To properly manage US businesses, the government provides a Uniform Commercial Code (UCC) governing commercial dealings. The regulations encompass nearly all fields of business transactions, excluding real estate. The UCC’s legal rules ensure uniformity of business dealings across the country by creating a standard procedures manual. The codes will help guide your business transactions, especially over state lines.
The Creation of the Uniform Commercial Code
The UCC was a guidebook first published in 1952 to create uniform standards for business deals across the nation. All 50 states and the District of Columbia have since adopted the code. All US territories, apart from American Samoa, have adopted the regulations. It is important to note the UCC is not a federal law, but a system of guidelines for the states to implement. Although there are slight variations in state regulations, the codes are extremely similar.
What Is the Uniform Commercial Code?
Currently, the UCC contains 11 articles to guide business principles and periodically receives additions for evolving business needs. The articles contain regulations for general provisions of selling, negotiating, and creating business contracts. The standards set forth in the articles allow businesses to make contracts specific to their needs. Commonly used UCC reference codes include:
- Breach of contract
- Contract accuracy
- Ownership rights
- Security interest
- Electronic payment regulations
- Party liability
- Customer relations
There are many facets of commercial law, the above only representing a small fraction. The UCC is often a reference for contractual writing, contract disputes, and monetary transactions.
While the UCC states the rules, each article is difficult to interpret without legal counsel. Business owners and board members often are not familiar with the intricacies of UCC regulations, leaving business deals improperly maintained. This is especially true when the home state has not adopted all the UCC policies, but only implemented some. In addition to variance among the states, the establishment of Article 9 is creating issues for businesses with secure transactions.
Find an Attorney to Help
Business owners invest everything in their companies, which is why it’s important to have a commercial transaction attorney with experience. Our legal team at Bennett, Weston, LaJone & Turner, P.C. has the skills to properly manage your commercial transactions and interpret UCC regulations. Our attorneys can help solidify your business acquisitions, contracts, purchases, and sales. Many businesses struggle with the interpretation of the 11 UCC articles, leaving themselves open to claims and lawsuits. To guarantee your business security and commercial dealings, contact us for a consultation.