Understanding the Uniform Commercial Code (UCC)

The Uniform Commercial Code (UCC) is a set of laws that governs commercial transactions in the United States. It was first published in 1952 and has since been adopted in some form by every state in the country. The UCC provides a standardized set of rules for buying and selling goods, financing transactions, and other commercial activities.

Here are some key aspects of the UCC that attorneys should be familiar with:

  1. Article 2: Sales

Article 2 of the UCC governs the sale of goods, including contracts for the sale of goods, warranties, and remedies for breach of contract. It defines what constitutes a “good” and provides rules for determining when title to goods passes from the seller to the buyer.

  1. Article 3: Negotiable Instruments

Article 3 of the UCC governs negotiable instruments, such as checks and promissory notes. It provides rules for the transfer of these instruments and establishes the rights and obligations of parties involved in these transactions.

  1. Article 4: Bank Deposits and Collections

Article 4 of the UCC governs bank deposits and collections. It provides rules for the transfer of funds between banks, and establishes the rights and obligations of parties involved in these transactions.

  1. Article 9: Secured Transactions

Article 9 of the UCC governs secured transactions, such as loans secured by personal property. It establishes the rules for creating and enforcing security interests in personal property, including the requirements for perfection and priority of these interests.

  1. Electronic Transactions

The UCC has been amended in recent years to address electronic transactions. Many provisions of the UCC, including those relating to negotiable instruments and secured transactions, have been updated to reflect the use of electronic records and signatures.

In conclusion, the Uniform Commercial Code is an essential body of law for attorneys who work in the area of commercial transactions. It provides a standardized set of rules for buying and selling goods, financing transactions, and other commercial activities, and has been adopted by nearly every state in the United States.