The Uniform Commercial Code (UCC), a comprehensive code addressing most aspects of commercial law, is generally viewed as one of the most important developments in American law. The UCC text and draft revisions are written by experts in commercial law and submitted as drafts for approval to the National Conference of Commissioners on Uniform State Laws (now referred to as the Uniform Law Commissioners), in collaboration with the American Law Institute.
(Uniform Commercial Code, (n.d.). Attorneys, which are the Commissioners include federal and state judges also including law professors and legislators, are able to practice law throughout the U.S. These organizations decide and meet on whether to send drafts back for revision or if they should endorse them.
Most of the time it does not involve only one revision but after deciding to endorse them the states are forced to adopt these rules by the Uniform Law Commissioners. Since the Uniform Commercial Code, which is a model code, does not always have jurisdiction in a legal effect unless the legislatures as statutes enact them. “Domestic transaction” means a transaction other than an international transaction. “International transaction” means a transaction that bears a reasonablerelation to a country other than the United States. (UNIFORM COMMERCIAL CODE, (n.d).
Computers and technology has grown rapidly over the past fifteen years, and this has enhanced the growth of financial markets globally which has led to around the clock trading in foreign exchange, financial instruments, and securities. Services and goods in international trade have also grown in speed and volume. Since the growth and change in technology settlements of payments in these transactions has sped up how fast they can receive these payments. Because of this money is being moved around the world faster than ever before. The economic significance of national boundaries to large corporations and financial institutions is being reduced.
These trends in transactions, payments, and transnational operation of corporations have led to commercial pressure for greater certainty and uniformity in the law governing international transactions. (The Effect of Uniform Commercial Code, (n.d.). In these international transactions you have to worry about more jurisdiction laws taking place. Rules of private international laws will be the deciding factor into which jurisdiction laws that will be enforced. When it comes to commercial interests many are against this grey area of unknown and look for certainty in which legal rules in these international transactions to reduce and correctly measure the legal risks they may be taking.
They also are pushing for the unvarying of these rules throughout jurisdictions in order to lower compliance costs. Because of the pressure for more uniformity and certainty in international transactions and the legal rules they are governed by, the private international law rules are being added to
too bring together the legal rules at hand in international conventions to be foreseen across the nations. There has been little to no attention paid to what these international laws represent and I think and the United States should make it a part of their laws. With this being said pressure is rising on responsibilities of state and federal governments to fit these international developments and should deserve more attention than what they are receiving.
The Uniform Commercial Code will reach a point where the process will need to be revised and when it takes place it will put these processes to the test. Because of failure in the enactment process there has been a lot of doubt on the uniform law process and its vitality, and this has caused even more doubt that changes can be made on an international level.
If the United States ratified all existing conventions and implemented those treaties on a federal level, a good portion of the Uniform Commercial Code would be preempted (Amelia H. Boss, (n.d.) The Future of the Uniform Commercial Code Process in an Increasingly International World), and if this happened the Uniform Commercial Code as a whole would be brought into serious questioning.
ReferencesUniform Commercial Code, (n.d.) Retrieved from http://law.duke.edu UNIFORM COMMERCIAL CODE, (n.d) Retrieved from http://www.law.cornell.edu The Effect of Uniform Commercial Code, (n.d.) Retrieved from http://digitalcommons.lmu.edu
Amelia H. Boss, (n.d.) The Future of the Uniform Commercial Code Process in an Increasingly International World