Uniform Commercial Code Act
The Uniform Commercial Code is a collection of standardized laws that apply to commercial transactions in the United States. The UCC is a model code, so it does not have legal effect unless specific jurisdictions enact the provisions as statutes.
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Need
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Considering that each state has its own laws, it is difficult for businesses from different states to conduct transactions with each other in the absence of a uniform standard of law. The UCC serves this function, and businesses can refer to it in case there is any conflict.
Process
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The text of the UCC is written by experts in commercial law and sent to the Uniform Law Commissioners for approval. The Uniform Law Commissioners meet and decide whether to endorse the drafts or send them back to the experts to be revised.
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Coverage
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As of 2010, the UCC covered transactions relating to sales, leases, negotiable instruments, bank deposits, funds transfers, letters of credit, bulk sales, documents of title, investment securities and secured transactions. And the law has been enacted in some form in all 50 states, the District of Columbia and the Virgin Islands.
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