Uniform Commercial Code

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Commonly Asked Questions about Uniform Commercial Code

What does the Uniform Commercial Code govern contracts for?

Contract law is governed by the common law and the Uniform Commercial Code UCC. Common law governs contractual transactions with real estate, services, insurance, intangible assets and employment. UCC governs contractual transactions with goods and tangible objects (such as a purchase of a car).

What is the purpose of commercial code?

A commercial code is a set of laws designed to regulate commerce. Commercial codes can facilitate commerce by providing protocols for resolving common challenges and disputes. In the U.S., a Uniform Commercial Code (UCC) has been adopted in all 50 states.

What does the Uniform Commercial Code provide?

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States. It is not a federal law, but a uniformly adopted state law. Uniformity of law is essential in this area for the interstate transaction of business.

What does the Uniform Commercial Code not cover?

Article 2 does not cover transactions involving service contracts. In addition, the sale of real estate is not covered by Article 2, but rather by Article 9 of the Uniform Commercial Code. For example, the sale of an automobile or a computer would be covered by Article 2.

What does the Uniform Commercial Code do?

The Uniform Commercial Code (UCC) is a set of business laws that regulate financial contracts and transactions across state lines. The UCC was created and championed by state officials, not federal agencies. The code consists of nine articles covering aspects of banking and loans.

What does the Uniform Commercial Code not apply to?

The UCC concerns a wide variety of commercial issues, including the sale of goods, banking and security interests. The UCC does not apply to: The sale of real estate. Security interests or liens in real estate.