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Understanding the Uniform Commercial Code
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Flashcards
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Article 1 - General Provisions
Defines general terms and principles applicable across the UCC.
Article 4 - Bank Deposits and Collections
Dictates the process of handling checks and other items by banks and the collection process.
Scope and Applicability of UCC
Determines the types of transactions and parties the UCC applies to.
Article 2 - Sales
Governs the sale of goods and outlines the rights and obligations of buyers and sellers.
Article 4A - Funds Transfers
Addresses the rights, responsibilities, and liabilities when electronic funds are transferred between banks.
Article 5 - Letters of Credit
Details the use and function of letters of credit, primarily in international trade transactions.
Article 7 - Warehouse Receipts, Bills of Lading, and Other Documents of Title
Regulates the storage and transportation of goods, including the legal documents used.
Article 6 - Bulk Sales
Deals with the sale of all or a substantial part of the inventory of a business.
Article 2A - Leases
Regulates the leasing of goods and clarifies the interests of lessees and lessors.
Article 3 - Negotiable Instruments
Covers negotiable instruments including checks, notes, and drafts, and their transfer and enforcement.
Article 8 - Investment Securities
Pertains to the purchase and sale of securities and financial assets.
Uniformity and Flexibility of UCC
Designed to harmonize the law of sales and other commercial transactions across states, but allows for state-specific variations.
Article 9 - Secured Transactions
Addresses the attachment, perfection, and enforcement of security interests in personal property.
UCC and Contract Formation
Modifies the common law contract formation principles for the sale of goods.
UCC and Good Faith Requirement
Requires parties to act with honesty in fact and observance of reasonable commercial standards of fair dealing.
Goods Definition under UCC
Defines 'goods' as all things movable at the time of identification to the contract for sale.
UCC and Commercial Reasonableness
Sets standards for what constitutes reasonable behavior and practices in commercial transactions.
Risk of Loss under UCC
Establishes when the risk of loss passes from the seller to the buyer.
UCC's Impact on Warranty Law
Provides specific rules for express and implied warranties in the sale of goods.
Remedies in UCC
Outlines available remedies for parties suffering losses due to breach of contract.
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