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What is a uniform commercial code?

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Quick Answer

The Uniform Commercial Code, or UCC, is a body of laws, rules and regulations that governs commercial transactions. It is designed to promote efficiency and uniformity of business activities across different jurisdictions.

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Full Answer

The UCC was initially drafted in 1952 and is composed of nine sections covering principles, such as sales, leases, negotiable instruments, secured transactions and letters of credit. It was created to address the growing level of difficulty with complying with the many legal and contractual requirements that hampered effectively conducting transactions among businesspeople in different states.

Because the law and other circumstances relative to commercial transactions is continually changing, the National Conference of Commissioners on Uniform State Laws and the American Law Institute occasionally revises the UCC to address changing needs.

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