As you know, the Uniform Commercial Code (the “UCC”) governs most commercial transactions including sales of goods, personal property leases, negotiable instruments, bank deposits and collections, letters of credit, and secured transactions. It has been adopted on a nearly uniform basis by all 50 states and is regarded as one of the most significant modern legal developments. The drafting and revision process, by which a model code is created and circulated to the states for review and enactment as state law, is governed by the American Law Institute (ALI) and the Uniform Law Commission (ULC).
The ALI and ULC have recently formed a joint study committee to examine whether there is a need to amend the UCC to address various emerging technologies, such as artificial intelligence, distributed ledgers (block chains), and virtual currency (bitcoins). The Commercial Transactions Committee (the “CTC”) has been requested to gather and submit views on the UCC’s current deficiencies relative to these technological developments and proposed solutions, and it welcomes input from other sections, committees, business and consumer groups, governmental agencies, academics, and other interested persons.
Examples include whether current provisions adequately address electronic documents, including the concept of “control” of electronic documents of title (implicating block chains), should there be special rules for security interests in virtual currency, or do the current provisions, together with the federal Electronic Signatures in Global and National Commerce Act, and the Uniform Electronic Transactions Act, adequately address issues that might arise in “smart contracting” for the sale of goods? Responses are in no way limited by these examples or the specific technologies above.
This is an important opportunity to influence and shape legislation affecting almost all of our practices and clients. The deadline for the CTC’s submission of this information is June 28th, so please submit your responses by June 20th. Please address all questions, comments and responses to the CTC through:
Walter K. Oetzell | Walter K.
12100 Wilshire Blvd, Eighth Floor | Los Angeles, CA 90025
Direct 310.801.3139| firstname.lastname@example.org
Email and telephone preferred.
This e-bulletin was prepared by Walter K. Oetzell, Walter K. Oetzell, APC email@example.com.