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The Ucc

In: Business and Management

Submitted By sumersillem
Words 471
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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.

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