The Uniform Commercial Code creates the legal foundation and structure of American business transactions. Everyone engaging in commercial transactions in the United States, on any level, is directly impacted by the Code. The Uniform Commercial Code was written by some of the best legal minds in the history of the United States legal system. Their expertise, and the resulting statutory scheme, was greatly enhanced by direct input from leaders in the business and banking communites, thereby insuring that this law would reflect the reality of the business world.
The Uniform Commercial Code governs virtually every phase of a commercial transaction in goods, at the wholesale or retail level: the Code governs all sales and leases of tangible personal property; negotiable instruments such as checks, promissory notes, and bank drafts; the relationship between a bank and its customer; electronic funds transfers; letters of credit; movement of goods in commerce; the sale of commodity paper; and secured financing of goods.
In addition to the 29.4 million small businesses in America whose daily activities are governed and regulated by the UCC, every purchasing consumer in America consistently interacts with the Uniform Commercial Code.
Anyone engaged in business in the United States needs a solid working knowledge of the Uniform Commercial Code. Such a base of information will increase efficiency, minimize exposure, and generally create a smoother business operation. This flows from the fact that the UCC incorporates many standard methods of doing business within its text, and creates vehicles whereby new methods can be integrated within the statutory framework of the Code.
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