Legal Definitions - UCC

UCC

The Uniform Commercial Code (UCC) is a set of laws that governs commercial transactions in the United States. It provides a standardized set of rules for buying and selling goods and services, as well as for financing these transactions.

• When a business buys inventory from a supplier, the UCC provides rules for the sale of goods, including warranties and remedies for breach of contract.
• If a company wants to borrow money to purchase equipment, the UCC provides rules for secured transactions, such as using the equipment as collateral for the loan.
• The UCC also provides rules for negotiable instruments, such as checks and promissory notes, which are commonly used in commercial transactions.

These examples illustrate how the UCC provides a framework for businesses to conduct transactions in a consistent and predictable manner. By following the rules set forth in the UCC, businesses can reduce the risk of disputes and ensure that their transactions are legally enforceable.