Uniform Commercial Code
Commercial Code and its various Sections
The Uniform Commercial Code (UCC) is a recommendation of laws that provide regulation and legal rules applied in business or commercial dealings as well as transactions in the U.S. The UCC typically regulate sale or transfer of all personal properties (Tepper, 2014). However, it is important to note that the UCC is not applicable during processes of real properties dealings. In the United States, the UCC normally standardizes all business laws. This means that the set of laws are critical in the creating a uniformity within all states. The laws have been revised several times since they were created and published in 1952 to make them adoptable in different states (Sepinuck, 2008). The ordinances are only capable of impacting only the states that have adopted the code. Specifically, the UCC code is valid to all small entrepreneurs as well as business people.
The first main section addressed by the UCC Code is the unmanageable contractual and legal requirements encountered during most business operations (Sepinuck, 2008). This means that the code is divided into nine articles, where each article has a specified provision addressing a specified area as far as commercial or business law concerned (Legal information institute, 2012). In this regard, the UCC code is able to address business operations such leases, sales, bank deposits, letters of credit, bulk sales, negotiable instruments, funds transfers, bulk transfers, investment securities, bills landing including any other titled document as well as warehouse receipts (Tepper, 2014).
Additionally, the UCC is thought to be a statutory program that runs through various business laws such as legalizing, administering and in various process that involve recording various lien and contract instruments. The second section of the UCC code deals specifically with unifying UCC code in various applicable laws found in different states in the process of eliminating legal barriers towards con ducting interstate business activities (Legal information institute, 2012). This is because it is mandatory to comply with specific laws found in different states when conducting business operations. Therefore, it is important to note that there are structural differences in legal acts as a result of specific and unique local customs in every state. This is despite the fact that the substantive form of all business and commercial legal acts are seen to be identical. Therefore, this section of the UCC code is critical in the process of unifying interstate commercial and business acts (Legal information institute, 2012). Consequently, all fifty states in the United States have adopted the UCC code although having slight variations. The Code is the most elaborate as far as uniform acts is concerned.
The Importance of each Section of the UCC on different Aspects of Commerce
The UCC codes are critical in validating various business or commercial contracts as per their specifications (Legal information institute, 2012). However, the parties involved in such commercial contracts are required by the code to fill in all provisions aligning them with the provisions found in the UCC. This is in cases where the parties of contractual agreements have failed or went silent in including the UCC acts in their commercial agreement. The UCC code imposes the process of streamlining and unifying various business transactions such as notes, checks as well as other routine commercial papers (Tepper, 2014). It is worth noting that different business parties such as the consumers and merchants are provided different provisions in the UCC code.
The main reason why this is different is because merchants are seen to be more familiar with commercial activities relative to individual consumers. During such contractual agreements, the UCC code tries to minimize the utilization of legal formalities between all parties involved (Legal information institute, 2012). Consequently, the act eradicates added costs such as seeking lawyer services or interventions. Moreover, the instruments are precise and brief because such contractual agreements lack legal jargon. This is despite the fact that there are those customers or merchants who prefer legal services from professional lawyers as they find it more efficient (Legal information institute, 2012).
In addition, most commercial transactions using UCC code provisions cover secured properties. Lenders or a bank that has the title to the property mostly finances the secured properties. Typically, the lender holds them or bank until all outstanding loan is paid off. However, it is important to note that the UCC plays a major role in the process of eradicating differences as well as ambiguities in state laws (Sepinuck, 2008). Therefore, the code is specific on the provisions that require all contracts of purchase or sale of goods valued $500. The contractual agreement is only enforceable if such a transition is clearly evidenced through written.
The CT Corporation White Paper
The CT Corporation White Paper seeks to discuss any occurrences of corporate dissolution by highlighting the causes as well as any potential problems that it may bring to a specific business. Besides, the paper plays a crucial role in exploring how reinstatements are useful in solving various business problems mainly caused by administrative dissolution. For instance, when an important file such as a confidential annual report leak to the public it develops a negative standing with the state, regulatory or legal authorities (Sepinuck, 2008). Such cases typically require reinstatement as it allows LLC or corporations to restore their powers and rights consequently resuming in their particular businesses. Therefore, the CT Corporate White Paper is essential in addressing businesses’ current position and getting it to a desired standing. Business ruling is important to corporates as it capable of providing better understanding to various business acts (Legal information institute, 2012). This is because it includes every aspect involved in the duty of care before legal decisions are made from an informed basis.
Sepinuck L. S. (2008). Practice under Article 9 of the Uniform Commercial Code. New York. ABE Books.
Legal information institute. (2012). Uniform Commercial Code. Retrieved from https://www.law.cornell.edu/ucc. Date Accessed. January 31, 2017.
Tepper P. (2014). The Law of Contracts and the Uniform Commercial Code. New York. Cengage Brain.