M Civ JI 140.32 Contract Action - UCC: Resale by Seller - Public Sale

The seller resold the goods at a public sale. If you find that the buyer breached the contract, you must then determine whether the seller resold the goods in good faith and in a commercially reasonable manner and whether this resale was reasonably identified as referring to the broken contract.

Good faith means honesty in fact in the conduct or transaction. A public sale is conducted in a commercially reasonable manner if:

(a) The amount of goods sold, the time, place, terms, method, and manner of sale are all commercially reasonable.

(b) The sale is made at a usual place or market for public sale if one is reasonably available.

(c) *(Only existing, conforming goods are sold.)

(d) The seller gives the buyer reasonable notice of the time and place of the resale (unless you determine that the goods are perishable or threaten to decline in value speedily).

(e) [ The goods are within the view of those attending the sale / The notice of sale states the place where the goods are located and provides for reasonable inspection by prospective bidders ].

Note on Use

*Do not use subsection c if there is a recognized market for a public sale of futures in goods of the kind.

Comment

MCL 440.2706.

Uganski v Little Giant Crane and Shovel Inc, 35 Mich App 88; 192 NW2d 580 (1971) (sale by purchaser).

History

M Civ JI 140.32 was added January 1987.