Uniform Commercial Code

Definition

The Uniform Commercial Code (UCC) is a comprehensive statute governing commercial transactions, sales, and commercial paper, adopted in substantially the same form across all 50 states.

Purpose

The UCC standardizes and harmonizes the laws of sales and other commercial transactions across the United States. It facilitates commerce by providing a consistent legal framework, reducing legal complexity and promoting fair dealings in commercial practices.

Examples of Use

• Sales Contracts: Regulating the sale of goods, including terms of delivery, payment, and risk of loss.
• Negotiable Instruments: Governing the use of checks, promissory notes, and other negotiable instruments.
• Secured Transactions: Outlining the rules for secured interests in personal property, ensuring creditors can secure repayment of debts.

Related Terms

• Contract Law: The body of law governing legally binding agreements between parties.
• Commercial Paper: Financial instruments such as checks, promissory notes, and drafts used in business transactions.
• Secured Interest: A legal claim on collateral that has been pledged, usually to secure a loan.

Notes

The UCC is periodically revised to address emerging issues in commercial practices. Understanding its provisions is essential for businesses engaged in interstate commerce.