Why is the uniform commercial code important?
The Uniform Commercial Code, or UCC, brings order to potentially chaotic interstate business transactions by providing a model for uniform state business laws and procedures.DefinitionBusiness.gov defines the Uniform Commercial Code as a set of recommended laws that regulate the way states and territories do business with each other.Federal or State?The federal government does not impose the UCC. Instead, state governments adopt this collection of laws on recommendation by private commercial organizations.ContentsThe UCC contains several sections that cover all aspects of commercial transactions, including sales, leases, letters of credit, title documents and secured transactions, according to the Duke University School of Law.Small Business LoansThe UCC plays an important role in lending to small businesses.
