More often, it is common that ever country of state has an authority that enacts its laws. For instance, in the United States, the federal laws may be equally applied to all states. However, there are state laws that are only applicable to the matters within the state's jurisdiction. With such a case, some matters such as commercial transaction which may be beyond the bounders of one country require uniformity. Uniform Commercial Code (UCC) is a law that “mans” both private and commercial transactions for the leasing and sale of goods. This law is developed out of the common of both United States and England.
Selling computers via the online market is the business proposal at hand. Thus, the major area of focus in the UCC will include Article 2 and 9 which covers the sales of goods and secured transactions respectively. Further, since the online market does not have physical boundaries, to a larger extent, making online sales is a form of international trading. Therefore, there is the importance of reviewing the elements of the convention of Internal Sale of Goods. The transactions to be conducted under this business meets the requirement of the UCC Article 2 in a number of ways. Sales of goods involve “goods” which are items that can be both moved and identifiable at the time of sale. A computer and the ownership can be transferred and moved at the time of purchase. The concept of making sales across the borders makes the CISG applicable in this business of selling laptops. Therefore, the presence of the CISG in this market enhances certainty of safe trading deals and also decreases the transaction costs. However, there must be a structural source of these laws. If the parties in the sale of goods contract are within the United States, the UCC applies. Similarly, if the parties are beyond US borders and involve the merchants, the reliable source of the sale of goods law should apply to CISG. The major reason is that different transaction context requires a set of rules.
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UCC Article 9 covers the secured transactions. In simple terms, this article covers transactions involving service contracts which tends to serve the interest of the creditor in a debtor’s personal property. In the business of selling computer online, customers may be receiving this product on credit. The purpose of Article 9 is to perfect the security interest of the transaction either by filling the financing statement (UCC-1 Form), by control or by possession. This article can only be lender void in cases where the debtor files in the court for a relief.
Although the nature of this business falls under the sales of good which is Article 2 of UCC and dealing with tangible goods, a security interest can also be created. While conducting online marketing, the "perfect" means of creating a security interest is through taking an insurance policy that is covering the credit risk. With this, the transaction is secured by the provision of Article 9 and at the same time, the risk has been transferred to a third party by buying a policy which is an intangible item. Alternatively, through the “order of relief” after filing a bankruptcy petition.
In general, Article 9 of the UCC contains the priority rule. This means that the security interest between the debtor and the secured party is enforceable without regard to perfection provided that it has been attached as a collateral. Therefore, there can be no meaningful contest for security interest among the competing secured parties. One of the best methods of perfecting a security interest is by adopting a "lien creditor.” Being such kind of a creditor one may obtain the lien by litigation and through execution. With this, my business taking the position of a lien creditor benefits from the perfection of a non-purchase money security interest.
