First, some backstory. The UCC is not a “law” per se, but rather a model proposal from the federal government to state legislatures to strive to bring all states into uniformity on a subject, particularly in areas where states’ laws should be comparable. It makes sense in the realms of selling commodities, contracts, and finance since many of these transactions transcend state boundaries.
A plethora of “Uniform” plans exist, some of which have never been approved by a single state. By far the most generally embraced of all “Uniform” plans has been the UCC. A state might accept the UCC in its whole (or in parts) or alter it to fit its own requirements.
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How Does the UCC Impact You?
Whether you operate a company or are considering establishing one, the UCC will most likely affect you in areas such as selling products, borrowing money, or any leases or contracts you may face, particularly if you conduct business over state borders. The UCC protects you by preventing you from being caught off guard by various laws in different states.
Most crucially, at the core of the UCC is the “implied covenant of good faith and fair dealing,” which implies that by entering into an agreement together, you and the person you are selling to, purchasing from, or dealing with must be functioning under this covenant of good faith and fair dealing.
What You Should Know
Non-lawyers may find it difficult to understand the Uniform Commercial Code. What you should know is that practically every contract, lease, or financing agreement should adhere to the UCC as enacted by your state. That is why it is vital that you utilize professional, attorney-drafted paperwork. We provide product-specific UCC contracts, as well as a generic UCC contract for services and other forms of UCC service contracts. Since the UCC is for your advantage, it makes sense to ensure that all of your forms, contracts, and commercial operations comply with it.
