This compilation of standardized laws governs commercial transactions across the United States, providing a consistent framework for businesses engaged in buying and selling goods, borrowing money, and securing loans. A common example of its application is in secured transactions, where a lender takes an interest in specific assets of a borrower to guarantee loan repayment. This codified system helps clarify the rights and obligations of both lenders and borrowers.
Promoting stability and predictability in commercial dealings, this legal framework facilitates interstate commerce by reducing legal complexities and uncertainties. Adopted by all states (except Louisiana, which has adopted portions), it provides a uniform approach, minimizing conflicts arising from differing state laws. This common legal language has been instrumental in the growth of national and international trade since its mid-20th-century origins.