Explanation of the Uniform Commercial Code

The UCC governs specific types of transactions.

The Uniform Commercial Code is a set of uniform laws dealing with sales of goods and other commercial transactions. Those with specific questions about the code should contact an attorney.

Purpose

Each U.S. state has its own law regarding commercial transactions. Historically, this variation in law made it difficult for parties to conduct transactions across state lines, because the terms of the sales contract would be construed differently. Lack of uniformity created a considerable problem.

Uniform Laws

In 1951, the National Conference of Commissioners on Uniform State Laws and the American Law Institute created a set of uniform laws called the Uniform Commercial Code. Uniform laws are not actually laws; rather they are recommended laws. They do not become legally active until a government--whether federal or state--chooses to enact the uniform laws via legislation.

Uniform Commercial Code

The Uniform Commercial Code is a suggested body of law to govern sales of goods (personal property) and certain financial transactions. The code is often aligned with common contract and financial law but also dispays certain significant variations.

Success

The Uniform Commercial Code, or some variation of it, has been adopted by most states in their own statutes.

References

• "Cases and Materials on Contracts, Sixth Edition"; Alan E. Farnsworth et al.; 2002
• Cornell Law School: Uniform Commercial Code

Resources

• Cornell Law School: Uniform Commercial Code Locator by State