J. MILLARD TAWES, Governor                        795

to do so only if he in good faith believes that the prospect of payment
or performance is impaired. The burden of establishing lack of good
faith is on the party against whom the power has been exercised.

Sub-title 2

Sales

Part 1

Short Title, General Construction and Subject Matter
2—101. Short Title.

This Sub-title shall be known and may be cited as Uniform Com-
mercial Code—Sales.

2—102. Scope; Certain Security and Other Transactions Excluded
From This Sub-title.

Unless the context otherwise requires, this Sub-title applies to
transactions in goods; it does not apply to any transaction which al-
though in the form of an unconditional contract to sell or present
sale is intended to operate only as a security transaction nor does
this Sub-title impair or repeal any statute regulating sales to con-
sumers, farmers or other specified classes of buyers.

2—103. Definitions and Index of Definitions.

(1)  In this Sub-title 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 deal-
ing 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 Sub-title or to specified Parts
thereof, and the sections in which they appear are:

"Acceptance". Section 2—606.
"Banker's credit". Section 2—325.
"Between merchants". Section 2—104.
"Cancellation". Section 2—106 (4).
"Commercial unit". Section 2—105.
"Confirmed credit". Section 2—325.
"Conforming to contract". Section 2—106.
"Contract for sale". Section 2—106.
"Cover". Section 2—712.
"Entrusting". Section 2—403.
"Financing agency". Section 2—104.
"Future goods". Section 2—105.
"Goods". Section 2—105.
"Identification". Section 2—501.
"Installment contract". Section 2—612.
"Letter of credit". Section 2—325.