Explain the Uniform Commercial Code

Understanding the Uniform Commercial Code.

The Uniform Commercial Code is a statutory scheme developed by the National Conference of Commissioners on Uniform State Laws. The enactment of versions of the Uniform Commercial Code in all U.S. states is considered a major step towards developing a unified national system for certain business transactions.

History

The Uniform Commercial Code, initially published in 1952, has been enacted in one form or another in each of the 50 states in the U.S.

Function

The primary function of the Uniform Commercial Code is to develop similar laws in all of the U.S. states pertaining to commercial transactions. Because so many commercial transactions cross state lines, uniform laws render these dealings easier.

Effects

The effect of the Uniform Commercial Code has been to make consummating business transactions easier and more predictable.

Misconceptions

The most common misconception is that the Uniform Commercial Code applies to all business transactions. In fact, the Code applies only to the sale of goods (automobiles, for example) with a value of over $500.

Warning

Complying with the specific provisions of the Uniform Commercial Code is complicated in many cases. An individual or business dealing with commercial or business transactions involving the sales of goods should retain an attorney to assist with Code issues.

References

• Cornell Law School, Uniform Commercial Code
• Uniform Commercial Code in a Nutshell, Bradford Stone & Kristen David Adams, 2008
• National Conference of Commissioners on Uniform State Laws

Resources

• Duke University School of Law, Uniform Commercial Code: Research Guide