When a court resolves a particular dispute, the record of this decision is case law, which may be used as authority in a future case.
In future disputes, litigants may argue that their case is similar to a prior case and that the prior case law should be followed. Covers letters of credit issued by banks, usually used by business people to guarantee payment of obligations. Concerns the "bulk transfer" of all of a business’ inventory.
Most state legislatures also add a state comment describing how the new Uniform Commercial Code changed the law in that state. This would promote interstate commerce, create more comfort and security for interstate business transactions, increase competition and lower costs.
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Business people cannot assume, therefore, that the law will be exactly the same in each state.
Nonetheless, the UCC has facilitated much greater uniformity of commercial laws.
Often, to resolve a dispute, a court must interpret the "statutes" or codes created by the legislature. Article 7: Warehouse receipts, Bills of Lading and other documents of title. Covers security interests in all types of personal property, including accounts receivable, equipment and inventory. The UCC was intended as a Uniform Model Code that might be adopted by every state legislature.
It is often difficult to determine how a statute or code should be applied to a particular fact situation. Covers these documents used in Article 8: Investment Securities. Prior to the UCC, each state legislature created its own commercial transaction code. As the nation’s economy matured, interstate commerce became increasingly important.
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Uniform Commercial Code Article II, Section 305 (2-305), for example, is Virginia Code 8.2-305, New York Code Section 2-305 and Pennsylvania Code Section 2305.
Keep in mind that the UCC law can vary from state to state.
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