Two Too Many: Third Party Beneficiaries of Warranties Under the Uniform Commercial Code

(Excerpt) This Article surveys and analyzes the current version of section 2-318 and suggests improvements so that section 2-318 produces more uniform and equitable results that better facilitate interstate commerce in today’s complex commercial environment. Part I discusses the historical genesis of section 2- 318, specifically the common law concept of privity and its progression to the current version of section 2-318. Part II expounds upon certain issues with section 2-318 as currently drafted, which include lack of uniformity and lack of remedy for a valid breach of warranty claim. Part III establishes how the courts have begun eroding the concept of privity in spite of the language of section 2-318, thus eliminating the need for alternatives.

Part IV proposes improvements to section 2-318 in accordance with current case law and public policy aimed at protecting consumers. Finally, Part V demonstrates that the states would adopt the proposed provision given today’s consumer-centric society.