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Simple English definitions for legal terms
Uniform Commercial Code
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A quick definition of Uniform Commercial Code:
The Uniform Commercial Code (UCC) is a set of rules that governs how businesses buy and sell things. Every state in the United States has adopted some version of the UCC. It covers things like buying and leasing goods, using checks and other types of payments, and borrowing money. It helps make sure that businesses follow the same rules when they do business with each other.
A more thorough explanation:
The Uniform Commercial Code (UCC) is a set of laws that govern commercial transactions in the United States. It has been adopted in some form by every state and the District of Columbia. The UCC covers a wide range of topics related to commercial transactions, including sales and leases of goods, negotiable instruments, and secured transactions.
- When a business buys goods from another business, the UCC provides rules for the sale of those goods. For example, the UCC specifies that the seller must deliver the goods to the buyer and that the buyer must pay for them.
- If a business wants to borrow money and use its assets as collateral, the UCC provides rules for creating a security interest in those assets. For example, the UCC requires that the security interest be properly recorded to be enforceable against other creditors.
These examples illustrate how the UCC provides a framework for commercial transactions and helps ensure that businesses can rely on consistent rules across different states.
Uniform Code of Military Justice | Uniform Gifts to Minors Act (UGMA)