Uniform Commercial Code Essay
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Historical Background and Philosophy
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Business laws emanated from the customs and traditions of traders and merchants. The law merchant would be a framework of rules, usages, and customs self-imposed by the merchants to settle the inherent disputes and impart responsibilities among each other. The rules would be set at fairs where merchants would meet to sell and exchange goods as well as settle disputes in courts that were constituted by them. By the wake of 17th century, the Law Merchant had become an established phenomenon, eventually, it would be accepted as part of the common law, and judges would refine them to become the modern law of sales. In the US, this law of sales was different from state to state, a condition that hindered multistate contracts. In the late 19th century, multistate contracts had become rampant, and this made the differences in the Law Merchant more pronounced and troublesome. In this case, there had to be a uniform body of rules regarding commercial transactions (UCC Handbook 79). This need to integrate the laws governing commercial transactions into a uniform body of statutory law would be recognize in the 1940’s, the arrangements thereafter gave birth to a law now popularly known as the Uniform Commercial Code (UCC).
The law has articles and chapters; article 2 of this law is applied to transaction of goods, including every contract involving sale of goods. Under article 2A, the law regards the lease of goods, incorporating any transaction that may create the lease of goods, including subleases. The lease agreement is always the lessee and the lessor’s bargain, as determined by their language and governed by other circumstances, including course of performance, usage of trade, and course of dealing. A lessor sells the right to possess and use goods under lease. While the lessee is the party that acquires the right to use and possession of the products under lease (Anderson 78).