Impact of Article 2B

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This is an unofficial draft of Article 2B from March 1998. For the current official version, see the University of Pennsylvania Law School (Official NCCUSL) site at http://www.law.upenn.edu/library/ulc/ulc.htm

SECTION 2B-604. SELF-COMPLETING PERFORMANCES. If performance involves delivery of information or services covered by this article thatwhich, because of their nature, provide the licensee substantially with their benefit value of the information or services or with other significant ubstantial commercial benefit on performance or delivery value and the benefit received value cannot be returned once delivery or performance is received by the licensee, the following rules apply:

(1) Sections 2B-607 through 2B-614 do not apply.

(2) The rights of the parties under regarding the issues in paragraph (1) are determined under Section 2B-601 and the ordinary standards practices of the applicable business, trade, or industry.

(3) Before payment, a party may inspect the media and label or packaging of a performance but may not view or receive the performance unless the agreement so provides otherwise.

Committee Action:

a. Reviewed without substantive changes

Reporter's Notes:

This section deals with a problem arising from the nature of the subject matter covered in this article. Some subject matter is, in effect, fully delivered when made available to or read by the transferee; theories of inspection, rejection and return as in Article 2 are not applicable. This is true, for example, in a pay per view arrangement for an entertainment event or other information. It is also the case where the subject matter of the contract involves informational content that, once seen, has in effect communicated its entire value. The parties are left to general, common law remedies as described in section 2B-601. If the delivered performance constitutes a material breach, the receiving party can obtain its money back or sue for damages, but it cannot demand full performance prior to payment as would be the case with anything other than the limited inspection right described in subsection (b).