UCC law, therefore, is derived from three places: For the purposes of this discussion, we will refer to the Uniform Commercial Code sections in the Model Code.Code section text an numbers in each state will be identical or very similar.When a court resolves a particular dispute, the record of this decision is case law, which may be used as authority in a future case.
This discussion also is a very brief and general attempt to give you some idea of how a few of the UCC code sections work.
As usual, however, you should not rely on any portion of this book to provide you with a legal solution to any specific problem.
Provides application of the UCC, subject matter and general definitions. Accordingly, the UCC is not entirely uniform in all 50 states.
Also, each state’s court system can reach different results when interpreting the code provisions.
" The UCC answers most of these questions by basically providing the parties with a "50-page fine print contract," whether they know it or not.
The parties are almost always allowed to "contract out of the UCC." If the merchants do discuss and agree to terms different from the UCC, then the parties’ own terms will apply.
Most state legislatures also add a state comment describing how the new Uniform Commercial Code changed the law in that state. This would promote interstate commerce, create more comfort and security for interstate business transactions, increase competition and lower costs.
These official comments also fill in the gaps in the UCC and help courts, lawyers and business people better understand the UCC. A national conference of lawmakers, lawyers and college professors worked for years studying the various commercial laws of the 50 states, debating the pros and cons of these variations and drafting what they viewed as the best "Uniform Commercial Code." This process has continued for decades.
The law is usually written broadly so that it may be applied judicially. An "Official Comment from the drafters of the Uniform Commercial Code" follows each UCC code section. Negotiable instruments such as promissory notes and bank checks. Covers the relationship between banks as they pass bank checks, deposits and credits among them. The variations in state law became a tremendous problem for businesses and banks dealing across state lines.
The official comments explain the intent behind each code section and provide examples of appropriate factual situations. Many business people, lawmakers and academics saw a need for a uniform set of laws covering commercial transactions to facilitate interstate commerce.
Another chapter of this book will discuss UCC Article 9 on Secured Transactions. Codes are intended by the legislature to create new law in the targeted subject areas.