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Analysis Of The Uniform Commercial Code

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Summary
A Louisiana attorney is constantly asked by non-Louisiana peers if the state ever adopted the Uniform Commercial Code or if they are still using the old, outdated, Napoleonic Code. Though Louisiana has stark interpretations of the relevance of the UCC, the state has adopted the code in piecemeal. This article is a partial synopsis of introducing readers to a few of the concepts of UCC as adopted by Louisiana compared to the existing principles of the law of sales.
Key Learning Points
The Uniform Commercial Code remains under study by the Louisiana Law Institute. The Uniform Commercial Code presumes that most states are based on English Common Law. Louisiana was, as remains, based on the French Napoleonic Code and theories borrowed from the Spanish Civil Codex (Callens, 2012, p. 70). These ideas were carried over when the territory was purchased by the United States, virtually guaranteeing residents old civil on contracts and property. To be cynical, the UCC would have destroyed the corrupt political atmosphere at the time, especially the extortion events surrounded the governor Edwin Edwards. Instead, Louisiana decided to "grandfather" the old contract and business definitions. Similarly, many other states' legislatures adopted the UCC, but have significant differences with one or more sections, and have amended some items that they deem misguided or unorthodox with their own sense of what the law should be.
Much of the law is so similar that the differences may be technical only, so Louisiana does just fine in their day-to-day commercial transactions. Louisiana, due in part of its political history, was originally the only state governed by Civil Law rather than the Common Law. The latter was a direct inheritance fr...

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Louisiana has, more or less, enacted its own civil code unique to its own heritage. Many non-Louisianans still visualize the state clinging on to an old antiquated doctrine and rejecting the dogma of the UCC. However, Louisiana has not adopted all of the UCC. Specifically, Louisiana has chose not to pass Article 2, Sales of Goods, into law. Louisiana’s own civil law continues to govern the sale of goods in that state. In Louisiana, no attempt is made to distinguish sales from other transactions, such as contracts, leases, and partnerships.
It is evident that with increased business involving other states, and possible loss of business due to different rules and laws, Louisiana should continue to rethink their stance and weigh the advantages and disadvantages of fully adopting the UCC. This would allow them to better compete with the ever changing environment.
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