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The Vermont Statutes Online
Title
09A
:
Uniform Commercial Code
Chapter
002
:
Sales
§
2-401. Passing of title; reservation for security; limited application of this
section
Each provision
of this article with regard to the rights, obligations, and remedies of the
seller, the buyer, purchasers, or other third parties applies irrespective of
title to the goods except where the provision refers to such title. Insofar as
situations are not covered by the other provisions of this article and matters
concerning title become material the following rules apply:
(1) Title to
goods cannot pass under a contract for sale prior to their identification to
the contract (§ 2-501), and unless otherwise explicitly agreed the buyer
acquires by their identification a special property as limited by this title.
Any retention or reservation by the seller of the title (property) in goods
shipped or delivered to the buyer is limited in effect to a reservation of a
security interest. Subject to these provisions and to the provisions of the
article on Secured Transactions (article 9), title to goods passes from the seller
to the buyer in any manner and on any conditions explicitly agreed on by the
parties.
(2) Unless
otherwise explicitly agreed title passes to the buyer at the time and place at
which the seller completes his performance with reference to the physical
delivery of the goods, despite any reservation of a security interest and even
though a document of title is to be delivered at a different time or place; and
in particular and despite any reservation of a security interest by the bill of
lading:
(a) if the
contract requires or authorizes the seller to send the goods to the buyer but
does not require him or her to deliver them at destination, title passes to the
buyer at the time and place of shipment; but
(b) if the
contract requires delivery at destination, title passes on tender there.
(3) Unless
otherwise explicitly agreed where delivery is to be made without moving the
goods:
(a) if the
seller is to deliver a tangible document of title, title passes at the time
when and the place where he or she delivers such documents and if the seller is
to deliver an electronic document of title, title passes when the seller
delivers the document; or
(b) if the goods
are at the time of contracting already identified and no documents of title are
to be delivered, title passes at the time and place of contracting.
(4) A rejection
or other refusal by the buyer to receive or retain the goods, whether or not
justified, or a justified revocation of acceptance revests title to the goods
in the seller. Such revesting occurs by operation of law and is not a
"sale." (Amended 2015, No. 51,
§ B.5, eff. June 3, 2015.)