reglab/statecodes huggingface dataset:
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-102 Scope; certain security and other transactions excluded from this article.

§490:2-102 Scope; certain security and other transactions excluded from this article.
(1) Unless the context otherwise requires, and except as provided in subsection (3), this article shall apply to transactions in goods and, in the case of a hybrid transaction, to the extent provided in subsection (2).
(2) In a hybrid transaction, if the sale-of-goods aspects:
(a) Do not predominate, only the provisions of this article that relate primarily to the sale-of-goods aspects of the transaction shall apply, and the provisions that relate primarily to the transaction as a whole shall not apply; and
(b) Predominate, this article shall apply to the transaction but shall not preclude application in appropriate circumstances of other law to aspects of the transaction that do not relate to the sale of goods.
(3) This article shall not:
(a) Apply to a transaction that, even though in the form of an unconditional contract to sell or present sale, operates only to create a security interest; or
(b) Impair or repeal any statute regulating sales to consumers, farmers, or other specified classes of buyers. [L 1965, c 208, §2-102; HRS §490:2-102; am L 2023, c 132, §6]
Case Notes
Uniform commercial code applies to distributorship agreements in Hawaii. 775 F. Supp. 1329.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-103 Definitions and index of definitions.

§490:2-103 Definitions and index of definitions.
(1) In this article unless the context otherwise requires:
(a) "Buyer" means a person who buys or contracts to buy goods.
(b) "Good faith" in the case of a merchant means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.
(c) "Receipt" of goods means taking physical possession of them.
(d) "Seller" means a person who sells or contracts to sell goods.
(2) Other definitions applying to this article or to specified parts thereof, and the sections in which they appear are:
"Acceptance". Section 490:2-606.
"Banker's credit". Section 490:2-325.
"Between merchants". Section 490:2-104.
"Cancellation". Section 490:2-106(4).
"Commercial unit". Section 490:2-105.
"Confirmed credit". Section 490:2-325.
"Conforming to contract". Section 490:2-106.
"Contract for sale". Section 490:2-106.
"Cover". Section 490:2-712.
"Entrusting". Section 490:2-403.
"Financing agency". Section 490:2-104.
"Future goods". Section 490:2-105.
"Goods". Section 490:2-105.
"Identification". Section 490:2-501.
"Installment contract". Section 490:2-612.
"Letter of credit". Section 490:2-325.
"Lot". Section 490:2-105.
"Merchant". Section 490:2-104.
"Overseas". Section 490:2-323.
"Person in position of seller". Section 490:2-707.
"Present sale". Section 490:2-106.
"Sale". Section 490:2-106.
"Sale on approval". Section 490:2-326.
"Sale or return". Section 490:2-326.
"Termination". Section 490:2-106.
(3) The following definitions in other articles apply to this article:
"Check". Section 490:3-104.
"Consignee". Section 490:7-102.
"Consignor". Section 490:7-102.
"Consumer goods". Section 490:9-102.
"Control". Section 490:7-106.
"Dishonor". Section 490:3-502.
"Draft". Section 490:3-104.
(4) In addition article 1 contains general definitions and principles of construction and interpretation applicable throughout this article. [L 1965, c 208, §2-103; HRS §490:2-103; am L 1997, c 32, §3; am L 2000, c 241, §11; am L 2004, c 163, §4]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-104 Definitions: "merchant"; "between merchants"; "financing agency".

§490:2-104 Definitions: "merchant"; "between merchants"; "financing agency".
(1) "Merchant" means a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction or to whom such knowledge or skill may be attributed by his employment of an agent or broker or other intermediary who by his occupation holds himself out as having such knowledge or skill.
(2) "Financing agency" means a bank, finance company, or other person who in the ordinary course of business makes advances against goods or documents of title or who by arrangement with either the seller or the buyer intervenes in ordinary course to make or collect payment due or claimed under the contract for sale, as by purchasing or paying the seller's draft or making advances against it or by merely taking it for collection whether or not documents of title accompany or are associated with the draft. "Financing agency" includes also a bank or other person who similarly intervenes between persons who are in the position of seller and buyer in respect to the goods (section 490:2-707).
(3) "Between merchants" means in any transaction with respect to which both parties are chargeable with the knowledge or skill of merchants. [L 1965, c 208, §2-104; HRS §490:2-104; am L 2004, c 163, §5]
Case Notes
Restaurant in business for two years was a merchant. 691 F. Supp. 247.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-105 Definitions: transferability; "goods"; "future" goods; "lot"; "commercial unit".

§490:2-105 Definitions: transferability; "goods"; "future" goods; "lot"; "commercial unit".
(1) "Goods" means all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the money in which the price is to be paid, investment securities (article 8) and things in action. "Goods" also includes the unborn young of animals and growing crops and other identified things attached to realty as described in the section on goods to be severed from realty (section 490:2-107).
(2) Goods must be both existing and identified before any interest in them can pass. Goods which are not both existing and identified are "future" goods. A purported present sale of future goods or of any interest therein operates as a contract to sell.
(3) There may be a sale of a part interest in existing identified goods.
(4) An undivided share in an identified bulk of fungible goods is sufficiently identified to be sold although the quantity of the bulk is not determined. Any agreed proportion of such a bulk or any quantity thereof agreed upon by number, weight or other measure may to the extent of the seller's interest in the bulk be sold to the buyer who then becomes an owner in common.
(5) "Lot" means a parcel or a single article which is the subject matter of a separate sale or delivery, whether or not it is sufficient to perform the contract.
(6) "Commercial unit" means such a unit of goods as by commercial usage is a single whole for purposes of sale and division of which materially impairs its character or value on the market or in use. A commercial unit may be a single article (as a machine) or a set of articles (as a suite of furniture or an assortment of sizes) or a quantity (as a bale, gross, or carload) or any other unit treated in use or in the relevant market as a single whole. [L 1965, c 208, §2-105; HRS §490:2-105]
Case Notes
Permanently affixed lanai tile not a "good" within the meaning of the Hawaii Uniform Commercial Code. 841 F. Supp. 986.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-106 Definitions: "contract"; "agreement"; "contract for sale"; "sale"; "present sale"; "conforming" to contract; "termination"; "cancellation"; "hybrid transaction".

§490:2-106 Definitions: "contract"; "agreement"; "contract for sale"; "sale"; "present sale"; "conforming" to contract; "termination"; "cancellation"; "hybrid transaction".
(1) In this article unless the context otherwise requires "contract" and "agreement" are limited to those relating to the present or future sale of goods. "Contract for sale" includes both a present sale of goods and a contract to sell goods at a future time. A "sale" consists in the passing of title from the seller to the buyer for a price (section 490:2-401). A "present sale" means a sale that is accomplished by the making of the contract.
(2) Goods or conduct including any part of a performance are "conforming" or conform to the contract when they are in accordance with the obligations under the contract.
(3) "Termination" occurs when either party pursuant to a power created by agreement or law puts an end to the contract otherwise than for its breach. On "termination" all obligations which are still executory on both sides are discharged but any right based on prior breach or performance survives.
(4) "Cancellation" occurs when either party puts an end to the contract for breach by the other and its effect is the same as that of "termination" except that the cancelling party also retains any remedy for breach of the whole contract or any unperformed balance.
(5) "Hybrid transaction" means a single transaction involving the sale of goods and:
(a) The provision of services;
(b) The lease of other goods; or
(c) The sale, lease, or license of property other than goods. [L 1965, c 208, §2-106; HRS §490:2-106; am L 2023, c 132, §7]
Case Notes
There was no evidence of a relevant "sale" of lanai tile to time-share owner. 841 F. Supp. 986.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-107 Goods to be severed from realty: recording.

§490:2-107 Goods to be severed from realty: recording.
(1) A contract for the sale of minerals or the like (including oil and gas) or a structure or its materials to be removed from realty is a contract for the sale of goods within this article if they are to be severed by the seller but until severance a purported present sale thereof which is not effective as a transfer of an interest in land is effective only as a contract to sell.
(2) A contract for the sale apart from the land of growing crops or other things attached to realty and capable of severance without material harm thereto but not described in subsection (1) or of timber to be cut is a contract for the sale of goods within this article whether the subject matter is to be severed by the buyer or by the seller even though it forms part of the realty at the time of contracting, and the parties can by identification effect a present sale before severance.
(3) The provisions of this section are subject to any third party rights provided by the law relating to realty records, and the contract for sale may be executed and recorded as a document transferring an interest in land and shall then constitute notice to third parties of the buyer's rights under the contract for sale. [L 1965, c 208, §2-107; HRS §490:2-107; am L 1978, c 155, §1(4)]
Case Notes
Cited: 841 F. Supp. 986.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-201 Formal requirements; statute of frauds.

§490:2-201 Formal requirements; statute of frauds.
(1) Except as otherwise provided in this section, a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is a record sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by the party's authorized agent or broker. A record shall not be deemed insufficient because it omits or incorrectly states a term agreed upon but the contract shall not be enforceable under this subsection beyond the quantity of goods shown in the record.
(2) Between merchants if within a reasonable time a record in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it shall satisfy the requirements of subsection (1) against the party unless notice in a record of objection to its contents is given within ten days after it is received.
(3) A contract that does not satisfy the requirements of subsection (1) but that is valid in other respects shall be enforceable:
(a) If the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller's business and the seller, before notice of repudiation is received and under circumstances that reasonably indicate that the goods are for the buyer, has made either a substantial beginning of their manufacture or commitments for their procurement;
(b) If the party against whom enforcement is sought admits in the party's pleading, testimony, or otherwise in court that a contract for sale was made, but the contract shall not be enforceable under this paragraph beyond the quantity of goods admitted; or
(c) With respect to goods for which payment has been made and accepted or that have been received and accepted (section 490:2-606). [L 1965, c 208, §2-201; HRS §490:2-201; am L 2023, c 132, §8]
Case Notes
Defendant's motion to dismiss based on statute of frauds denied. 691 F. Supp. 247.
Validation of contract by receipt and acceptance of goods. 2 H. App. 253, 630 P.2d 638.
Subsection (3)'s specially manufactured goods exception applied to orally modified contract if seller and remaining goods described in orally modified contract satisfied the five requirements specified in subsection (3)(a). 10 H. App. 368, 874 P.2d 1100.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-202 Final expression: parol or extrinsic evidence.

§490:2-202 Final expression: parol or extrinsic evidence.
Terms with respect to which the confirmatory memoranda of the parties agree or that are otherwise set forth in a record intended by the parties as a final expression of their agreement with respect to such terms as are included therein may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement but may be explained or supplemented by:
(a) Course of performance, course of dealing, or usage of trade (section 490:1-303); and
(b) Evidence of consistent additional terms unless the court finds the record to have been intended also as a complete and exclusive statement of the terms of the agreement. [L 1965, c 208, §2-202; HRS §490:2-202; am L 2004, c 162, §5; am L 2023, c 132, §9]
Case Notes
Where written contract is ambiguous as to amount of payment due on delivery, it is proper for court to hear extrinsic evidence to determine intent. 577 F.2d 568.
Mentioned with respect to finality of a written agreement entered into by an association of owners of a condominium. 2 H. App. 285, 630 P.2d 652.
Written lease could be supplemented by oral option to buy. 4 H. App. 1, 658 P.2d 343.
Lease intended to be complete and parol evidence regarding intent excluded. 4 H. App. 341, 666 P.2d 622.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-203 Seals inoperative.

§490:2-203 Seals inoperative.
The affixing of a seal to a record evidencing a contract for sale or an offer to buy or sell goods does not constitute the record a sealed instrument and the law with respect to sealed instruments does not apply to such a contract or offer. [L 1965, c 208, §2-203; HRS §490:2-203; am L 2023, c 132, §64]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-204 Formation in general.

§490:2-204 Formation in general.
(1) A contract for sale of goods may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of such a contract.
(2) An agreement sufficient to constitute a contract for sale may be found even though the moment of its making is undetermined.
(3) Even though one or more terms are left open a contract for sales does not fail for indefiniteness if the parties have intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy. [L 1965, c 208, §2-204; HRS §490:2-204]
Case Notes
Agreement established by conduct. 2 H. App. 253, 630 P.2d 638.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-205 Firm offers.

§490:2-205 Firm offers.
An offer by a merchant to buy or sell goods in a signed record which by its terms gives assurance that it will be held open is not revocable, for lack of consideration, during the time stated or if no time is stated for a reasonable time, but in no event may such period of irrevocability exceed three months; but any such term of assurance on a form supplied by the offeree must be separately signed by the offeror. [L 1965, c 208, §2-205; HRS §490:2-205; am L 2023, c 132, §64]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-206 Offer and acceptance in formation of contract.

§490:2-206 Offer and acceptance in formation of contract.
(1) Unless otherwise unambiguously indicated by the language or circumstances:
(a) An offer to make a contract shall be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances;
(b) An order or other offer to buy goods for prompt or current shipment shall be construed as inviting acceptance either by a prompt promise to ship or by the prompt or current shipment of conforming or nonconforming goods, but such a shipment of nonconforming goods does not constitute an acceptance if the seller seasonably notifies the buyer that the shipment is offered only as an accommodation to the buyer.
(2) Where the beginning of a requested performance is a reasonable mode of acceptance an offeror who is not notified of acceptance within a reasonable time may treat the offer as having lapsed before acceptance. [L 1965, c 208, §2-206; HRS §490:2-206]
Case Notes
Use of "purchase order" is effective acceptance. 56 H. 466, 540 P.2d 978.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-207 Additional terms in acceptance or confirmation.

§490:2-207 Additional terms in acceptance or confirmation.
(1) A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms.
(2) The additional terms are to be construed as proposals for addition to the contract. Between merchants such terms become part of the contract unless:
(a) The offer expressly limits acceptance to the terms of the offer;
(b) They materially alter it; or
(c) Notification of objection to them has already been given or is given within a reasonable time after notice of them is received.
(3) Conduct by both parties which recognizes the existence of a contract is sufficient to establish a contract for sale although the writings of the parties do not otherwise establish a contract. In such case the terms of the particular contract consist of those terms on which the writings of the parties agree, together with any supplementary terms incorporated under any other provisions of this chapter. [L 1965, c 208, §2-207; HRS §490:2-207]
Case Notes
Definite acceptance is counteroffer only as to additional terms. 56 H. 466, 540 P.2d 978.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-209 Modification, rescission, and waiver.

§490:2-209 Modification, rescission, and waiver.
(1) An agreement modifying a contract within this article needs no consideration to be binding.
(2) A signed agreement that excludes modification or rescission except by a signed writing or other signed record shall not be otherwise modified or rescinded, but except as between merchants this type of requirement on a form supplied by the merchant shall be separately signed by the other party.
(3) The requirements of the statute of frauds section of this article (section 490:2-201) must be satisfied if the contract as modified is within its provisions.
(4) Although an attempt at modification or rescission does not satisfy the requirements of subsection (2) or (3) it can operate as a waiver.
(5) A party who has made a waiver affecting an executory portion of the contract may retract the waiver by reasonable notification received by the other party that strict performance will be required of any term waived, unless the retraction would be unjust in view of a material change of position in reliance on the waiver. [L 1965, c 208, §2-209; HRS §490:2-209; am L 2023, c 132, §10]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-210 Delegation of performance; assignment of rights.

§490:2-210 Delegation of performance; assignment of rights.
(1) A party may perform the party's duty through a delegate unless otherwise agreed or unless the other party has a substantial interest in having the other party's original promisor perform or control the acts required by the contract. No delegation of performance relieves the party delegating of any duty to perform or any liability for breach.
(2) Except as otherwise provided in section 490:9-406, unless otherwise agreed, all rights of either seller or buyer can be assigned except where the assignment would materially change the duty of the other party, or increase materially the burden or risk imposed on the other party by the other party's contract, or impair materially the other party's chance of obtaining return performance. A right to damages for breach of the whole contract or a right arising out of the assignor's due performance of the assignor's entire obligation can be assigned despite agreement otherwise.
(3) The creation, attachment, perfection, or enforcement of a security interest in the seller's interest under a contract is not a transfer that materially changes the duty of or increases materially the burden or risk imposed on the buyer or impairs materially the buyer's chance of obtaining return performance within the purview of subsection (2) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the seller. Even in that event, the creation, attachment, perfection, and enforcement of the security interest remain effective, but:
(a) The seller is liable to the buyer for damages caused by the delegation to the extent that the damages could not reasonably be prevented by the buyer; and
(b) A court having jurisdiction may grant other appropriate relief, including cancellation of the contract for sale or an injunction against enforcement of the security interest or consummation of the enforcement.
(4) Unless the circumstances indicate the contrary a prohibition of assignment of "the contract" is to be construed as barring only the delegation to the assignee of the assignor's performance.
(5) An assignment of "the contract" or of "all my rights under the contract" or an assignment in similar general terms is an assignment of rights and unless the language or the circumstances (as in an assignment for security) indicate the contrary, it is a delegation of performance of the duties of the assignor and its acceptance by the assignee constitutes a promise by the assignee to perform those duties. This promise is enforceable by either the assignor or the other party to the original contract.
(6) The other party may treat any assignment which delegates performance as creating reasonable grounds for insecurity and may without prejudice to the other party's rights against the assignor demand assurances from the assignee (section 490:2-609). [L 1965, c 208, §2-210; HRS §490:2-210; am L 2000, c 241, §12 and gen ch 2000]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-301 General obligation of parties.

Law Journals and Reviews
Products Liability in Hawaii. 14 HBJ 127.
§490:2-301 General obligation of parties.
The obligation of the seller is to transfer and deliver and that of the buyer is to accept and pay in accordance with the contract. [L 1965, c 208, §2-301; HRS §490:2-301]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-302 Unconscionable contract or clause.

§490:2-302 Unconscionable contract or clause.
(1) If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time it was made the court may refuse to enforce the contract, or it may enforce the remainder of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.
(2) When it is claimed or appears to the court that the contract or any clause thereof may be unconscionable the parties shall be afforded a reasonable opportunity to present evidence as to its commercial setting, purpose and effect to aid the court in making the determination. [L 1965, c 208, §2-302; HRS §490:2-302]
Law Journals and Reviews
A "Traditional" and "Behavioral" Law-and-Economics Analysis of Williams v. Walker-Thomas Furniture Company. 26 UH L. Rev. 441.
Case Notes
Discussed, where arbitration agreement was not procedurally or substantively unconscionable. 381 F. Supp. 2d 1274.
When unconscionability is issue, hearing is mandatory, but need not be separate hearing. 56 H. 466, 540 P.2d 978.
This section is solely applicable to commercial transactions concerning the sale of goods; as case did not involve a commercial transaction relating to the sale of goods, this section was inapplicable to the rescission of a release in a personal injury action; thus, trial court did not err in declining to apply this section in its determination whether the release was unconscionable. 111 H. 413, 142 P.3d 277.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-303 Allocation or division of risks.

§490:2-303 Allocation or division of risks.
Where this article allocates a risk or a burden as between the parties "unless otherwise agreed", the agreement may not only shift the allocation but may also divide the risk or burden. [L 1965, c 208, §2-303; HRS §490:2-303]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-304 Price payable in money, goods, realty or otherwise.

§490:2-304 Price payable in money, goods, realty or otherwise.
(1) The price can be made payable in money or otherwise. If it is payable in whole or in part in goods each party is a seller of the goods which he is to transfer.
(2) Even though all or part of the price is payable in an interest in realty the transfer of the goods and the seller's obligations with reference to them are subject to this article, but not the transfer of the interest in realty or the transferor's obligations in connection therewith. [L 1965, c 208, §2-304; HRS §490:2-304]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-305 Open price term.

§490:2-305 Open price term.
(1) The parties if they so intend can conclude a contract for sale even though the price is not settled. In such a case the price is a reasonable price at the time for delivery if:
(a) Nothing is said as to price; or
(b) The price is left to be agreed by the parties and they fail to agree; or
(c) The price is to be fixed in terms of some agreed market or other standard as set or recorded by a third person or agency and it is not so set or recorded.
(2) A price to be fixed by the seller or by the buyer means a price for him to fix in good faith.
(3) When a price left to be fixed otherwise than by agreement of the parties fails to be fixed through fault of one party the other may at his option treat the contract as cancelled or himself fix a reasonable price.
(4) Where, however, the parties intend not to be bound unless the price be fixed or agreed and it is not fixed or agreed there is no contract. In such a case the buyer must return any goods already received or if unable so to do must pay their reasonable value at the time of delivery and the seller must return any portion of the price paid on account. [L 1965, c 208, §2-305; HRS §490:2-305]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-306 Output, requirements and exclusive dealings.

§490:2-306 Output, requirements and exclusive dealings.
(1) A term which measures the quantity by the output of the seller or the requirements of the buyer means such actual output or requirements as may occur in good faith, except that no quantity unreasonably disproportionate to any stated estimate or in the absence of a stated estimate to any normal or otherwise comparable prior output or requirements may be tendered or demanded.
(2) A lawful agreement by either the seller or the buyer for exclusive dealing in the kind of goods concerned imposes unless otherwise agreed an obligation by the seller to use best efforts to supply the goods and by the buyer to use best efforts to promote their sale. [L 1965, c 208, §2-306; HRS §490:2-306]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-307 Delivery in single lot or several lots.

§490:2-307 Delivery in single lot or several lots.
Unless otherwise agreed all goods called for by a contract for sale must be tendered in a single delivery and payment is due only on such tender but where the circumstances give either party the right to make or demand delivery in lots the price if it can be apportioned may be demanded for each lot. [L 1965, c 208, §2-307; HRS §490:2-307]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-308 Absence of specified place for delivery.

§490:2-308
Absence of specified place for delivery. Unless otherwise agreed:
(a) The place for delivery of goods is the seller's place of business or if he has none his residence; but
(b) In a contract for sale of identified goods which to the knowledge of the parties at the time of contracting are in some other place, that place is the place for their delivery; and
(c) Documents of title may be delivered through customary banking channels. [L 1965, c 208, §2-308; HRS §490:2-308]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-309 Absence of specific time provisions; notice of termination.

§490:2-309 Absence of specific time provisions; notice of termination.
(1) The time for shipment or delivery or any other action under a contract if not provided in this article or agreed upon shall be a reasonable time.
(2) Where the contract provides for successive performances but is indefinite in duration it is valid for a reasonable time but unless otherwise agreed may be terminated at any time by either party.
(3) Termination of a contract by one party except on the happening of an agreed event requires that reasonable notification be received by the other party and an agreement dispensing with notification is invalid if its operation would be unconscionable. [L 1965, c 208, §2-309; HRS §490:2-309]
Case Notes
Distributorship agreement did not require good cause for non-renewal. 775 F. Supp. 1329.
Subsection (1) cited as requiring delivery within a reasonable time. 60 H. 12, 586 P.2d 1024.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-310 Open time for payment or running of credit; authority to ship under reservation.

§490:2-310
Open time for payment or running of credit; authority to ship under reservation.
Unless otherwise agreed:
(a) Payment is due at the time and place at which the buyer is to receive the goods even though the place of shipment is the place of delivery;
(b) If the seller is authorized to send the goods the seller may ship them under reservation, and may tender the documents of title, but the buyer may inspect the goods after their arrival before payment is due unless such inspection is inconsistent with the terms of the contract (section 490:2-513);
(c) If delivery is authorized and made by way of documents of title otherwise than by [paragraph] (b), then payment is due regardless of where the goods are to be received:
[(i)] At the time and place at which the buyer is to receive delivery of the tangible documents; or
[(ii)] At the time the buyer is to receive delivery of the electronic documents and at the seller's place of business or if none, the seller's residence; and
(d) Where the seller is required or authorized to ship the goods on credit, the credit period runs from the time of shipment but postdating the invoice or delaying its dispatch will correspondingly delay the starting of the credit period. [L 1965, c 208, §2-310; HRS §490:2-310; am L 2004, c 163, §6; gen ch 2004]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-311 Options and cooperation respecting performance.

§490:2-311 Options and cooperation respecting performance.
(1) An agreement for sale which is otherwise sufficiently definite (subsection (3) of section 490:2-204) to be a contract is not made invalid by the fact that it leaves particulars of performance to be specified by one of the parties. Any such specification must be made in good faith and within limits set by commercial reasonableness.
(2) Unless otherwise agreed specifications relating to assortment of the goods are at the buyer's option and except as otherwise provided in subsections (1)(c) and (3) of section 490:2-319 specifications or arrangements relating to shipment are at the seller's option.
(3) Where such specification would materially affect the other party's performance but is not seasonably made or where one party's cooperation is necessary to the agreed performance of the other but is not seasonably forthcoming, the other party in addition to all other remedies:
(a) Is excused for any resulting delay in his own performance; and
(b) May also either proceed to perform in any reasonable manner or after the time for a material part of his own performance treat the failure to specify or to cooperate as a breach by failure to deliver or accept the goods. [L 1965, c 208, §2-311; HRS §490:2-311]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-312 Warranty of title and against infringement; buyer's obligation against infringement.

§490:2-312
Warranty of title and against infringement; buyer's obligation against infringement. (1) Subject to subsection (2) there is in a contract for sale a warranty by the seller that:
(a) The title conveyed shall be good, and its transfer rightful; and
(b) The goods shall be delivered free from any security interest or other lien or encumbrance of which the buyer at the time of contracting has no knowledge.
(2) A warranty under subsection (1) will be excluded or modified only by specific language or by circumstances which give the buyer reason to know that the person selling does not claim title in himself or that he is purporting to sell only such right or title as he or a third person may have.
(3) Unless otherwise agreed a seller who is a merchant regularly dealing in goods of the kind warrants that the goods shall be delivered free of the rightful claim of any third person by way of infringement or the like but a buyer who furnishes specifications to the seller must hold the seller harmless against any such claim which arises out of compliance with the specifications. [L 1965, c 208, §2-312; HRS §490:2-312]
Case Notes
Subsection (2) cited with respect to sale of a motor vehicle. 2 H. App. 308, 631 P.2d 594.
Seller without title to vehicle not precluded from being a "seller". 4 H. App. 265, 664 P.2d 755.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-313.1, 313.2 REPEALED.

§ §490:2-313.1, 313.2 REPEALED.
L 1992, c 314, § §2, 3.
Cross References
Motor vehicle express warranty enforcement (lemon law), see chapter 481I.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-315 Implied warranty: fitness for particular purpose.

§490:2-315 Implied warranty: fitness for particular purpose.
Where the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select or furnish suitable goods, there is unless excluded or modified under the next section an implied warranty that the goods shall be fit for such purpose. [L 1965, c 208, §2-315; HRS §490:2-315]
Law Journals and Reviews
Tort and Insurance "Reform" in a Common Law Court. 14 UH L. Rev. 55.
Case Notes
A genuine issue of material fact existed as to whether plaintiff relied on defendant's expertise in supplying a suitable product. 971 F. Supp. 2d 1017 (2013).
Considering the physical appearance of the disclaimer, the sophistication of the parties, and the circumstances of the negotiation and signing, the court declined to find that defendant disclaimed the implied warranty of fitness. 971 F. Supp. 2d 1017 (2013).
Where product is defective, even when seller does not detect defect, seller is liable under implied warranty of fitness for particular purpose. 66 H. 237, 659 P.2d 734.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-316 Exclusion or modification of warranties.

§490:2-316 Exclusion or modification of warranties.
(1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit warranty shall be construed wherever reasonable as consistent with each other; but subject to the provisions of this article on parol or extrinsic evidence (section 490:2-202) negation or limitation is inoperative to the extent that such construction is unreasonable.
(2) Subject to subsection (3), to exclude or modify the implied warranty of merchantability or any part of it the language must mention merchantability and in case of a writing must be conspicuous, and to exclude or modify any implied warranty of fitness the exclusion must be by a writing and conspicuous. Language to exclude all implied warranties of fitness is sufficient if it states, for example, that "There are no warranties which extend beyond the description on the face hereof".
(3) Notwithstanding subsection (2):
(a) Unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like "as is", "with all faults" or other language which in common understanding calls the buyer's attention to the exclusion of warranties and makes plain that there is no implied warranty;
(b) When the buyer before entering into the contract has examined the goods or the sample or model as fully as he desired or has refused to examine the goods there is no implied warranty with regard to defects which an examination ought in the circumstances to have revealed to him; and
(c) An implied warranty can also be excluded or modified by course of dealing or course of performance or usage of trade.
(4) Remedies for breach of warranty can be limited in accordance with the provisions of this article on liquidation or limitation of damages and on contractual modification of remedy (sections 490:2-718 and 490:2-719). [L 1965, c 208, §2-316; HRS §490:2-316]
Case Notes
Considering the physical appearance of the disclaimer, the sophistication of the parties, and the circumstances of the negotiation and signing, the court declined to find that defendant disclaimed the implied warranty of fitness. 971 F. Supp. 2d 1017 (2013).
Cited: 56 H. 466, 540 P.2d 978.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-317 Cumulation and conflict of warranties express or implied.

§490:2-317 Cumulation and conflict of warranties express or implied.
Warranties whether express or implied shall be construed as consistent with each other and as cumulative, but if such construction is unreasonable the intention of the parties shall determine which warranty is dominant. In ascertaining that intention the following rules apply:
(a) Exact or technical specifications displace an inconsistent sample or model or general language of description.
(b) A sample from an existing bulk displaces inconsistent general language of description.
(c) Express warranties displace inconsistent implied warranties other than an implied warranty of fitness for a particular purpose. [L 1965, c 208, §2-317; HRS §490:2-317]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-318 Third party beneficiaries of warranties express or implied.

§490:2-318 Third party beneficiaries of warranties express or implied.
A seller's warranty whether express or implied extends to any person who may reasonably be expected to use, consume or be affected by the goods and who is injured by breach of the warranty. A seller may not exclude or limit the operation of this section with respect to injury to the person of an individual to whom the warranty extends. L 1965, c 208, §2-318; HRS §490:2-318; am L 1969, c 101, §1
Case Notes
Plaintiff's claims for breach of express and implied warranties against pesticide manufacturer under Hawaii law were not preempted by Federal Insecticide, Fungicide, and Rodenticide Act, as based on labeling requirements, since those claims were derived solely from manufacturer, the warrantor, and were not imposed by state law. 153 F. Supp. 3d 1270 (2015).
Although plaintiff's pacemaker did not malfunction, it was in a defective and therefore unmerchantable condition sufficient to support action for breach of implied warranty of merchantability. 74 H. 1, 837 P.2d 1273.
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-319 F.O.B. and F.A.S. terms.

§490:2-319 F.O.B. and F.A.S. terms.
(1) Unless otherwise agreed the term F.O.B. (which means "free on board") at a named place, even though used only in connection with the stated price, is a delivery term under which:
(a) When the term is F.O.B. the place of shipment, the seller must at that place ship the goods in the manner provided in this article (section 490:2-504) and bear the expense and risk of putting them into the possession of the carrier; or
(b) When the term is F.O.B. the place of destination, the seller must at his own expense and risk transport the goods to that place and there tender delivery of them in the manner provided in this article (section 490:2-503);
(c) When under either (a) or (b) the term is also F.O.B. vessel, car or other vehicle, the seller must in addition at his own expense and risk load the goods on board. If the term is F.O.B. vessel the buyer must name the vessel and in an appropriate case the seller must comply with the provisions of this article on the form of bill of lading (section 490:2-323).
(2) Unless otherwise agreed the term F.A.S. vessel (which means "free alongside") at a named port, even though used only in connection with the stated price, is a delivery term under which the seller must:
(a) At his own expense and risk deliver the goods alongside the vessel in the manner usual in that port or on a dock designated and provided by the buyer; and
(b) Obtain and tender a receipt for the goods in exchange for which the carrier is under a duty to issue a bill of lading.
(3) Unless otherwise agreed in any case falling within subsection (1)(a) or (c) or subsection (2) the buyer must seasonably give any needed instructions for making delivery, including when the term is F.A.S. or F.O.B. the loading berth of the vessel and in an appropriate case its name and sailing date. The seller may treat the failure of needed instructions as a failure of cooperation under this article (section 490:2-311). He may also at his option move the goods in any reasonable manner preparatory to delivery or shipment.
(4) Under the term F.O.B. vessel or F.A.S. unless otherwise agreed the buyer must make payment against tender of the required documents and the seller may not tender nor the buyer demand delivery of the goods in substitution for the documents. [L 1965, c 208, §2-319; HRS §490:2-319]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-320 C.I.F. and C. & F. terms.

§490:2-320 C.I.F. and C. & F. terms.
(1) The term C.I.F. means that the price includes in a lump sum the cost of the goods and the insurance and freight to the named destination. The term C. & F. or C.F. means that the price so includes cost and freight to the named destination.
(2) Unless otherwise agreed and even though used only in connection with the stated price and destination, the term C.I.F. destination or its equivalent requires the seller at his own expense and risk to:
(a) Put the goods into the possession of a carrier at the port for shipment and obtain a negotiable bill or bills of lading covering the entire transportation to the named destination; and
(b) Load the goods and obtain a receipt from the carrier (which may be contained in the bill of lading) showing that the freight has been paid or provided for; and
(c) Obtain a policy or certificate of insurance, including any war risk insurance, of a kind and on terms then current at the port of shipment in the usual amount, in the currency of the contract, shown to cover the same goods covered by the bill of lading and providing for payment of loss to the order of the buyer or for the account of whom it may concern; but the seller may add to the price the amount of the premium for any such war risk insurance; and
(d) Prepare an invoice of the goods and procure any other documents required to effect shipment or to comply with the contract; and
(e) Forward and tender with commercial promptness all the documents in due form and with any indorsement necessary to perfect the buyer's rights.
(3) Unless otherwise agreed the term C. & F. or its equivalent has the same effect and imposes upon the seller the same obligations and risks as a C.I.F. term except the obligation as to insurance.
(4) Under the term C.I.F. or C. & F. unless otherwise agreed the buyer must make payment against tender of the required documents and the seller may not tender nor the buyer demand delivery of the goods in substitution for the documents. [L 1965, c 208, §2-320; HRS §490:2-320]
2023 Hawaii Revised Statutes › Title 27. Uniform Commercial Code › 490. Uniform Commercial Code › 490:2-321 C.I.F. or C. & F.: "net landed weights"; "payment on arrival"; warranty of condition on arrival.

§490:2-321 C.I.F. or C. & F.: "net landed weights"; "payment on arrival"; warranty of condition on arrival.
Under a contract containing a term C.I.F. or C. & F.
(1) Where the price is based on or is to be adjusted according to "net landed weights", "delivered weights", "out turn" quantity or quality or the like, unless otherwise agreed the seller must reasonably estimate the price. The payment due on tender of the documents called for by the contract is the amount so estimated, but after final adjustment of the price a settlement must be made with commercial promptness.
(2) An agreement described in subsection (1) or any warranty of quality or condition of the goods on arrival places upon the seller the risk of ordinary deterioration, shrinkage and the like in transportation but has no effect on the place or time of identification to the contract for sale or delivery or on the passing of the risk of loss.
(3) Unless otherwise agreed where the contract provides for payment on or after arrival of the goods the seller must before payment allow such preliminary inspection as is feasible; but if the goods are lost delivery of the documents and payment are due when the goods should have arrived. [L 1965, c 208, §2-321; HRS §490:2-321]