While certainly not a question of first impression, the Michigan Court of Appeals' ruling in McNeal v Blue Bird Corp, Case No 308763 (June 12, 2014) was, nonetheless, eye-opening.
In issuing its decision, the appellate court reminded everyone that while the Michigan Uniform Commercial Code (UCC) allows parties to a contract to adjust the statute of limitations as permitted in MCL 440.2725(1), any such change must be in a manner that is conspicuous to the buyer.
Indeed, attempts to limit the right to sue to a period less than that provided by §2725(1) must STAND OUT – just as limitations placed on the implied warranty of merchantability under MCL 440.2316(2) are required to be in a conspicuous writing.
This is not a new concept but certainly one worth revisiting if it has been a while since you reviewed your contract forms.
- Partner
Matthew J. Boettcher is a member of Plunkett Cooney's Board of Directors and serves as Leader of the firm's Commercial Litigation Practice Group. Mr. Boettcher, who practices in the Bloomfield Hills office, represents clients in ...
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