What does the Uniform Commercial Code primarily govern?

The Uniform Commercial Code (UCC) primarily governs transactions involving personal property, which includes a wide range of commercial activities such as sales of goods, leases, negotiable instruments, and secured transactions. The UCC provides a standardized framework for these transactions, promoting fairness and clarity in commercial practices across different jurisdictions. This is vital for businesses engaged in trade, as it helps reduce disputes and misunderstandings between parties by establishing consistent rules and regulations.

While banking regulations, real estate transactions, and mortgage loan origination involve significant legal frameworks, they are typically covered by different sets of laws and regulations outside the scope of the UCC. Banking regulations tend to focus on financial institutions and industry standards, real estate transactions are often governed by property law, and mortgage loan origination is addressed through specific lending laws. The focus of the UCC on personal property transactions is what makes it a critical aspect of commercial law in the United States.