Uniform Commercial Code Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Uniform Commercial Code, written in plain English, along with examples of how it is used.
What is Uniform Commercial Code?
(n) Uniform Commercial Code is the statute to regulate commercial money transactions. It contain the provisions,rules, forms to govern commerce, secured loans and while dealing with negotiable instruments. These statutes had been adopted by almost all states as a statute to Govern commercial matters.
History and Meaning of Uniform Commercial Code
The Uniform Commercial Code (UCC) is a set of laws that govern commercial transactions in the United States. It was first developed in the 1940s and was designed to unify the various state laws regarding commercial transactions. The UCC is divided into nine articles, each addressing different aspects of commercial law such as sales, leases, negotiable instruments, and secured transactions. It has been adopted, with some variations, by all 50 states.
The UCC is an important law for businesses engaged in commercial transactions because it provides a uniform set of rules and regulations that ensure consistency across state lines. It also provides clarity and certainty for parties entering into a transaction, reducing the risk and cost of disputes.
Examples of Uniform Commercial Code
- When a business purchases goods from another business, the transaction is governed by the UCC's rules for sales.
- A business taking out a loan and offering its assets as collateral would be governed by the UCC's rules for secured transactions.
- A check that is transferred from one person to another is governed by the UCC's rules for negotiable instruments.
Legal Terms Similar to Uniform Commercial Code
- Commercial law: The body of law that governs commercial transactions and activities.
- Contract law: The body of law that governs the formation, interpretation, and enforcement of contracts.
- Business law: The body of law that governs the formation, operation, and dissolution of businesses.