Ucc and Ucita

THE UCC’S ARTICLE 2 AND THE UCITA

Melissa Rogers

American Intercontinental University Online

July 2, 2010

Abstract

This report shall cover the first significant attempt of the government to promote uniformity in commercial law. It shall also cover the difference in the UCC and the UCITA as well as the difference in sales and licensing a product or good. Finally, it will define the believed reason the drafters of the UCITA chose to make it a separate act.

The UCC’s Article 2 and the UCITA

Before the UCC and the UCITA, one of the first most significant of governmental attempts to promote uniformity in commercial law from state to state was the first Article of the United States Constitution. According to Article 1, Section 8, Clause 1 & 3, it states “that congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States,” and “it shall regulate commerce with foreign nations, and among the several states and with Indian Tribes.” (House. 2004). This means the Congress has the right and the power to promote a uniform system in the commercial regulations. Also, in Gibbons vs Ogden, Webster stated that the grounds were to govern commerce and to assign it under the preservation of a uniform law. (OYEZ, 2010.). This was due to the steamboat business monopoly taxes between New York and New Jersey. This article was placed to ensure the meaning of “among all states” to include the consistency of fairness when dealing with state to state undertakings.

The major difference between Article 2 of the Uniform Commercial Code (The UCC) and the UCITA is that the UCC’s Article 2 only deals with the sale of tangible goods. To where the UCITA would also include the internet, databases and the data they hold as well as creating a commercial agreement on the modification transfer or distribution of software. Most of what is covered by the UCITA is not tangible goods...