Comparison of The Uniform Commercial Code and UCITA - Essay Example

Business law: Before the UCC and UCITA, what was one of the first, and most significant, of the U.S. government's attempts to promote uniformity in commercial laws from state to state (Hint: think of "commerce" and Constitution).Commerce clause which was founded in article 1,section 8 of the U.S. constitution was the one of the first and most significant attempts of the U.S. government to promote uniformity in commercial laws from state to state. Two key factors in section 8 are: "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes" and "To establish a uniform Rule of Naturalization and uniform Laws on the subject of Bankruptcies throughout the United States".

Based on the information presented above, what do you see as the major differences between Article 2 of the Uniform Commercial Code and UCITAThe National Conference of commissioners on uniform state laws (NCCUSL) on July 29 adopted Uniform Computer Information Transactions Act (UCITA) after revising the proposals again and again. The (UCC) Uniform Commercial Code is intended to promote uniformity in the area of (CIT) Computer Information Transactions.

Here the question arises "What is computer information transactions" "commercial agreements to create, modify, transfer or distribute computer software, multimedia interactive products, computer data and databases [and] Internet and online information" all these things are included in computer information transactions under the model act. The major concern of the NCCUSL is about the lack of clear and consistent rules of this transactions which is expanding rapidly in our national economy.

Most people would avoid this because of the terms and conditions which are valid in one state and not in others therefore increasing the rate of risk in such transactions. Five basic themes underlie many of the provisions of the UCITA. They are the following: 1. Computer information transactions involve licenses, not sales.2. Small companies play a more significant role in the computer information industry than many other industries. 3. Computer information transactions implicate fundamental free speech issues.4. Freedom to contract and practical commercial context of the transactions are important.5. The law should facilitate continued expansion of e-commerce and be technologically neutral.

Model act's language is opposed by several well funded information industries. Many advocates and costumers would like to see a more protected proposal. Because these groups have more sway over legislature so this would result in uniform act which would be different in different states just like the UCC.What is the legal distinction between selling a product and licensing itSell: An agreement by which one of the contracting parties, called the seller, gives a thing and passes the title to it, in exchange for a certain price in current money, to the other party, who is called the buyer or purchaser, who, on his part, agrees to pay such price.

License: A legal agreement granting permission to exercise a specified right or rights to a work, often encompassed in an invoice, or the act of granting same. Many of the provisions in the UCITA were first proposed as a modification to Article 2 of the UCC. Why do you think the drafters decided to propose it as a separate and distinct uniform actThe article 2B of UCC now known as UCITA. Its drafting started in the year 1996 and it was abandoned due to some major issues by many of its members.

As this article of UCC was rejected by a lot of people NCCUSL took it over as a separate proposal which is now called as Uniform Computer Information Transaction Act. UCITA in its present form is the result of a series of amendments (mostly involving exemptions for the motion picture and sound recording industries) adopted in February, 2000. It is presently being considered by the legislatures of most states.References:1. www.gooogle.com2. www.funadvice.com/qlegal-distinction (definitions have been copied from here)3. www.yahoo.com