Nebraska Uniform Commercial Code 2A-216

UCC 2A-216

2A-216.

Third-party beneficiaries of express and implied warranties.

A warranty to or for the benefit of a lessee under this article, whether express or implied, extends to any natural person who is in the family or household of the lessee or who is a guest in the lessee's home if it is reasonable to expect that such person may use, consume, or be affected by the goods and who is injured in person by breach of the warranty. This section does not displace principles of law and equity that extend a warranty to or for the benefit of a lessee to other persons. The operation of this section may not be excluded, modified, or limited, but an exclusion, modification, or limitation of the warranty, including any with respect to rights and remedies, effective against the lessee is also effective against any beneficiary designated under this section.

Source

  • Laws 1991, LB 159, § 27.

Annotations

  • COMMENT

  • Uniform Statutory Source: Section 2-318.

  • Changes: The provisions of section 2-318 have been included in this section, modified in two respects: First, to reflect leasing practice, including the special practices of the lessor under a finance lease; second, to reflect and thus codify elements of the official comment to section 2-318 with respect to the effect of disclaimers and limitations of remedies against third parties.

  • Purposes:

  • The last sentence of this section does not preclude the lessor from excluding or modifying an express or implied warranty under a lease. Section 2A-214. Further, that sentence does not preclude the lessor from limiting the rights and remedies of the lessee and from liquidating damages. Sections 2A-503 and 2A-504. If the lease excludes or modifies warranties, limits remedies for breach, or liquidates damages with respect to the lessee, such provisions are enforceable against the beneficiaries designated under this section. However, this last sentence forbids selective discrimination against the beneficiaries designated under this section, i.e., exclusion of the lessor's liability to the beneficiaries with respect to warranties made by the lessor to the lessee.

  • Other law, including the Article on Sales (Article 2), may apply in determining the extent to which a warranty to or for the benefit of the lessor extends to the lessee and third parties. This is in part a function of whether the lessor has bought or leased the goods.

  • This article does not purport to change the development of the relationship of the common law, with respect to products liability, including strict liability in tort (as restated in Restatement (Second) of Torts, section 402A (1965)), to the provisions of the code. Compare Cline v. Prowler Indus. of Maryland, 418 A.2d 968 (Del. 1980) and Hawkins Constr. Co. v. Matthews Co., 190 Neb. 546, 209 N.W.2d 643 (1973) with Dippel v. Sciano, 37 Wis. 2d 443, 155 N.W.2d 55 (1967).

  • Cross References:

  • Article 2, especially section 2-318, and sections 2A-214, 2A-503, and 2A-504.

  • Definitional Cross References:

  • "Goods". Section 2A-103(1)(h).

  • "Lessee". Section 2A-103(1)(n).

  • "Person". Section 1-201(30).

  • "Remedy". Section 1-201(34).

  • "Rights". Section 1-201(36).