THE PURPOSE AND FUNCTION OF THE UNIFORM COMMERCIAL CODE (UCC) I. Introduction
The purpose of this document is to introduce you to the purpose as well as the functions of the Uniform Commercial Code or the UCC. The UCC started in 1952 and it regulates commerce within the United States by setting uniform, but flexible standards regarding commercial transactions. II. UCC Purpose
The UCC is made up of nine separate articles that specifically contain provisions relating to a very specific area of Commercial law. Each article provides a set of regulations for the dealings within the seller as well as the buyer that protect both parties. A. Articles
1. Article 1 – General Provisions.
2. Article 2 – Sale of Goods.
3. Article 3 – Commercial Paper.
4. Article 4 – Handling of financial documents.
5. Article 5 – Model laws on letters of credit.
6. Article 6 – Buyers must notify creditors providing credit to the seller must take measures to ensure that the seller pays stated debts when the buyer pays for their products. 7. Article 7 – Rules based on the relationships between sellers and buyers related to transportation costs. 8. Article 8 – Related to insurance rules and transfer of bonds, stocks, or other investment securities. 9. Article 9 – Related to Uniform Commercial Code-Secured Transactions if a debtor defaults on their obligation. III. Forming a sales contract under UCC Article 2
A. Formation and Elements Necessary.
1. Goods or any item that can be moved or sold. Article 2 relates to the sale of stated good based on a codification of commercial law that exists. Article 2 provides the contract terms where the seller supplies a contract for a sale of goods, but fails to specify in writing anything related to either price or delivery. What is discussed is how many and how much? As well as delivery time or payment due. The UCC solves most of the issues in which the buyer may experience throughout the...
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