Summary of the material contained in the recordings.

Summary
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April 29, 2020
Learning from the lesson, to reiterate, the Uniform Commercial Code (or “the Code”) has been a long-running aggregation of statutes and rules, mostly concerning sales and commercial transactions. Since its conception in the 1950s, the majority of the federal states have adopted the resolution. However, given the federal system in the US, how good is the Code when each State has their own rendition/interpretation of the statutes included? Is having a Uniform Act like the UCC helpful in otherwise a diverse experience in the commercial space by the various States? To help us understand and look at the problem, surveys have existed in hopes to gather opinions, suggestions, and revisions (Kennedy, 1974). These surveys ought to respond to the issues (both existing and those which are possible).
Before diving into the specifics of the problems encountered by the UCC since its inception, we ought to look at the right side first. According to Rasmussen (2002), the UCC has enjoyed a pretty much good status, garnering a large number of supporters and lobbyists. The UCC was even dubbed as one of the champions, if not the best, in the history of law-making, with its goal of uniformity across the states. However, the question of the viability of the statutes and rules under the Uniform Commercial Code foreshadows its very foundational purpose. Looking ahead since its inception, the possibility of problems arising has been recognized (Rheinstein, 1951; Kennedy, 1974).
So, what exactly is Uniform Commercial Code? Basing on what we learned from the recorded lessons, it is composed of articles that helped establish the “decorum” in doing business. Nowadays, doing business is an integral part of our daily lives. Want to build a house? Cases are you need a loan from a bank to help in making your dream house. Same situation with buying a car financed by a mortgage. Under the UCC, secured contracts are guaranteed. Be it engaging in loans or selling of goods, both businesses and the consumers can secure contracts, and, as of today, they are guaranteed to be upheld in every State the same way, as permitted by the state jurisdiction. However, it should be noted that not all of the sections in the Uniform Commercial Code is accepted or enacted by the states. In fact, two most of the heavily amended parts are Articles 2 and 9.
However, the desired uniformity has not been an easy path. Conflicts in the laws under the Uniform Commercial Code are likely to happen because of the fact that differences in the interpretation of the statutes by different states are there. For example, amendments to the sections of the UCC (see the last sentence in the paragraph above) were done because, simply, each State has its own interpretation and use of the statutes. This where we go back to the importance of the surveys conducted. The components of the UCC, in the road to enacting it as statutory, wanted to establish one underlying assumption; federal amendments and enactment of the UCC are essential for it is received and counter the problem of non-uniform enactment. More so, surveys have existed to support the goal.
First and foremost, under the Universal Commercial Code is the assumption that the subject matter on “commercial transactions” has varying consequences (Goodrich, 1953):
“Business affair may involve a contract for sale, a sale, the acceptance of a cheque or draft, the giving of security. It may involve the issuing of letters of credit, of a bank collection, and so on.” (pp. 187-188)
Thus, the goal was to be able to come up with integrated commercial transaction rules and to apply it to the present and future problems. To accomplish such feat, surveys were and had to be undertaken. These surveys conducted consultations with several people which include merchants, bankers, and several others. Business problems where established, and outputs from these people were taken into consideration. Overall, this was an effort for an all-encompassing statute yet, with the goal of specificity.
Because of the combined efforts of several components, the Uniform Commercial Code was born with its 9 Articles (Mentschikoff, 1964). The articles deal with the “laws on sales, negotiable instruments, bank deposits and collections, letters of credit, bulk sales, documents of title, transfer, and registration of investment securities, and secured transactions involving all kinds of movable” (p. 167). Under the UCC, there are underlying concepts, all of which are all noteworthy and recurring all throughout. These are good faith, commercial reasonableness, and commercial practices (which point out the agreement between the parties, their customs, and usage). These...