The Affects of the Universal Commercial Code Research Paper

The Affects of the Universal Commercial Code - Research Paper Example In early 1950s, business transactions were handled differently and ineffective across United States. The purchase and sale of goods among various states drew confusion when legal matters regarding business arose. And, therefore, there was a need to get a policy to streamline interstate business issues. Adoption of the code as remained free of choice among states and each state has the option of adopting or rejecting this law (Liuzzo, 2010). That is, only if the state government adopts the UCC that the law becomes the state’s statutory laws. Note that, the state legislature may rewrite part of the law or adopt it as originally edited. (Miller, n.d.). The Uniform Commercial Code (UCC) is arguably the most significant development of the American Law, which offers comprehensive ways of addressing issues of commercial business. The drafts and text of the code are written by commercial law experts and submitted to the Uniform Law commissioners in collaboration with American Law institute for approval. The approving team is comprised of Attorneys qualified to Practice law, federal and state judges, and university Law professors across the United States. They then, meet and decide whether to endorse the drafts or forward them back to experts for more revision. More often such revisions create many drafts but one has to be adopted, and the agents recommend that the states adopt it. The system was developed to address two central issues. First was to harmonize varied approaches by state laws that made interstate business transactions difficulty. Secondly was to improve the management of legal and contractual requirements of operating business. The code has nine articles, each with provisions that relate to the particular area of commercial law and therefore, the conduct of business in different states needed to comply with the UCC