Free Essay

The Ucc

In: Business and Management

Submitted By sumersillem
Words 471
Pages 2
The Uniform Commercial Code (UCC) is a "code" or a "collection of statutes." This is the type of law that may be adopted by all U.S. legislatures, including the U.S. Congress, the Virginia General Assembly, other state legislatures, and even a county board of supervisors. Codes are intended by the legislature to create new law in the targeted subject areas. The other source of law is "case law" or "common law." For centuries, courts have been in the business of resolving disputes. The "Uniform Commercial Code" is a model. It is not law in any state unless and until a state legislature adopts it as the law of that state. Any state can decide not to adopt the UCC or can decide to make revisions to the code that satisfies that state’s particular heritage or commercial needs. Also, each state’s court system can reach different results when interpreting the code provisions. Accordingly, the UCC is not entirely uniform in all 50 states and despite this the UCC has facilitated much greater uniformity of commercial laws. The Uniform Commercial Code Article 2 on the Sale of Goods is basically a codification of existing commercial law. The UCC drafters tried to write down the generally understood business practices between merchants for the sale of goods. The UCC "fills in the gaps.”
Types of contracts covered by the UCC
The UCC concerns a wide variety of commercial issues, including: the sale of goods; the lease of goods; banking and security interests such as commercial paper negotiable instruments such as bank checks and promissory notes; bank deposits, collections, and the relationship between banks; modern electronic funds transfers; bank issued letters of credit used by business entities to guarantee payment obligations; bulk transfers of a business’ inventory; warehouse documents of title and the documents concerning ownership and risk of loss; investment securities; and secured transactions for personal property, accounts receivable, also equipment and inventory.
The UCC does not apply to contracts which are covered by common law
Common law requires more definiteness than the UCC. Contract law developed primarily by state courts, applies to contracts for the sale of services, intangible property (stocks, intellectual property), or real estate specifically: the sale of real estate; security interests or liens in real estate; service agreements or employment contracts; contracts involving significant labor; and marriage settlements or other domestic relations law.
Final Reflection
This week’s study was very eye opening to me. I have personally have not knowingly encountered the Uniform Commercial Code before in my life, but know realize that I could have done so when purchasing goods online which I do fairly often. I think that the UCC is much broader than most can imagine; including most lawyers.
Reference
http://www.fullertonlaw.com/construction-law-survival-manual/uniform-commercial-code-sale-of-goods.html#b…...

Similar Documents

Premium Essay

Ucc Laws

...1. Some of the differences between the UCC laws and traditional law of contracts are as follow: --The UCC does not control the contracts between companies and the traditional law does, UCC only controls the sale of goods. The traditional laws are standards that have been set different types of judges over the years that have been formed into a law. UCC laws and regulation are not set by judges if not by the government in which many of the states are starting to adopt. They are different in the aspect that when a lawsuit is brought in front of a judge or court they have to determine which law to apply to the case. Common law refers to many different type of laws that have been set and UCC only refers to one of them and that is the sale of goods. 2. Unconscionability = This describes a term that is used in contracts which provides and enforcement to make sure that term in the contract are followed correctly. There will be an enforcement of the contract to make sure that one party is not favored when making the contract. Example would be a seller of a good such as food, shelter, offers a contract between both parties. Promissory Estoppel = This is where a person is denying, or not wanting to understand or approve of a certain law. A good example would be a mother and a daughter the mother advises her that if she passes away the inherence will be hers. The mother passes but never changes her will to add the daughter, but the daughter believes she has the......

Words: 620 - Pages: 3

Premium Essay

The Uniform Commercial Code (Ucc)

... B. Federal Statutes. i. Federal statutes are enacted by the United States Congress and apply to every state. ii. Any federal statute that violates the United States Constitution will be held unconstitutional. C. State and Local Statutes and Ordinances i. State statutes are laws enacted by state legislatures. ii. Any state law that is found to conflict with the United State Constitution, or with that state’s constitution, will be deemed unconstitutional. D. Uniform Laws i. Uniform (“model”) statutes are drafted for adoption by the states. ii. A state can adopt or reject all or part of a uniform law, as the state legislature wishes. iii. An example of a uniform law is the Uniform Commercial Code (UCC). E. The Expanding Scope of Statutory Law i. Legislative bodies and administrative agencies assume an ever-increasing share of lawmaking. F. Statutory Law and the Paralegal i. A paralegal may often assist in cases involving violations of statutory law. ii. A paralegal working on cases governed by statutory law needs to know how to both locate and interpret the relevant state or federal statutes. VI. ADMINISTRATIVE LAW A. Agency Creation and Function i. Administrative agencies are created by legislatures to administer and enforce legislation and to issue rules to implement the goals of specific legislation. ii. Examples of federal administrative agencies are: 1. Environmental Protection......

Words: 1366 - Pages: 6

Free Essay

Libertarian Approach to Indecent Dressing in Ucc

...Libertarianism is a set of related political philosophy that uphold liberty as the highest political end. This includes emphasis on the primacy of individual liberty, political freedom, and voluntary association. Libertarianism directly opposes authoritarianism. Libertarianism is the moral view that agents initially fully own themselves and have certain moral powers to acquire property rights in external things (Stanford encyclopedia of philosophy). Libertarianism is sometimes identified with the principle that each agent has a right to maximum equal empirical negative liberty, where empirical negative liberty is the absence of forcible interference from other agents when attempts to do things. In a sense, Libertarianism is sometimes has to do with or equivalent to self-ownership. This is to say that, the Libertarian approach entrusts absolute freedom to individuals to embark on whatever activity they so wish be it joining association; politically, socially, academically just to mention few regardless of any moral view or perception that exists. Here, the individual is somehow his own boss and does things that pleases him. This research puts to bear the relevancy of the libertarian approach pertaining to the indecent dressing of the female students of the University of Cape Coast. Imaging not having control over anything you do and living your life as other people want you to live it. With viewing life from the Libertarian philosophy, libertarians will argue that each......

Words: 3901 - Pages: 16

Premium Essay

Create a Flowchart of the Three Branches of Government and Associate Two(2) Uniform Commercial Code (Ucc) Clauses for Each Branch of Government. Designate the Relationships Among the Government Branches.

...Create a flowchart of the three branches of government and associate two (2) Uniform Commercial Code (UCC) clauses for each branch of government. Designate the relationships among the governmental branches. In an accompanying document, exemplify the types of powers of each branch of government and include these items: • Taxing and spending powers • Limits on both federal and state governmental actions • Due process • Equal protection In a three to four (3-4) page flowchart, include the following: 1. Organize all three (3) branches of government in a flowchart format. 2. Designate two (2) UCC clauses that align with each branch. 3. Illustrate the interactivity among the branches of government in the flowchart. 4. In a separate document, exemplify the types of powers of each branch of government. Your assignment must follow these formatting requirements: • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length. The specific course learning outcomes associated with this assignment are: • Explain the functions of law, the nature of crimes and torts, and the structure of the U.S. legal......

Words: 292 - Pages: 2

Premium Essay

Ucc Law

...The U.C.C. is the longest and most elaborate of the uniform acts. It has been a long-term, joint project of the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute (ALI). Judge Herbert F. Goodrich was the Chairman of the Editorial Board of the original 1952 edition [1], and the Code itself was drafted by some of the top legal scholars in the United States. The Code, as the product of private organizations, is not itself the law, but only recommendation of the laws that should be adopted in the states. Once enacted in a state by the state's legislature, it becomes true law and is codified into the state’s code of statutes. When the Code is adopted by a state, it may be adopted verbatim as written by ALI/NCCUSL, or may be adopted with specific changes deemed necessary by the state legislature. Unless such changes are minor, they can affect the purpose of the Code in promoting uniformity of law among the various states. The ALI/NCCUSL have also established a permanent editorial board for the Code. This board has issued a number of official comments and other published papers concerning the Code. Although these commentaries do not have the force of law, courts interpreting the Code often cite them as persuasive authority in determining the effect of one or more provisions. Courts interpreting the Code generally seek to harmonize their interpretations with those of other states that have adopted the same or a similar provision,......

Words: 352 - Pages: 2

Premium Essay

Uniform Commercial Code

...Uniform Commercial Code “The UCC is a model act drafted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. This model act contains uniform rules that govern commercial transactions. For the UCC or any part of the UCC to become law in a state, that state needs to enact the UCC as its commercial law statute. Every state (except Louisiana, which has adopted only parts of the UCC) has enacted the UCC or the majority of the UCC as a commercial statute (Cheeseman, 2013, p. 300).” “Generally, Article 2 of the UCC applies to all sales contracts, whether they involve merchants or not. However, Article 2 contains several provisions that either apply only to merchants or impose a greater duty on merchants. UCC 2-104(1) defines a merchant as (1) a person who deals in the goods of the kind involved in the transaction or (2) a person who by his or her occupation holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction (Cheeseman, p. 302).” A scenario of how Article 2 of the UCC makes changes to the common law of contracts is tied to how the common law rule works in the first place an offer must be made definite when regarding its terms of when it was accepted. Under Article 2 of the UCC it allows a sales contract to be made by a seller even though terms can be left open for discretion, as long as the seller’s parties intended to make a contract it is legit. The UCC is simply there to fill......

Words: 611 - Pages: 3

Premium Essay

Compare and Contrast Ucc Contracts and Common Law Contracts

...Compare and contrast UCC contracts and common law contracts. UCC contracts and common law contracts are both governed by contract law. In other words, any contract that is written up has to follow the rules and regulations of contract law in all fifty States of America. Common law contracts are dictated by any changes in the contract. For instance, a change in a common law contract is seen as a rejection or a counter offer. When this happens it causes the offeree to change to the offeror and vice versa. Most importantly in order for a common law contract to be valid it has to have description, quantity, time, nature of the work or service, and an offer. UCC the Unified commercial code contract are still bonded if any change occurs. A binding contract will depend on the circumstances to the person that accepts the contract and to the person who drew up and wrote the contract and how much deviation to the contract. Also, a common law contract requires a consideration to keep a contract open but a UCC contract do not have too. Greg’s Part There are a few distinct differences between common law and UCC contracts. Common law contracts relate to transactions with real estate, services, intangible assets, and employment. UCC covers transactions with goods and tangible objects. Under common law, when the contract is has a change, it is a rejection and becomes a counter offer. With the UCC, even if there has been a change, it still may be a binding contract. There...

Words: 314 - Pages: 2

Premium Essay

Bhopal Chemical Plant Explosion

...issue. I believe the Union Carbide Corporation conducted their business in an ethical manner for the most part. UCC knowingly went in on a business deal with UCIL to produce a pesticide call Sevin. After the business was formalized and some time passed, UCIL wanted to cut costs by producing the Methyl Isocyanate at the plant located in India. While the building was suitable to create the pesticide through purchasing and importing the finished chemicals it wasn’t equipped to create them. Also, the building itself wasn’t located in an area that would be safe to produce Methyl Isocyanate. When UCIL started producing Methyl Isocyanate, UCIL as well as the Indian government, ignored the safety standards for subsidiaries set forth by Union Carbide Corporation. On December 2, 1984 an explosion occurred resulting in a cloud of gas that killed roughly 3,000 and injured thousands of others. After all the chaos started to settle, UCC claimed they were not held responsible for the disaster as part owners of UCIL. This is one instance I wasn’t quite fond of what UCC stated. If you as a business decide to conduct a venture with another entity you need to assume and realize everything that could encompass the business you open up, even negative and horrendous disasters like the one they experienced. Keep in mind this wasn’t an act of god, but a deliberate act of negligence. If UCC and UCIL would have been cautious and ethically responsible in the first place by either, checking on......

Words: 987 - Pages: 4

Free Essay

Ucc Legislative History

...Uniform Commercial Code (UCC) Legislative History On September 21, 1957 Massachusetts adopted the Uniform, Commercial Code. Effective October 1, 1958, the Code replaced the Uniform Sales Act, the Negotiable Instruments Law, the Uniform Warehouse Receipts Act, the Uniform Bills of Lading Act, the Uniform Stock Transfer Act, the Uniform Trust Receipts Act, and numerous other statutes. Massachusetts thus became the second state to enact the Code, following the lead of Pennsylvania, where the Code, enacted in April 1953, took effect on July 1, 1954. In March 1958 the Code was enacted in Kentucky, effective July 1, 1960. Proposals to enact the Code will undoubtedly come before legislatures in other states in the course of the next few years, and it seems likely that several other states will join the procession at their 1959 sessions (Braucher, 1958). The Uniform Commercial Code (UCC or the Code), first published in 1952, is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states within the United States of America. The Uniform Commercial Code, or UCC, is a very large collection of legal rules regarding many important business, or “commercial,” activities. The UCC originally was created by two national nongovernmental legal organizations: the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute (ALI) (Steingold, 2013). As...

Words: 3509 - Pages: 15

Premium Essay

For a Contract to Exis

...enter into a contract and do so in good faith. Also, the purpose of the contract must be legal. Much of U.S. commercial contract law is now codified under the Uniform Commercial Code (UCC). Private organizations, including the American Law Institute and the National Conference of Commissioners on Uniform State Laws, analyzed common law precedents before drafting the UCC. The first draft of the UCC was adopted by most states in the 1950s and 1960s. The UCC is periodically updated to reflect current changes in law and to include new areas of law. The UCC has specific articles covering sales and leases of goods, negotiable instruments, bank deposits, funds transfers, letters of credit, bulk sales, warehouse receipts, investment securities, and secured transactions. The UCC is particularly important for business in outlining the rights and responsibilities of buyers and sellers in commercial sales. Another important article sets forth responsibilities between banks and their customers in honoring deposits and checks. The UCC helps clarify and provide consistency in U.S. law governing commercial transactions. Prior to the law's enactment, the rules of commerce could vary widely among the states. Business organizations support the UCC because it has made the rules for doing business more predictable. The UCC is now in effect in every state, although there are still some differences in the codes of each state and not every state has enacted the entire......

Words: 489 - Pages: 2

Premium Essay

The Uniform Commercial Code (Ucc)

...Name Kaplan University PA130: Unit 9 Assignment Date The Uniform Commercial Code (UCC) is a set of regulations that is used to standardize sales and transactions in the United States. The UCC is not law, but more of a collection of statutes that can vary from state to state. Article 2 of the UCC is a model statute that has been adopted by every state, except Louisiana, and is used resolve disputes regarding the sale of goods. Goods covered by the UCC are defined as any item that is identifiable and movable at the time of sale. Spagnola, L. (2006). Goods that are covered by Article 2 may include furniture, electronics, or vehicles. Article 2 does not include transactions involving service contracts or the sale of real estate. The UCC applies if the contract concerns a sale of goods in a commercial setting. Examples of when the UCC applies include when a fruit vendor buys apples from an apple dealer, when a buyer purchases a radio from an electronic store, and when a buyer purchases furniture from a furniture store. Article 2 of the UCC also includes a Statute of Frauds rule, which states that any contract for the sale of goods that exceeds $5000 must have a sufficient record to indicate that a contract for sale has been made. (§ 2-201). Should a record incorrectly state a term agreed upon by the parties, it is still sufficient; however, it is not enforceable beyond the amount of goods stated in the record. In accordance with § 2-209, should a signed......

Words: 480 - Pages: 2

Free Essay

Ley Ucc

...cancelación de servicios de energía eléctrica, acueductos y alcantarillados, teléfono, gas o cualquier otro servicio básico análogo; (5) notificaciones sobre incumplimiento, aceleración, reposesión, ejecución, desahucio o el derecho a subsanar incumplimientos relativos a contratos de arrendamiento sobre una residencia principal y contratos cuyo objeto sea alguna deuda garantizada con la residencia principal del deudor; (6) notificaciones sobre la cancelación o terminación de una póliza o de los beneficios de una póliza de seguro médico o de seguro de vida; (7) notificaciones para retirar un producto del mercado o el aviso al público sobre un defecto esencial de un producto; (8) Transacciones efectuadas al amparo del Código Uniforme de Comercio (UCC) a excepción de las efectuadas bajo el Artículo 1-107 y 1-206, Artículo 2 y Artículo 2(a); (9) Transacciones que estén legisladas o reglamentadas por la Ley Notarial o su reglamentación aplicable; (10) cualquier otra Transacción que se declare excluida por ley especial; (11) cualquier otra transacción o acto que necesite requisito de forma conforme al Código Civil para su validez. (12) aquéllas que conlleven cualquier documentación que deba acompañarse con materiales peligrosos, pesticidas o cualquier otra sustancia o material tóxico en la transportación o el manejo de dichos materiales y sustancias. (c) Esta Ley aplicará a cualquier Documento Electrónico o Firma Electrónica que, de otra manera, quedaría excluido del alcance de......

Words: 6466 - Pages: 26

Premium Essay

Cisg vs. Ucc

...Environment of Business LLAW-110 Dr. Tareq Tawil Assignment #1: Comparison: CISG vs. UCC Horeya El Bakry SSN: 1499 Introduction Article 2 of the Uniform Commercial Code (UCC) and the Contracts for the International Sale of Goods (CISG) both talk about the offers of products, and a few progressions they affected in that division. These two understandings not being laws, here and there they can have disagreements with national laws of a particular nation in regards to exchanging, and possibly not disagreement but rather simply a few distinctions. For instance when the UCC was initially dispatched in the United States of America in all its 50 expresses (1952), all the states acknowledged the progressions that would accompany UCC in regards to exchanging laws between these states aside from the condition of Louisiana, as the Civil law of the state was negating with the regular law. CISG was dispatched in 1980 amid a United Nations gathering in Vienna, and it was settled upon by specialists that if worldwide exchanging laws between nations would change to what the CISG brought to the table, this would spare awesome expenses and troubles that go about as hindrances in front of universal exchanging, and more than 80 nations today apply the terms settled upon in the CISG. Differences between UCC and CISG One of the differences in the middle of UCC and CISG is the territory of purview. UCC is an interstate law, applies to the greater part of the states in the USA with......

Words: 966 - Pages: 4

Premium Essay

Business Law

...Finally, provide additional facts to your scenario that will show how the Statute of Frauds and Parole Evidence Rule under UCC Article 2 can come into play. Article 2 of the UCC governs sales contracts, or contracts for the sale of goods. The rule is that when a UCC provision addresses a certain issue, the UCC governs; when the UCC is silent, the common law governs. Sales contracts are not governed exclusively by Article 2 of the UCC but are also governed by general contract law whenever it is relevant and has not been modified by the UCC. A sales contract is a contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price. Article 2 deals with sale of goods; it does not deal with real property such as real estate, services, or intangible property such as stocks and bonds. If a dispute involves real estate or services, the common law applies. In some situations, the rules under the UCC can vary quite a bit, depending on whether the buyer or the seller is a merchant. A sale is the passing of title to property from the seller to the buyer for a price. To be characterized as a good, the item of property must be tangible, and it must be moveable. Tangible property has physical existence; it can be touched or seen. Intangible property is such as corporate stocks and bonds, patents and copyrights, and ordinary contract rights, has only conceptual existence and thus does not come under Article 2. A moveable item can be carried...

Words: 1342 - Pages: 6

Free Essay

Ucc vs. Ucita

...Robyn Spelts American InterContinental University BUSN150 Assignment 4 UCC v. UCITA * Before the UCC and the UCITA, what was one of the first, and most significant, of the U.S. government's attempts to promote uniformity in commercial laws from state to state? (Hint: think of commerce and Constitution.) The "Commerce Clause" of the U.S. Constitution was one of the first acts of U.S. government in regulating commerce. It supplies Congress with the sanction to regulate not only business, but any interaction conducted between organizations situated in different States (Gibbons v. Ogden (1824)). This authority encompasses all areas of interstate commerce (radio, telephone, waterways, highways). This also incorporates intrastate handling that has a collective and significant influence on interstate trade (employment, agricultural, and housing prejudice). * Based on the information presented above, what do you see as the major differences between Article 2 of the Uniform Commercial Code and UCITA? Article 2 of the UCC is designed to expedite the sale, consignment and distribution of tangible products. A tangible product is one in which you can touch or feel (Robyn Spelts. June 24, 2011). The purpose of Article 2 is to bring sales law closer to the needs and practices of businessmen. The UCITA is anticipated to simplify the authorizing of intangible computer-related property, with a prominence on allowing proprietors of software the capability to preserve......

Words: 803 - Pages: 4