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Ucc vs. Ucita

In: Business and Management

Submitted By hawaii103783
Words 803
Pages 4
Robyn Spelts
American InterContinental University
BUSN150 Assignment 4
UCC v. UCITA

* Before the UCC and the 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.)
The "Commerce Clause" of the U.S. Constitution was one of the first acts of U.S. government in regulating commerce. It supplies Congress with the sanction to regulate not only business, but any interaction conducted between organizations situated in different States (Gibbons v. Ogden (1824)). This authority encompasses all areas of interstate commerce (radio, telephone, waterways, highways). This also incorporates intrastate handling that has a collective and significant influence on interstate trade (employment, agricultural, and housing prejudice). * Based on the information presented above, what do you see as the major differences between Article 2 of the Uniform Commercial Code and UCITA?
Article 2 of the UCC is designed to expedite the sale, consignment and distribution of tangible products. A tangible product is one in which you can touch or feel (Robyn Spelts. June 24, 2011). The purpose of Article 2 is to bring sales law closer to the needs and practices of businessmen.
The UCITA is anticipated to simplify the authorizing of intangible computer-related property, with a prominence on allowing proprietors of software the capability to preserve domination over their possessions eternally. An intangible product (that still also counts as a product in the business marketing mix) is one that cannot be touched. Examples of this are commercials, repair work, and tax preparation. Other examples of products are places and ideas (Robyn Spelts. June 24, 2011). The concern comes from the overwhelming power of the software designer and the lack of recourse for the public and the consumer. Simply by opening a new package of software, consumers can surrender the right for refunds and even the right to criticize the product. Not even used-car dealers can come close to getting away with that. (UCITA.com (n.d.)) * What is the legal distinction between selling a product and licensing it?
When you license a product, you are giving permission to a purchaser to use your product, without actually selling the product to them. An example of this is when you lease a vehicle. Generally, vehicle leases are a contract to use the vehicle for a year, making monthly payments, for which you will return the vehicle when the lease is up. Generally, software products are licensed. You are giving permission to patrons to use the software product, but are not actually selling the entire product outright.
When you sell a product, you sell the product and the rights to the product. Selling a product, as in a retail sale, transfers full rights of use to the consumer for whatever purpose it was intended for. Examples of this are normal, everyday household items, such as food products and clothing. * 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 act?
The UCITA is tremendously debatable. It impedes with the U.S. Copyright Act by essentially restraining what is branded as the "First Sale Doctrine," which authorizes a procurer of a duplicate of the innovative handiwork of another, the privilege to resell that copy. To this point, the UCITA could be unconstitutional.

References 1. Commerce Clause. (2011, August 1). In Wikipedia, The Free Encyclopedia. Retrieved August 14, 2011, from http://en.wikipedia.org/w/index.php?title=Commerce_Clause&oldid=442455893 2. Gibbons v. Ogden. (2011, August 12). In Wikipedia, The Free Encyclopedia. Retrieved August 14, 2011, from http://en.wikipedia.org/w/index.php?title=Gibbons_v._Ogden&oldid=444404888 3. Gusman, Robert C. (October 10, 1967). Article 2 of The U.C.C. and Government Procurement: Selected Areas of Discussion. Boston College Industrial and Commercial Law Review. Volume IX (Number 1), 1-22 4. Spelts, Robyn. (June 24, 2011). Price, Product, Place, and Promotion. The 4 P’s of Marketing: The Secrets to Great Business Marketing. Page 2 5. How Bad is UCITA? (n.d.). AFFECT/Americans for Fair Electronic Commerce Transactions. Retrieved August 13th, 2011 from http://www.ucita.com/what_faq.html 6. Uniform Computer Information Transactions Act. (2011, February 1). In Wikipedia, The Free Encyclopedia. Retrieved August 14, 2011, from http://en.wikipedia.org/w/index.php?title=Uniform_Computer_Information_Transactions_Act&oldid=411347499 7. UCC. (2011, June 26). In Wikipedia, The Free Encyclopedia. Retrieved August 14, 2011, from http://en.wikipedia.org/w/index.php?title=UCC&oldid=436323435 8. First Sale Doctrine. (2004, September 17). In Wikipedia, The Free Encyclopedia. Retrieved August 14, 2011, from http://en.wikipedia.org/w/index.php?title=First_Sale_Doctrine&oldid=16229721

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