SKILLED REPRESENTATION IN BUSINESS,
REAL ESTATE & FINANCIAL SERVICES LITIGATION

  1. Home
  2.  » 
  3. Commercial Law
  4.  » What is the Uniform Commercial Code?

What is the Uniform Commercial Code?

On Behalf of | Aug 6, 2021 | Commercial Law

The law is complex because there are so many different types of law. For example, the whole system divides into civil and criminal laws.

According to Georgetown Law Library, commercial law in the US occurs under the Uniform Commercial Code. Although, it does have some different points that change how it applies in different places and scenarios.

History

The UCC came from an effort by the National Conference of Commissioners and the American Law Institute. It is technically not a law, but rather guidelines that each individual jurisdiction can adopt into law.

Application

The UCC is in force in at least partially in every jurisdiction in the US. Not every area uses the complete UCC. It is not a federal law, and each area has the ability to alter it as it sees fit.

If you are a business owner, it is smart to learn how the UCC applies in your area and the areas in which you do business. It can impact many aspects of how you operate and interact with others.

Coverage

While the use of the UCC may vary, it is a good idea for you to understand the parts of it that may apply to your business situations.

The UCC begins with some general provisions. It then goes into detail on certain commercial situations, including bulk transfers, bank deposits, letters of credit, sales, commercial paper, collections, funds transfers and leases. It also covers investment securities, secured transactions and warehouse receipts.

While the UCC is not a complete law across the US, it does apply in some part in every situation. You should understand it and how it applies to your business based on your location.