19 May 2008

The Trouble With The Uniform Commercial Code

The Uniform Commercial Code (UCC) is not the world's best drafted law, although it has been adopted in all fifty states and has better drafting than many laws. One of the key problems in using it is that, as commercial law professor Gregory E. Maggs explains (immediately preceeding footnote 202 in this article):

Many parts of the UCC are intelligible only if you already know more
or less what they are attempting to say.

In the American legal system, where only a minority of judges have any background in commercial law or practice, and judges are generally assigned to cases at random, this is often a problem that creates considerable uncertainty in American business law.

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