Uniform Commercial Code Disputes
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What Is the Uniform Commercial Code?
The Uniform Commercial Code, or "UCC" for short, is a major body of statutes that governs business and contract matters. It sets forth many different definitions, guidelines, and procedures for dealing with contract claims and lawsuits. Almost all states have adopted the UCC and adhere to its principles and guidelines.
What Does the UCC Cover?
The UCC mainly covers sales of goods (moveable objects, not land or real estate). The titles of the Articles help give a picture of what is covered in the code. They are:
- Article 1- General Provisions: Covers many definitions and basic concepts
- Article 2- Sale of goods: Covers sales and also leases of goods.
- Article 3- Commercial Paper: This has to do with money, promissory notes, and other legal tender
- Article 4- Bank Deposits and Collections: Covers issues such as bank deposits, checks, credit lines, and transfers of funds
- Article 5- Letters of Credit: Covers issues with payment of debt obligations
- Article 6- Bulk Transfers: Covers issues like transfers of business assets in their entirety from one company to another
- Article 7- Warehouse receipts, Bills of Lading and other documents of title: Covers risk in situations involving wholesales of goods
- Article 8- Investment Securities: Regulation of non-tangible interests
- Article 9- Secured Transactions: This covers security in transactions involving personal items.
Therefore, the UCC is a broad, comprehensive body that covers many, many different situations. It often serves as a guide by "filling in" information in a contract that is unintentionally left out. Persons who wish to avoid UCC conflicts should therefore be careful that contracts are very clear and don’t leave out important pieces of information.
Who Does the Code Apply To?
The Uniform Commercial Code generally applies to persons who are "merchants." These are persons who are skilled in a field of business or who have specific business knowledge above the level of a normal citizen. This includes persons such as business managers, sales persons, contractors, skilled workers, and other persons.
The UCC applies whenever there is at least one merchant involved in the transaction. Contracts between persons who aren’t merchants generally are not covered by the UCC. This is why it is called a "uniform commercial code" – it is supposed to provide guidelines for official commerce and business activities rather than personal interactions.
Do I Need a Lawyer for Help with Business Transactions?
As you might be able to tell, the Uniform Commercial Code can be a daunting body of law to deal with. It’s in your best interests if you need to hire a lawyer for any type of business or contract needs. This includes topics such as contract drafting and review, negotiations, and resolving contract disputes. Your attorney can provide legal guidance on such matters and can assist you in court during a lawsuit if needed.
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Last Modified: 11-12-2013 02:49 PM PST
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