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Another chapter of this book will discuss UCC Article 9 on Secured Transactions. Codes are intended by the legislature to create new law in the targeted subject areas.

These chapters will give you an idea of some of the issues covered by the UCC but should not be relied on to solve any particular problem. The Uniform Commercial Code (UCC) is a "code" or a "collection of statutes." This is the type of law that may be adopted by all U. The other source of law is "case law" or "common law." For centuries, courts have been in the business of resolving disputes.

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Often, to resolve a dispute, a court must interpret the "statutes" or codes created by the legislature. Article 7: Warehouse receipts, Bills of Lading and other documents of title. Covers security interests in all types of personal property, including accounts receivable, equipment and inventory. The UCC was intended as a Uniform Model Code that might be adopted by every state legislature.

It is often difficult to determine how a statute or code should be applied to a particular fact situation. Covers these documents used in Article 8: Investment Securities. Prior to the UCC, each state legislature created its own commercial transaction code. As the nation’s economy matured, interstate commerce became increasingly important.

Also, each state’s court system can reach different results when interpreting the code provisions.

Most state legislatures also add a state comment describing how the new Uniform Commercial Code changed the law in that state. This would promote interstate commerce, create more comfort and security for interstate business transactions, increase competition and lower costs.

These official comments also fill in the gaps in the UCC and help courts, lawyers and business people better understand the UCC. A national conference of lawmakers, lawyers and college professors worked for years studying the various commercial laws of the 50 states, debating the pros and cons of these variations and drafting what they viewed as the best "Uniform Commercial Code." This process has continued for decades.

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