Uniform Commercial Code Summary

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According to Kubasek, Browne, Dhooge, Herron, and Barkacs (2016), the Uniform Commercial Code (UCC) was created in 1952 and all fifty states, as well as the District of Columbia and the U.S. Virgin Islands, have adopted it either in part or in whole. The UCC becomes the law for any state that adopts all or portions of it, becoming the commercial code for that state. It comes with 11 sections, called articles. The articles cover a wide range of business transactions ranging from sales contracts to bankruptcies, to secured transactions. The UCC is vitally important to sales law, particularly for businesses that conduct transactions in multiple states (Kubasek, et al., 2016, p. 174). UCC Articles The UCC contains 11 articles, with Article 1 containing general provisions, essentially providing definitions and various general provisions. Article 2 contains provisions regarding sales, and Article 2A contains provisions covering leases. Article 3 contains provisions regarding negotiable instruments. Article 4 contains provision regarding bank deposits, Article 4A contains provisions regarding wire transfers, and Article 5 contains provisions regarding letters of credit. Article 6 contains provisions regarding bulk sales, auctions, and …show more content…

As noted above, Article 2 covers contracts, specifically regarding sales contracts. UCC 2A, like Article 2, is the rules of contract for lease contracts. The rules in both articles are functionally the same, with 2A language adapted to apply to the lease transaction. Both articles address basic contract rules and provisions, “including rules for offer and acceptance of a contract, statute of frauds, warranties, assignment of interests, risk of loss and remedies upon breach of contract” (www.UniformLaws.org, para. 3). Clearly, sales and lease contracts are significant to commerce, and thus, so too is the role of both of these UCC

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