What Is UCC & Why Is It Important?
Whether you’re new to owning a business, or you’ve operated your own company for decades, it seems that every city, county, and state has its own set of laws governing how to conduct business.
While business laws may differ based on location, the Uniform Commercial Code (UCC) works to help standardize many aspects of how your business works (and transacts) with other companies across the country.
“The policies instituted under the Uniform Commercial Code (UCC) are largely focused on the activities of small businesses and entrepreneurs. Part of the intent is to clear up confusion over how each state might separately regulate such operations,” (Investopedia).
What Is UCC?
Referred to as the “backbone of American Commerce,” the UCC was first established in 1952 with the goal of harmonizing commercial laws across the United States. There are a total of 9 unique articles that make up the UCC—all of which are continually revised to meet our nation’s changing economy.
At its core, the UCC provides a framework for how sales and commerce is to take place in the United States.
The nine articles include:
- General Provisions
- Sales & Leases
- Negotiable Instruments
- Bank Deposits and Collections
- Letter of Credit
- Bulk Sales
- Documents of Title
- Investment Securities
- Secured Transactions
Read this updated outline of the nine articles for further clarification.
It’s important to note that the UCC is not a federal law. Instead, it was created by an organization and is adopted by states. That means that most, but not all, U.S. states utilize these articles, and some omit certain articles altogether.
As a business owner, it’s important to have a basic understanding of these articles and how they apply to your operations and how you do business with other companies across the country.
Find a UCC Lawyer Near You
Our experienced team is ready to help you find the answers and provide the support you need to make your business a success.
We understand that starting (as well as operating) a business can be hectic and confusing. Trust our team to help you avoid common business mistakes and help you stay in compliance with local and federal laws.
To get started, contact us for a consultation.