Question

1. Why do you think the UCC is or is not important to merchants in order to effectively do business? Be sure to give examples. (Hint: Discuss how a common law contract is different from a contract between merchants under the UCC. Then explain why you feel the UCC difference is or is not important to merchants.)

Answer 1

The Uniform Commercial Code, is a body of laws that applies to commercial and business transactions only. The U.C.C. is a model of laws and therefore is only a guideline of applicable commercial and business transactions laws. Every jurisdiction is free to adopt those portions applicable to their legal issues.

Currently, virtually every state in the U.S. has adopted a portion of the U.C.C. to its legal framework. Ultimately, the aim of the U.C.C. is to streamline the manner in which commercial and business transactions are handled in the U.S. and to provide clarity, simplification, and consistency in these matters.

For example, You have an agreement to sell 2,000 special order shirts to Emma Company, each bearing the company's unique logo. After shipping the shirts to Emma Company, Emma Company notifies you that they will not accept the special order. You are left with 2,000 unique t-shirts you cannot sell on the open market to just any buyer. Where do you turn for guidance? The Uniform Commercial Code (U.C.C.) provides recommendations as to how this situation will play out.