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Uncover the History Behind UCC Creation

Uncover the History Behind UCC Creation

There is no single law. The UCC is instead a legal framework upon which each of the United States’ attempts to model its business laws. The concept of a Uniform Commercial Code law is based on a movement to create uniform acts. Uniform acts, such as the UCC, began with the establishment of the Uniform Declaratory Judgments Act in 1922. Uniform acts seek to establish a national standard against which individual states can draft their laws to align.
The UCC, which seeks to establish Uniform Commercial Code law across the United States, serves the same function as other uniform acts because the UCC is a development of the idea that would be beneficial to standardize laws nationwide. The creation of a national uniform commercial code law is predicated upon each State agreeing to be bound by the UCC, which is drafted by the U.S. Uniform Law Commission, or ULC. Any proposed changes which the U.S. Uniform Law Commission submits are subject to approval by the National Conference of Commissioners on Uniform State Laws and the American Law Institute.
In 1999, the attempt to revise Article Two of the UCC met with disagreement between the American Law Institute and the National Conference of Commissioners on Uniform State Laws. The disagreement concerned the passage of a revision meant to strengthen consumer protection in digital transactions.
The American Law Institute objected to some of the proposed changes to the Uniform Commercial Code law. As a result, the proposed amendment to the UCC, which would have been known as Article Two B, was instead renamed the Uniform Computer Information Transactions Act and was supported by the National Conference of Commissioners on Uniform State Laws without support from the American Law Institute. 
In response, the American Law Institute submitted its own attempt to create a Uniform Commercial Code law governing internet transactions, which it named the Principles of the Law of Software Contracts. The American Law Institute’s measure was met with a similar response. Both attempts to create a Uniform Commercial Code law that provided protection for online interactions were grounded in a belief that the UCC as it is currently written fails to provide adequate protection for consumers in a world where commerce is happening online much more frequently.
The UCC is not just concerned with protecting consumers. An equally important aspect of the creation of a Uniform Commercial Code law is to provide businesses with rights and protections which may not be present if the development of commercial codes were left to individual states. Attempts to draft a Uniform Commercial Code law involved efforts from many prominent legal minds, practicing, sitting judges, and many individuals with a large amount of exposure to business law as it is practiced currently.

Read These Important Facts About the UCC Corporate Compliance

Read These Important Facts About the UCC Corporate Compliance

The Uniform Commercial Code (UCC) was first published in 1952. These Uniform Commercial Codes represented an attempt to provide an increasingly interconnected system of interstate commerce with a more uniform legal system to govern these interactions.

Uniform Commercial Codes became more essential as it became commonplace for a single transaction to involve goods which may have produced in Minnesota, stored in a warehouse in Illinois, purchased by a company headquartered in Texas, and delivered to a store from in Maine. Besides involving the transfer of ownership in each of these jurisdictions, the goods in this example would have also been affected by the laws of several jurisdictions while in transit. 

Before the development of the Uniform Commercial Code, the transaction above could have been subjected to as many as fifteen separate and distinct instances of taxes. Taxes for goods crossing intra-national borders contributed to rising sales prices. The development of Uniform Commercial Codes was seen as an attempt to keep prices under control within the United States and to promote domestic production and consumption of American goods.

The Uniform Commercial Code is not a law in and of itself. Instead it is meant to serve as a guide for individual states seeking to devise their own commercial laws. The Uniform Commercial Code may be adopted exactly as they are written or may be adapted so as to be in accord with the individual traditions of the State. Unless the changes are very minor, the goal of establishing a set of Uniform Commercial Codes will be defeated. 

California has enacted the Uniform Commercial Codes with only a minor change. The Uniform Commercial Code exchanges the word “article” for the word “division” in order to maintain its normal naming structure for its codes. California also uses a different punctuation system for the Uniform Commercial Codes because while the Uniform Commercial Code uses hyphens to denote section numbers, California law codes only permit the use of hyphens to denote instances when a succession of laws is being discussed. California does not provide an alternate punctuation, electing to simply drop the hyphens. Arkansas substitutes “chapters” for “articles” since articles are only used in that State to refer to sections of the State Constitution.  

When the time came to adopt the Uniform Commercial Code, Louisiana made substantial changes to the Uniform Commercial Codes which prevents the Code from having truly universal adoption. It made the same minor change that Arkansas did, renaming “articles” as “chapters.” However, it also elected to make a more substantial change: Louisiana decided against adopting Article Two in favor of continuing its civil law tradition in regards to selling goods. It has, however, adopted the other ten Uniform Commercial Codes.

Quick Uniform Commercial Code Overview

Quick Uniform Commercial Code Overview

There are eleven Articles
which comprise the Uniform Commercial Code (UCC). Article 1 of the UCC is known
as the General Provisions of the UCC. The other Articles are as follows:
Article 2, Sales; Article 2a, Leases; Article 3, Negotiable Instruments;
Article 4, Bank Deposits; Article 4a, Funds Transfers; Article 5, Letters of
Credit; Article 6, Bulk Transfers and Bulk Sales; Article 7, Warehouse
Receipts, Bills of Lading and Other Documents of Title; Article 8, Investment
Securities; and Article 9, Secured Transactions.

In 2003, Article 2 and
Article 7 were modernized in a major revision, though the revisions to Article
2 have not been adopted by any states yet. Although Article 6 is considered
obsolete by the National Conference of Commissioners on Uniform State Laws, it
remains in effect in many jurisdictions. 

Despite being present in one
document, each Article of the UCC bears only the slightest connection to any
other. Most articles bear little relevance on the others.
The exception is that each Article uses terms defined in Article 1
and Article 9 covers the paperwork required to support the intermediate
Articles.

What You Need to Know About The Uniform Commercial Code Background

What You Need to Know About The Uniform Commercial Code Background

The Uniform Commercial Code was first published in 1952. These uniform commercial codes represented an attempt to provide an increasingly interconnected system of interstate commerce with a more uniform legal system to govern these interactions. 
Uniform commercial codes became more essential as it be came commonplace for a single transaction to involve goods which may have produced in Minnesota, stored in a warehouse in Illinois, purchased by a company headquartered in Texas, and delivered to a store from in Maine. Besides involving the transfer of ownership in each of these jurisdictions, the goods in this example would have also been affected by the laws of several jurisdictions while in transit.
Before the development of the Uniform Commercial Code, the transaction above could have been subjected to as many as fifteen separate and distinct instances of taxes. Taxes for goods crossing intra-national borders contributed to rising sales prices. The development of uniform commercial codes were seen as an attempt to keep prices under control within the United States, and to promote domestic production and consumption of American goods. The Uniform Commercial Code is not a law in and of itself. 
Instead it is meant to serve as a guide for individual states seeking to devise their own commercial laws. The Uniform Commercial Code may be adopted exactly as they are written, or may be adapted so as to be in accord with the individual traditions of the state. Unless the changes are very minor, the goal of establishing a set of uniform commercial codes will be defeated.
California has enacted the uniform commercial codes with only a minor change. The Uniform Commercial Code exchanges the word “article” for the word “division,” in order to maintain its normal naming structure for its codes. California also uses a different punctuation system for the uniform commercial codes, because while the Uniform Commercial Code uses hyphens to denote section numbers, California law codes only permit the use of hyphens to denote instances when a succession of laws are being discussed. 
California does not provide an alternate punctuation, electing to simply drop the hyphens. Arkansas substitutes “chapters” for “articles,” since articles are only used in that state to refer to sections of the state Constitution. 
When the time came to adopt the Uniform Commercial Code, Louisiana made substantial changes to the uniform commercial codes, which prevents the Code from having truly universal adoption. It made the same minor change that Arkansas did, renaming “articles” as “chapters.” However, it also elected to make a more substantial change: Louisiana decided against adopting Article Two in favor of continuing its civil law tradition in regards to selling goods. It has, however, adopted to other ten universal commercial codes.

Read This Before UCC Filing

Read This Before UCC Filing

Under the terms of the UCC, filing is governed by Article 9. UCC filings involve mortgages on real property, claims made against natural resources on the property, such as gas, minerals, or any other resource such as timber.
UCC filings also include agricultural liens, which can be filed against farm products or goods and services produced by farming. Farm products in an UCC filing include crops, livestock both alive and unborn, supplies which make farming possible, and any crops or livestock that have not yet been manufactured. 
A UCC filing may also be considered under Article 9 if the claim involves an item that has been present for a long enough period of time to have become considered as belonging there, for example, a well on a plot of land.
In order for UCC filings to be valid, the UCC filing must include statements that provide the name of the debtor, the person against whom the debt has been assumed, and detail the consideration which is used to secure the contract. UCC filings can cover any interaction between any consignors, consignees, lessors, lessees, bailors, bailees, licensors, licensees, owners, registered owners, buyers, or sellers.

Discover the Formation of UCC

Discover the Formation of UCC

There is no single Uniform Commercial Code (UCC) law. The UCC is instead a legal framework upon which each of the United States attempts to model its business laws. The concept of a Uniform Commercial Code law is based on a movement to create uniform acts. 
Uniform acts, such as the UCC, began with the establishment of the Uniform Declaratory Judgments Act in 1922. Uniform acts seek to establish a national standard against which individual states can draft their laws to align. 
The UCC, which seeks to establish Uniform Commercial Code law across the United States, serves the same function as other uniform acts because the UCC is a development of the idea that would be beneficial to standardize laws nationwide.
The creation of a national Uniform Commercial Code law is predicated upon each state agreeing to be bound by the UCC, which is drafted by the U.S. Uniform Law Commission (ULC). Any proposed changes submitted by the U.S. Uniform Law Commission is subject to approval by the National Conference of Commissioners on Uniform State Laws and the American Law Institute. 
In 1999, the attempt to revise Article Two of the UCC met with disagreement between the American Law Institute and the National Conference of Commissioners on Uniform State Laws. The disagreement concerned the passage of a revision meant to strengthen consumer protection in digital transactions. The American Law Institute objected to some of the proposed changes to the Uniform Commercial Code law.
As a result, the proposed amendment to the UCC which would have been known as Article Two B was instead renamed the Uniform Computer Information Transactions Act and was supported by the National Conference of Commissioners on Uniform State Laws without support from the American Law Institute.
In response, the American Law Institute submitted its own attempt to create a Uniform Commercial Code law governing internet transactions, which it named the Principles of the Law of Software Contracts. The American Law Institute’s measure was met with a similar response. Both attempts to create a Uniform Commercial Code law that provided protection for online interactions were grounded in a belief that the UCC as it is currently written fails to provide adequate protection for consumers in a world where commerce is happening online much more frequently. 
The UCC is not just concerned with protecting consumers. An equally important aspect of the creation of a Uniform Commercial Code law is to provide businesses with rights and protections which may not be present if the development of commercial codes were left to individual states. Attempts to draft a Uniform Commercial Code law involved efforts from many prominent legal minds, practicing attorneys, sitting judges, and many individuals with a large amount of exposure to business law as it is practiced currently. 

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