Andrew Bodden, Bambi Mackey, Amanda Moody, Bozwonna Rippy
Brian Seidel, Brian Uminski
November 17, 2014
Week Five Team A Reflection
This week Learning team A will discuss the UCC Article 2 and its commonalities and differences in common law contracts. Again we will discuss our strengths and weaknesses amongst the team to strengthen our knowledge base of the UCC Article 2 involvement in common law contracts.
UCC Article 2
The UCC Article laws are statutory laws or also known as the “Code”, used to create uniformity among merchants within states. Each state chooses what part of the code or the verbatim used in it’s own statutes. Article 2 specifically is only goods that are moveable and the sales of those goods.
According to (Asset Protection Attorneys, 2014), “Common Law governs contractual transactions with real estate, services, insurance, intangible assets and employment” (para 2). An open contract within a common law is a promise to keep the deal open and requires consideration (Asset Protection Attorneys, 2014). Common law has “no comprehensive compilation of legal rules and statutes” (The Robbins Collections, 2014, para 3). It has some statutes but based largely on precedent (The Robbins Collections, 2014). Precedents are judicial decisions that have already been set in other court cases. The precedents are still in the records of the courts and documented in “yearbooks and reports” (The Robbins Collections, 2014, para 3).
According to "Difference Between UCC And Common Law" (n.d.), " The differences between common law and the UCC Article 2 are changes in contracts, in common law this leads to contract rejection or counter offer of the offer. The terms in common law are dictated by quantity, price, and performance time, nature of work and identity of offer.” (Summary). The differences between common law and the UCC Article 2 are changes in contracts, in common law this leads to contract rejection or counter offer of the offer. Additionally, the Statute of Limitation is up to six years in Common Law, where as the UCC is only four years ("Difference Between Ucc And Common Law", n.d.).
The application of UCC Article 2 laws and the sale of goods are commonly used in the accounting field. Invoices are created for goods when a merchant sells items to another merchant, usually with certain terms for payment, interest, quantity and additional terms. Accounts receivables are the accounts that part of a company’s financial statements. The accounting department monitors transactions such as payments on invoices and returned goods crediting customer accounts. An understanding of UCC Article 2 laws can be beneficial to an accountant in working with vendors and other merchant accounts to resolve issues and disputes. While managers or sales departments work with customers regarding disputes of product quality or quantity, the accounting department has an important…