Don't Bet the Business

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.