The Uniform Commercial Code (UCC) is an all-inclusive code the addresses various features of commercial law. Moreover, it is perceived as a significant development in American law. Experts in commercial law are involved in drafting and writing the code and approved by the National Conference of Commissioners of Uniform State laws. The UCC is a model code without any legal effect in the jurisdiction. However, the code’s provisions enacted by various legislatures and statutes contain a legal effect in its implementation. The UCC is organized in rules of various transactional areas separately referred to as “article” and arranged systematically in sections that are consecutively numbered.
Do you think that the UCC would directly or indirectly have any effect on international commerce?
The UCC would have a direct effect international commerce. This is because international commerce entails the buying and selling of goods between sovereign countries. In addition, it permits the nations to take advantage of competitive advantages and minimize the cons in other sectors. Therefore, since the UCC applies to most transactions between the buyer and the seller, it thus directly affects the international commerce. In addition, the purchasing professionals in international commerce are required to possess basic knowledge of the UCC. Consequently, the buyers and sellers are also directly affected by the UCC (White & Summers, 2010).
Transactions in international commerce involve the transfer of goods between the participating countries. The UCC codes provide an article that protects the buyers from non-conforming goods. In such cases, the buyer’s damages under the UCC provide possible damages in connection with a seller’s failure to provide compliant goods. For example, under the UCC breach-of-warranty theory, the measure of damages is generally the disparity between the worth of goods accepted in contrast to the value of the right goods. In this case, it is evident that the UCC have a direct effect on international commerce (White & Summers, 2010).
If so, what effect on international or worldwide commerce do you think the UCC might cause?
The effect on worldwide commerce by the UCC includes several adjustments that should be made in international finance in order to accommodate the inclusion of the UCC articles in business. The UCC causes numerous changes in sales activities of the nations involved. Amended article 2 of the code controls the sales contracts made between involved parties for the sale of any goods (Stone & Adams, 2012). Moreover, the parties should also adjust to the fact that the article does not cover transactions that entail any services or real estates. Consequently, the world of commerce makes other rules meant to cover the excluded aspects in the UCC articles.
In addition, the UCC also affects the banking industries with respect to the deposits and collections made. The banking industry is the largest industry in the majority of the thriving economies across the globe. Furthermore, the banking processes between all involved parties and the use of physical checks is crucial in everyday international commerce. The code provides rules …
Posted by: Frederic Granillo