“Made
in the USA” is no longer a nostalgic phrase from the 50s; U.S. manufacturing
has been making a steady comeback in the last few years. American manufacturing’s
“re-shoring” to stateside has not only created increased sales of good ole
American goods in our home-front but it has also influenced patriotism amongst
consumers and manufacturers alike. A growing number of suppliers, vendors and
retailers have been relying on their fellow Americans for goods all around the
States.
Conducting business transactions outside of
one’s state has become popular, as well as preferable as a result of the
growing costs of importing. Conducting business out of your state can include
the need for contractual agreements for selling and purchasing goods, leasing
equipment or even borrowing money from out of state lenders.
So
what regulates such contractual agreements? The Uniform Commercial Code of
course. The UCC is not a federal law; it
is the product of the National Conference of Commissioners on Uniform State
Laws and the American Law Institute. Based on the suggested laws presented by
these two institutions, all 50 states, including U.S. territories, have adopted
either partially or entirely, the UCC into their statutes.
The
UCC consists of uniform codes that “spell-out” the regulations that govern over
contractual agreements for sales of goods, lease of goods, transferring of
funds, letters of credit and more. Although each state’s adoption of the
proposed UCC may differ in some verbal contexts, its overall use is compliance
of the law in regards to business and commercial transactions between
businesses in differing states.
One
of the most applicable articles in the UCC is Article 2 which governs the sale
of goods. For small business, the UCC may also come into play when borrowing
money from out of state lenders or when negotiating liens. Other important
articles include ownership of securities governed by Article 8; regulations for
secured transactions established by Article 9 and bulk transfers and bulk sale
regulations in Article 6.
The
ongoing increase of U.S. manufacturing on our own soil will undoubtedly create
business opportunities and partnerships between you and your fellow American.
Be prepared! It is essential and highly
important to be aware of the UCC provisions governing each state in which you
conduct a business or commercial transaction.
This
content is intended for educational purposes only.
KAASS LAW is authorized to practice law in California. The
above content is intended for California residents only. This content provides
only general information which may or may not reflect current legal
developments. KAASS LAW expressly disclaims all liability in respect to actions
taken or not taken based on any of the contents of this website. The above
content DOES NOT create an attorney-client relationship. KAASS LAW does not
represent you unless you have expressly retained KAASS LAW in person at the
KAASS LAW office.
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