Uniform Commercial Code Definition
The Uniform Commercial Code (UCC) is a set of business laws that regularizes all business transactions and financial contracts in the United States. This refers to a set of systematic (standardized) business laws that guides business conducts, exchange of goods, credit institutions, bank transactions and all other commercial proceedings or financial arrangements.
UCC contains nine distinct articles which have been taken up by many states in the U.S. each of these articles address separate issues ranging from banking and loans to business transactions and commercial agreements. These set of laws were developed to regulate all commercial and financial transactions such as investment securities, sales and leasing, loans and credits among others.
A Little More on What is the Uniform Commercial Code
Most states in the U.S except Louisiana authorized the Uniform Commercial Code (UCC) due to its provisions and regularization on commercial and financial activities. When UCC was first published in 1952, it was adopted by not less than 50 states. With its adoption, UCC provided many states with congruous rules on how commercial and financial transactions should be undertaken.
The UCC is often subject to revisions as an article which caters for electronic payments was recently added to it. Despite that Louisiana is yet to fully adopt UCC, it ratifies the Article 3 of the code which relates to checks, drafts and other negotiable arrangements.
The UCC provides regulations and standard practises that must be abided to in loans, checks, financial and business arrangements. The nine distinct articles of UCC are not only effective in intrastate transactions but also interstate deals. For instance, when firms in a state decide to conduct business with companies outside their state, they are to oblige to the regulations and standards of UCC. While some states adopted the code with modifying its articles, Louisiana partially adopted it and modified some of its provisions, such as article 2.
UCC was not enacted by the congress of U.S, rather, it was established by the National commission, the American Law Institute and some other private organizations. Article 1 of the code comprehensively explains how the rules of the code are to be applied. Some other articles provide regulations of credits and loans, fund transfer, bulk sales, investment securities among others.
References for Uniform Commercial Code
Academic Research on Uniform Commercial Code (UCC)
Good faith performance and commercial reasonableness under the Uniform Commercial Code, Farnsworth, E. A. (1962). U. Chi. L. Rev., 30, 666.
” Good Faith” in General Contract Law and the Sales Provisions of the Uniform Commercial Code, Summers, R. S. (1968). Virginia Law Review, 195-267.
Legislative History of the Uniform Commercial Code, The, Braucher, R. (1958). Colum. L. Rev., 58, 798.
A Comment on the jurisprudence of the Uniform Commercial Code, Danzig, R. (1974). Stan L. Rev., 27, 621.
Uniform Commercial Code, Summers, R. (1972).
The Law of Sales in the Proposed Uniform Commercial Code, Williston, S. (1950). Harvard Law Review, 63(4), 561-588.
A short history of the preparation and enactment of the Uniform Commercial Code, Schnader, W. A. (1967). U. Miami L. Rev., 22, 1.
Uniform Commercial Code Methodology, Hawkland, W. D. (1962). U. Ill. LF, 291.
The Good Faith Purchase Idea and the Uniform Commercial Code: Confessions of a Repentant Draftsman, Gilmore, G. (1980). Ga. L. Rev., 15, 605.
Remedies for Breach of Contracts Relating to the Sale of Goods Under the Uniform Commercial Code: A Roadmap for Article Two, Peters, E. A. (1963). The Yale Law Journal, 73(2), 199-287.
Proceeds Under the Uniform Commercial Code, Henson, R. D. (1965). Colum. L. Rev., 65, 232.