Legal Question in Business Law in California

Re: UCC Codes v. State law re: service contracts

First, the Uniform Commercial Code really is state law. Each state enacts its own version of the supposedly "uniform" text, and versions from state to state do differ, although usually only very slightly.

Next, the UCC sections here in question deal with sales of goods. The UCC might also apply to mixed contracts for goods and services combined, if the goods-sale aspects were predominant. Finally, there are UCC sections (probably not applicable here) that deal with banking, negotiable instruments, etc.

The fact that the form used is a purchase order rather than a service agreement would probably make little or no difference; the court would look at the substance, not the form.

So, the applicable body of law would be the common law of the jurisdiction, here presumably California. California's common law of contracts is set forth in the decisions of its appellate and supreme courts. Some selected statutes may govern portions of a service contract as well, such as the statutes of limitations and frauds.

There is a tendency for the common law of contracts more and more to resemble the UCC provisions for contracts for the sale of goods. However, important differences still remain.

When a party files bankruptcy, collection efforts including lawsuits against the debtor must grind to a halt, due to the so-called "automatic stay."

Thereafter, claims must be pursued according to bankruptcy law and in the bankruptcy court.