Unit 4 Ip

Abstract

This paper will break down what each Article under the Uniform Commercial Code Act. Also this is to demonstrate why the UCC act should be followed intermationally as when as nationally.

UCC Articles

The Uniform Commercial Code (UCC) was first published in 1952, to synchronize all states that handle commercial transactions to achieve the same goal in commercial laws so that all states have the flexibility to meet their local goals as well has federal. The federal government did not want states to all following different rules when it came to the same product for example product that is handled in three different states. One state produces the product, the other markets the product and the third ships the product, now if these three states had different rules for the same product situations would get confusing when it came time for each company to collect their money for what they did with the product. By having the UCC in place all states have the same requirements to meet with the regulations.

The Uniform Commercial Code has 9 different articles:

Article 1. - General Provisions

Article 2. Sales

Article2A. Leases

Article 3. Negotiable Instruments

Article 4. Bank Deposit

Article 4A. Funds Transfers

Article 5. Letters of Credit

Article 6. Bulk Transfers and [Revised] - Bulk Sales

Article 7. Warehouse Receipts, Bills of Lading and Other Documents of Title

Article 8. Investment Securities

Article 9. Secured Transactions

Each article represents a different part of the commercial sales, these articles are not laws but recommendations for states to follow if that is what they chose to do.

Since the UCC is not required as a law but is looked to as a guide for regulations regarding the commercial transactions in the United States. Due to the fact that the United States is in the export and import realm the Uniform Commercial Code should be utilized because it is considered international business and all the rules should apply...