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Article 2. Exclusions from the Convention: Types of Transactions

TEXT OF ARTICLE 2

This Convention does not apply to sales:

(a) of goods bought for personal, family or household use, unless the seller, at any time before or at the conclusion of the contract, neither knew nor ought to have known that the goods were bought for any such use;

(b) by auction;

(c) on execution or otherwise by authority of law;

(d) of stocks, shares, investment securities, negotiable instruments or money;

(e) of ships, vessels, hovercraft or aircraft;

(f) of electricity.


OUTLINE OF ISSUES

Reproduced with permission of UNCITRAL

2A Purchases for personal, family or household use (art. 2(a))

2A1 Exception: seller's lack of knowledge of buyer's purpose

2A2 Burden of proof

2B Sales by auction (art. 2(b))

2C Sales on execution or otherwise by authority of law (art. 2(c))

2C1 Exception: Resales by a party to contract in case of breach

2D Shares, securities, money paper, money (art. 2(d))

2E Ships, vessels, hovercraft, aircraft (art. 2(e))

2F Electricity (art. 2(f))

2G Other issues concerning exclusion


DESCRIPTORS

Scope of Convention ; Aircraft ; Auction sales ; Consumer sales ; Electricity ; Execution sales ; Ships or vessels ; Stocks, shares, money, investment securities


CASE ANNOTATIONS: UNCITRAL DIGEST CASES PLUS ADDED CASES

UNCITRAL has identified relevant cases in Digests containing case annotations for each article of the CISG. UNCITRAL cites eleven cases in its Digest of Art. 2 case law:

Austria      1           Netherlands      1           Switzerland         2
Germany 2 Russian Federation      3 Yugoslavia        1
Hungary       1       TOTAL:   11

Presented below is a composite list of Art. 2 cases reporting UNCITRAL Digest cases and other Art. 2 cases. All cases are listed in chronological sequence, commencing with the most recent. Asterisks identify the UNCITRAL Digest cases, commencing with the 31 October 2001 citation reported below. Cases are coded to the UNCITRAL Thesaurus.

English texts and full-text English translations of cases are provided as indicated. In most instances researchers can also access UNCITRAL abstracts and link to Unilex abstracts and full-text original-language case texts sourced from Internet websites and other data, including commentaries by scholars to the extent available.
 

United States 29 May 2009 Federal District Court [New York] (Doolim Corp. v. R Doll LLC et al.)

Netherlands 17 February 2009 Gerechtshof [Appellate Court] 's-Gravenhage (U.S. party v. Restauratiebedrijf B.V.)

Germany 14 January 2009 Oberlandesgericht [Appellate Court] München
 

Switzerland 16 December 2008 Bundesgerichtshof [Supreme Court] (Laser microjet case) [translation available]

Netherlands 3 December 2008 Rechtsbank [District Court] Haarlem (6ty Foods B.V. v. Hendriks Pluimveeverwerking N.V.)

Netherlands 5 November 2008 Rechtsbank [District Court] Arnhem (Baufix Holz- und Bauetechnik GmbH v. Eurovite Nederland)

Germany 12 June 2008 Landgericht [District Court] Landshut (Metalic slabs case) [translation available]

Netherlands 2 April 2008 Rechtbank [District Court] Middleburg (Sailing yacht case) 2E

Germany 31 March 2008 Oberlandesgericht [Appellate Court] Stuttgart (Automobile case) 2A1 [translation available]

Spain 17 January 2008 Supreme Court (Used automobiles case) [translation available]
 

Denmark 19 October 2007 Rettin i Københaven [District Court] (Pony case)
 

Germany 23 October 2006 Landgericht [District Court] Bamberg (Plants case) [translation available]

Netherlands 12 September 2006 Gerechtshof [Appellate Court] Arnhem 2E

United States 23 August 2006 Federal District Court [New York] (TeeVee Tunes v. Gerhard Schubert GmbH)

Germany 29 June 2006 Landgericht [District Court] Gera (Laser system case) [translation available]

Netherlands 28 June 2006 Rechtbank [District Court] Arnhem (Silicon Biomedical Instruments B.V. v. Erich Jaeger GmbH) [translation available]

Germany 3 April 2006 Oberlandesgericht [Appellate Court] Köln (Strawberry plants case) [translation available]

Netherlands 1 March 2006 Rechtbank [District Court] Arnhem (Skoda Kovarny v. B. van Dijk Jr. Staalhandelmaatschappij B.V.) [translation available]

Austria 23 January 2006 Oberlandesgericht [Appellate Court] Linz (Auto case) 2A [translation available]
 

Netherlands 15 December 2005 Rechtbank [District Court] Haarlem (Motorbike case)

Finland 14 October 2005 Korkein oikeus [Supreme Court] (Log house case) 2A

Netherlands 31 August 2005 Gerechtshof [Appellate Court] Leeuwarden (Auto-Moto Styl S.R.O. v. Pedro Boat B.V.) 2E [translation available]

Switzerland 16 August 2005 Kantonsgericht [District Court] Obwalden (Horse case)

Germany 3 August 2005 Landgericht [District Court] Neubrandenburg (Pitted sour cherries case) [translation available]

Germany 13 April 2005 Landgericht [District Court] Bamberg (Furnishings case) 2A [translation available]
 

Switzerland 3 November 2004 Tribunal Cantonal [Appellate Court] Jura [translation available]

Germany 27 July 2004 Landgericht [District Court] Kiel (Fat for frying case) [translation available]

Germany 20 July 2004 Oberlandesgericht [Appellate Court] Karlsruhe 2B

France 30 June 2004 Cour de Cassation [Supreme Court] [translation available]

Germany 1 June 2004 Landgericht [District Court] Saarbrücken (Pallets case) [translation available]
 

Switzerland 11 September 2003 Obergericht [Appellate Court] Thurgau (Marble slab case)

Austria 10 September 2003 Oberster Gerichtsthof [Supreme Court] 2A

Spain 7 June 2003 Audiencia Provincial [Appellate Court] Valencia [translation available]

Netherlands 25 February 2003 Gerchtshof [Appellate Court] 's-Hertogenbosch

Belgium 15 January 2003 Rechtbank [District Court] van Koophandel [for commercial matters] Veurne
 

Austria 18 December 2002 Oberster Gerichtshof [Supreme Court] 2A

Switzerland 2 December 2002 Tribunal Cantonal [Appellate Court] Valais [translation available]

Germany 25 November 2002 Oberlandesgericht [Appellate Court] Saarbrücken [translation available]

Germany 29 October 2002 Oberlandesgericht [Appellate Court] Schleswig-Holstein (Stallion case) [translation available]

Germany 2 October 2002 Bundesgerichtshof [Federal Supreme Court] 2B

United States 25 July 2002 Federal Bankruptcy Court [Georgia] (In re Ayers Aviation Holdings, Inc.) 2E

Germany 2 July 2002 Landgericht [District Court] Saarbrücken [translation available]

Switzerland 11 April 2002 Tribunal Cantonal [Appellate Court] Vaud (Clothes case) [translation available]

Germany 20 February 2002 Landgericht [District Court] München [translation available]

Germany 9 January 2002 Bundesgerichtshof [Federal Supreme Court] 2A2 [translation available]
 

Germany 12 November 2001 Oberlandesgericht [Appellate Court] Hamm (Memory module case) [translation available]

* Germany 31 October 2001 Bundesgerichtshof [Federal Supreme Court] 2A1 [translation available]

France 2 October 2001 Cour de Cassation [Supreme Court] [translation available]

Spain 15 June 2001 Audiencia Provincial [Appellate Court] Baleares 2E [translation available]

France 12 June 2001 Cour d’appel [Appellate Court] Colmar [translation available]

New Zealand 2 April 2001 Court of Appeal (Integrity Cars v. NZ Customs Service) 2B
 

Switzerland 11 December 2000 Bundesgericht [Federal Supreme Court] [translation available]

Germany 4 December 2000 Oberlandesgericht [Provincial Court of Appeals] Köln 2D

China 2000 CIETAC Arbitration Award [CISG 2000/17] (Souvenir coins case) 2D [translation available]
 

Canada 31 August 1999 Ontario Superior Court of Justice (La San Giuseppe v. Forti Moulding Ltd)

ICC August 1999 International Court of Arbitration, Case 9887 [English text]

* Serbia 15 April 1999 Yugoslav Chamber of Economy Arbitration award T-23/97 2E [translation available]
 

* Russia 18 December 1998 Maritime Commission Arbitration award 2E [translation available]

ICC December 1998 International Court of Arbitration, Case 8908 [English text]

Switzerland 9 October 1998 Cour de Justice [Appellate Court] Genève 2D [translation available]

Belgium 7 April 1998 Hof van Beroep [Appellate Court] Antwerp (LPG installation case) 2A [translation available]

* Russia 6 April 1998 Arbitration award 236/1997 2E [translation available]

Russia 5 March 1998 Arbitration award 8/1997

Russia 12 January 1998 Arbitration award 152/1996 [translation available]
 

Austria 21 October 1997 Landesgericht [District Court] Leoben

* Russia 2 September 1997 Arbitration award 255/1996 2E [translation available]

Netherlands 17 July 1997 Arrondissementsrechtbank [District Court] Arnhem 2B

* Austria 11 February 1997 Oberster Gerichtshof [Supreme Court] (Automobile case) 2A [translation available]
 

Austria 9 December 1996 Bezirksgericht [District Court] Wels

* Switzerland 5 June 1996 Kantonsgericht [District Court] Nidwalden 2A

* Switzerland 31 May 1996 Arbitration ZHK 273/1995 [Zürich Chamber of Commerce] [English text]

* Austria 6 February 1996 Oberster Gerichtshof [Supreme Court] (Propane case) [translation available]
 

Germany 16 November 1995 Landgericht [District Court] Köln

* Germany 11 October 1995 Landgericht [District Court] Düsseldorf 2A [translation available]

Germany 12 May 1995 Amtsgericht [Lower Court] Alsfeld [translation available]

Germany 5 April 1995 Landgericht [District Court] Landshut [translation available]

ICC March 1995 International Court of Arbitration, Case 7645 [English text]

Germany 15 February 1995 Landgericht [District Court] Oldenburg
 

Germany 9 November 1994 Landgericht [District Court] Oldenburg [translation available]

Switzerland 29 June 1994 Tribunal Cantonal [Appellate Court] Valais (Furniture case) [translation available]

Switzerland 17 May 1994 Tribunal Cantonal [Appellate Court] Vaud [translation available]
 

Hungary 20 December 1993 Budapest Arbitration award Vb 92205 2D

* Netherlands 27 May 1993 Arrondissementsrechtbank [District Court] Arnhem 2A1

Switzerland 7 May 1993 Richteramt [District Court] Laufen [translation available]

Germany 14 April 1993 Amtsgericht [Lower Court] Cloppenburg [translation available]
 

* Hungary 25 September 1992 Legfelsobb Bíróság [Supreme Court] 2E [translation available]

Germany 9 July 1992 Landgericht [District Court] Düsseldorf

Hungary 10 January 1992 Fovárosi Bíróság [Metropolitan Court] 2E [translation available]


UNCITRAL CASE DIGEST

The UNCITRAL Digest of case law on the United
Nations Convention on the International Sale of Goods
[*]

A/CN.9/SER.C/DIGEST/CISG/2 [8 June 2004]
Reproduced with the permission of UNCITRAL

[Text of Article 2
Digest of Article 2 case law
-     Consumer sales
-     Other exclusions]
ARTICLE 2

This Convention does not apply to sales:

(a) of goods bought for personal, family or household use, unless the seller, at any time before or at the conclusion of the contract, neither knew nor ought to have known that the goods were bought for any such use;
(b) by auction;
(c) on execution or otherwise by authority of law;
(d) of stocks, shares, investment securities, negotiable instruments or money;
(e) of ships, vessels, hovercraft or aircraft;
(f) of electricity.

DIGEST OF  ARTICLE 2 CASE LAW

1. This provision sets out those sales that are excluded from the Convention’s sphere of application. The exclusions are of three types those based on the purpose for which the goods were purchased, those based on the type of transaction and those based on the kinds of goods sold.[1]

Consumer sales

2. According to Art. 2(a), a sale falls outside the Convention’s sphere of application if it relates to goods which at the time of the conclusion of the contract are intended to be used personally, in the family or in the household. The buyer’s intention before or at the conclusion of the contract is relevant,[2] rather than the real use of the goods.[3] Thus, the sale of a car [4] or a recreational trailer [5] bought for personal use falls outside the Convention’s sphere of application.[6]

3. If the goods are purchased by an individual for a commercial or professional purpose, the sale does not fall outside the Convention’s sphere of application. Thus, the following situations are governed by the Convention: the purchase of a camera by a professional photographer for use in its business; the purchase of a soap or other toiletries by a business for the personal use of its employees; the purchase of a single automobile by a dealer for resale.[7]

4. If the goods are purchased for the aforementioned "personal, family or household use" purposes, the Convention does not apply "unless the seller, at any time before or at the conclusion of the contract, neither knew nor ought to have known that the goods were bought for any such use".[8] This narrows down the applicability of the exception and leads to the possibility of a conflict between domestic law and the Convention in those cases where the domestic law does not require that the seller either knew or ought to have known of the personal use.[9]

Other exclusions

5. The exclusion of sales by auction covers both auctions resulting from authority of law as well as private auctions. Sales at commodity exchanges do not fall under theses categories, as they merely constitute a particular way of concluding the contract.

6. The sale on judicial or administrative execution or otherwise by authority of law is excluded from the Convention’s sphere of application as such sales are normally governed by mandatory laws of the State under whose authority the execution is made.

7. The exclusion of sales of stocks, investment securities, and negotiable instruments is due to the intention to avoid a conflict with mandatory rules of domestic law.[10] Documentary sales are not covered by this exclusion.

8. The sale of ships,[11] vessels, aircraft,[12] and hovercrafts is not covered by the Convention either. However, the sale of parts of ships, vessels, aircraft, and hovercrafts falls under the Convention’s sphere of application, even where these are essential, such as engines,[13] since the exclusions from the Convention’s sphere of application have to be interpreted restrictively. According to one arbitral tribunal, the sale of a decommissioned military submarine does not fall within the scope of the article 2(e) exclusion.[14]

9. Although the sale of electricity is excluded from the Convention’s sphere of application, the Convention has been applied by a court in the sale of gas.


FOOTNOTES

* The present text was prepared using the full text of the decisions cited in the Case Law on UNCITRAL Texts (CLOUT) abstracts and other citations listed in the footnotes. The abstracts are intended to serve only as summaries of the underlying decisions and may not reflect all the points made in the digest. Readers are advised to consult the full texts of the listed court and arbitral decisions rather than relying solely on the CLOUT abstracts.

[Citations to cisgw3 case presentations have been substituted [in brackets] for the case citations provided in the UNCITRAL Digest. This substitution has been made to facilitate online access to CLOUT abstracts, original texts of court and arbitral decisions, and full text English translations of these texts (available in most but not all cases). For citations UNCITRAL had used, go to <http://www.uncitral.org/english/clout/digest_cisg_e.htm>.]

1. United Nations Conference on Contracts for the International Sale of Goods, Vienna, 10 March - 11 April 1980, Official Records, Documents of the Conference and Summary Records of the Plenary Meetings and of the Meetings of the Main Committee, 1981, 16 (hereinafter "Official Records").

2. See [GERMANY Bundesgerichtshof [Federal Supreme Court] 31 October 2001, available online at <http://cisgw3.law.pace.edu/cases/011031g1.html>].

3. See CLOUT case No. 190 [AUSTRIA Oberster Gerichtshof [Supreme Court] 11 February 1997, available online at <http://cisgw3.law.pace.edu/cases/970211a3.html>].

4. See CLOUT case No. 213 [SWITZERLAND Kantonsgericht [District Court] Nidwalden 5 June 1996, available online at <http://cisgw3.law.pace.edu/cases/960605s1.html>]; CLOUT case No. 190 [AUSTRIA Oberster Gerichtshof [Supreme Court] 11 February 1997, available online at <http://cisgw3.law.pace.edu/cases/970211a3.html>].

5. See [NETHERLANDS Rechtbank [District Court] Arnhem 27 May 1993, available online at <http://cisgw3.law.pace.edu/cases/930527n1.html>].

6. See, however, [GERMANY Landgericht [District Court] Düsseldorf 11 October 1995, available online at <http://cisgw3.law.pace.edu/cases/951011g1.html>].

7. For these examples, see Official Records, supra note 1, at 16.

8. See [GERMANY Bundesgerichtshof [Federal Supreme Court] 31 October 2001, available online at <http://cisgw3.law.pace.edu/cases/011031g1.html>].

9. Id.

10. For decisions excluding the Convention's applicability to the sale of shares, see CLOUT case No. 260 [SWITZERLAND Zürich Chamber of Commerce Arbitral Tribunal, 31 May 1996, available online at <http://cisgw3.law.pace.edu/cases/960531s1.html>].

11. For cases of inapplicability of the Convention to contract for the sale of ships, see Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, award No. 236/1997 [6 April 1998], available on the Internet at <http://cisgw3.law.pace.edu/cases/980406r1.html>; Yugoslav Chamber of Economy Arbitration Proceeding 15 April 1999, award No. T-23/97, available on the Internet at <http://cisgw3.law.pace.edu/cases/990415y1.html>.

12. For the inapplicability of the Convention to a contract for the sale of an aircraft, see Tribunal of International Commercial Arbitration at the Russian Federation Chamber of Commerce and Industry, award, No. 255/1996 [2 September 1997], available on the Internet at <http://cisgw3.law.pace.edu/cases/970902r1.html>.

13. See CLOUT case No. 53 [HUNGARY Legfelsobb Bíróság [Supreme Court] 25 September 1992, available online at <http://cisgw3.law.pace.edu/cases/920925h1.html>].

14. See Russian Maritime Commission Arbitral Tribunal, 18 December 1998, available on the Internet at <http://cisgw3.law.pace.edu/cases/981218r1.html>.


Pace Law School Institute of International Commercial Law - Last updated October 7, 2009
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