Lease contract becomes enforce- |
                | | of security interest created | re than 45 days after | able |
                | | by lessor to extent future adv-| | |
                | | ances made | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: Unless future advances made under commitment made without knowledge of lease |
                | and before end of 45-day period. |
                +------------------------------------------------------------------------------------------------------------------------------------+
                | 400.2A- 309(4) | Perfection of interest of less-| Before goods become fixtures o-| |
                | | or of fixtures by fixture fili-| r within 10 days thereafter | |
                | | ng | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: Perfected interest has priority over conflicting interest of encumbrancer or |
                | owner of the real estate, if lease is a purchase money lease, the conflicting interest arises befor- |
                | e goods become fixtures, and lessee has recorded interest or is in possession. |
                +------------------------------------------------------------------------------------------------------------------------------------+
                | 400.2A- 401(3) | Providing assurance of due per-| 30 days or less from | Receipt of demand |
                | | formance under lease contract | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: Within a reasonable time. If not, constitutes repudiation of lease contract. |
                +------------------------------------------------------------------------------------------------------------------------------------+
                | 400.2A- 406(2) | Modification of lease agreemen-| 30 days or less from | Receipt of notification of del- |
                | | t by lessee where lessor's dut-| | ay in delivery or nondelivery |
                | | y is partially discharged due | | |
                | | to commercial impracticability | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: Within a reasonable time. If not, lease contract lapses with respect to affe- |
                | cted deliveries. |
                +------------------------------------------------------------------------------------------------------------------------------------+
                | 400.2A- 506 | Commencement of action for def-| Within 4 years after | Cause of action accrues |
                | | ault under lease contract (inc-| | |
                | | luding warranty and indemnity | | |
                | | actions) | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: Parties by contract may reduce period to at least 1 year. Determination of w- |
                | hen action "accrues" contained in § 400.2A-506(2). Upon termination of action, if remedy availabl- |
                | e, other action to commence within 6 months of termination (unless voluntarily discontinued or dismi- |
                | ssed for failure or neglect to prosecute). Section 400.2A-506(3). |
                +------------------------------------------------------------------------------------------------------------------------------------+
                | 400.2A- 522(1) | Recovery by lessee of identifi-| Within 10 days after | Receipt of first installment o- |
                | | ed goods from lessor where les-| | f rent and security |
                | | sor becomes insolvent | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Uniform Commercial Code - Negotiable Instruments |
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                | 400.3- 118(a) | Commencement of action on note | Within 10 years after | Due date or accelerated due da- |
                | | payable at a definite time | | te |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: Where obligation is certificate of deposit with stated due date and no requi- |
                | rement to pay before that, 6-year period begins after due date with demand for payment. Section 400.- |
                | 3-118(e). |
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                | 400.3- 118(b) | Commencement of action on note | Within 6 years after | Demand |
                | | payable on demand | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: If no demand made, action is barred if no principal or interest paid for 10-- |
                | year continuous period. Other provisions for actions on certified check, teller's check, cashier's c- |
                | heck, traveler's check, § 400.3-118(d), or certificate of deposit, § 400.3-118(e). |
                +------------------------------------------------------------------------------------------------------------------------------------+
                | 400.3- 118(c) | Commencement of action on paym-| Within 3 years after or 10 yea-| Dishonor of draft Date of draf- |
                | | ent of unaccepted draft | rs after | t |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: Whichever period expires first. Other provisions for actions on certified ch- |
                | eck, teller's check, cashier's check, traveler's check, § 400.3-118(d). |
                +------------------------------------------------------------------------------------------------------------------------------------+
                | 400.3- 118(d) | Commencement of action on cert-| Within 3 years after | Demand to acceptor or issuer, |
                | | ified check, teller's check, c-| | as case may be |
                | | ashier's check, or traveler's | | |
                | | check | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | 400.3- 118(e) | Commencement of action on cert-| Within 6 years after | Demand |
                | | ificate of deposit | | |
                +--------------------------------+--------------------------------+--------------------------------+---------------------------------+
                | Comment: If instrument states due date with no requirement to pay before that,

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