Written by attorneys · grounded in primary & secondary sources — see below
An attribute of a governmental regulation that is exploitative or harmful, preventing payment by the means provided by the regulation from discharging the buyer's obligation.
Sources & Authorities· 2 primary sources
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Uniform Acts
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How it applies
Common Examples
6
Capital Controls Block Direct Wire
Priscilla Parks contracted to buy goods from Pablo Perez with payment by direct local-currency wire. After a foreign regulation blocked wires over a low threshold, Perez refused staggered transfers because they added exchange risk and administrative costs absent from the original term. The regulation's uneven application against foreign sellers rendered it predatory, so Perez could lawfully withhold delivery.
Payment Method Dispute Under Regulation
Pilar Pena, as seller, faced a foreign capital-control regulation that eliminated the contract's cryptocurrency payment channel. The buyer tendered national currency through a state bank. Because the tender did not replicate the original risk profile, the regulation operated in a predatory manner and Pena could withhold delivery.
Eastern Air Lines, Inc. v. Gulf Oil Corp.415 F. Supp. 429 (1975)
Private Raid Without Sovereign Leave
Paige Porter organized an armed expedition against enemy shipping during declared war. The venture lacked any commission from her own sovereign and sought only personal plunder. Because the action constituted a predatory expedition, Porter's seizure was held unlawful under the law of nations.
Brown v. United States12 U.S. 110 (1814)
Nonconsensual Acts Against Minors
Philip Powell was charged with predatory sexual conduct after approaching minors who could not consent. The statute treated such acts as falling outside protected private conduct between adults. The predatory character of the conduct removed any constitutional shelter.
Lawrence v. Texas539 U.S. 558 (2003)
Attempted Assault on a Child
Preston Pratt was convicted of attempted predatory criminal sexual assault after targeting a child victim. The court examined whether the steps taken showed intent to commit the predatory offense. Evidence of planning and approach satisfied the attempt elements.
People v. Scott14 Cal.4th 544, 59 Cal.Rptr.2d 178, 927 P.2d 288 (1996)
Extraterritorial Conduct Claim
Prosperity Investments sued a foreign bank for alleged predatory trading practices that affected domestic investors. The conduct occurred entirely on foreign exchanges with no domestic transactional hook. The court dismissed the claim for lack of sufficient territorial connection.
Morrison v. National Australian Bank Ltd.561 U.S. 247, 255 (2010)
Common questions
Frequently Asked
1
When does a regulation count as predatory under UCC § 2-614(2)?+
A regulation counts as predatory when it is exploitative or harmful in a manner that prevents substituted payment from discharging the buyer's obligation. The statute distinguishes such regulations from neutral ones that merely alter the payment channel.
539 U.S. 558 (2003)Constitutional Law
…acting in private. A substantial number of sodomy prosecutions and convictions for which there are surviving records were for predatory acts against those who could not or did not consent, as in the case of a minor or the victim of an assault. As to these, one purpose for the prohibitions was to ensure there would be no…