Thursday, March 30, 2006

Nebraska adopts new UCC Article 1 but retains old UCC dual good faith standards for merchants and non-merchantsContractsProf Blog
Governor Dave Heineman signed LB 570 in April 2005, which, by its terms, will take effect on January 1, 2006. LB 570, like the nine versions of Revised Article 1 already enacted in Alabama, Arkansas, Delaware, Hawaii, Idaho, Minnesota, New Mexico, Texas, and Virginia, rejects uniform R1-301, retaining the basic choice-of-law regime of pre-revised 1-105. LB 570, like the versions of Revised Article 1 enacted in four other states (Alabama, Hawaii, Idaho, and Virginia), rejects uniform R1-201(b)(20)'s definition of "good faith" as "honesty in fact and the observance of reasonable commercial standards of fair dealing," retaining the definitions set forth in pre-revised 1-201(19) (Neb. 1-201(19))and unamended (Neb.)2-103(1)(b) and 2A-103(3).

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