The Uniform Commercial Code (UCC) is a body of laws that govern sales and commercial transactions such as borrowing money, leasing equipment and setting up contracts in the United States of America (U.S.). The UCC was first published in 1952 in the U.S. by a team of several top scholars and was used to regulate sales of personal property and other business-related transactions (Kanning, 2018). The UCC is good for business as it enhances integrity in the U.S. business world.
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The UCC facilitates inter-state commerce by providing the law which encourages the parties from different states to easily interact with each other. Moreover, the UCC promotes national unity as all Americans are unified under one law irrespective of their different cultural values. Notably, the UCC is not a federal law; it is a collection of laws which each of the U.S. states have modeled its business laws. However, the laws are modeled through uniform acts which can be used by all Americans irrespective of the state they live. Therefore, the uniform acts are aimed at establishing national standards which states use to draft their laws. Basically, UCC laws are only applied within the states of the U.S. Nevertheless, there are still similar to UCC laws which are used outside the U.S (Kanning, 2018).
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As far as the laws are concerned, the use of “open terms” by parties as modified by UCC is sensible. The use of “open terms” is sensible because it provides the parties involved with opportunities future negotiations as they transact with each other. In this regard, goods are sold for reasonable prices in the event all parties fail to agree on the price established by the UCC code.
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