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UCC and UCITA

Before the UCC and the UCITA, one of the first and most significant attempts by the U.S government to promote uniformity in commercial laws from state to state was the Interstate Commercial Act of 1887. This Act was aimed at the regulation of railroads. It was launched to enable railroads to pervade state boundaries.

Based on the provided information about UCC and UCITA, I would say that the major difference between Article 2 of UCC and UCITA is that UCC is concerned with uniformity of language in contracts taken in different states. This is to mean that, it is thought to create a condition where one can enter into contractual agreements without facing restrictions from the state law. In some instances, UCITA resembles Article 2 for example in the sale of goods. However, it has some differences that distinguish it from UCC. For example, for the first time, UCITA established incorporation and informational content, for computer information and also disguised service contracts of merchantability and robustness. The issues addressed by UCITA concerns intellectual property which is far beyond the coverage of UCC (National Conference of Commissioners on Uniform State Laws, 2001).

There is a legal distinction between licensing a product and selling it. The latter refers to the authorized act of buying or selling property rights for the production of commodities by use of explicitly copyrighted chattels. It is a legal activity which bestows upon the discoverer the right to produce and sell the licensed product. On the other hand, selling is the act of exchange of a tangible good such as an asset for money. The seller receives money while the buyer gets possession of the good in question.

I think drafters of UCITA decided to propose it as a separate and discrete uniform act because UCC did not deal with intellectual property issues which needed to be included in the law. Also, the current law addresses only the tangible products but UCITA takes into consideration the intangible aspects associated with computer software (National Conference of Commissioners on Uniform State Laws, 2001).

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