Texas Legal Entities
The Uniform Commercial Code
The Uniform Commercial Code, or UCC, is one of a number of uniform acts that have been created in conjunction with efforts to harmonize the laws concerning sales and other commercial transactions across all 50 states.
Having uniform rules concerning sales is important due to the prevalence of commercial transactions that extend beyond one state. For example, goods may be manufactured in State A, warehoused in State B, sold in State C, and delivered in State D so whose rules should apply becomes a complicated issue. The UCC concerns primarily transactions involving movable property, not real or immovable property (i.e. land).
The UCC is both the longest and most elaborate of the uniform acts. It was originally written in 1952 and is the product of a joint project of the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute (ALI).
The Code is not in itself law as it is the product of private organizations. It is only a recommendation on the laws that individual states should adopt. Once the Code has been enacted in a state by a legislative body, it becomes true law and is codified. When the Code is adopted by a state, it can be adopted verbatim or may be adopted with minor changes deemed necessary. If the changes are not minor, they do not interfere with the goal of uniformity.
The code, in some form, has been enacted by all 50 states as well as in the District of Columbia, the Commonwealth of Puerto Rico, Guam, and the U.S. Virgin Islands.
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