Paper Summary:

This paper first explains that, with Uniform Commercial Code (UCC), which is not a law itself unless enacted by the states as it was developed by private organizations, and the Uniform Computer Information Transaction Act (UCITA), the U.S. government has attempted to promote state-to-state uniformity in its commercial laws. The paper then goes on to relate the major differences between Article 2 of the UCC and UCITA and the legal distinction between selling and licensing a product. The paper indicates the reasons why UCITA became a distinct uniform act instead of a modification to UCC.

Table of Contents:
US Government Attempts to Promote State to State Uniformity in Commercial Laws
Major Differences between Article 2 of the UCC and UCITA
Legal Distinction between Selling and Licensing a Product
Why UCITA Became Distinct Uniform Act Instead of Modification to UCC

From the Paper:

"With the intent of bringing the same uniformity of rules to computer transactions as the UCC does for the sale of goods, the NCCUSL and "ALI proposed a modification to Article 2, of the UCC, that would include these provisions. Originally proposed and drafted in 1999, as 'Article 2B' of the UCC, it was withdrawn in 2002 after the ALI retracted its support due to numerous problems with the final draft. Any revisions to the UCC must be agreed to by both the NCCUSL and ALI. When the ALI would not grant its assent, the NCCUSL responded by renaming Article 2B the Uniform Computer Information Transaction Act [UCITA] and tried to have it passed as law."

Sample of Sources Used:

• AFFECT. (2006). Frequently Asked Questions, Myths and Facts. Americans for free electronic commerce transactions. Retrieved on January 23, 2006, from http://www.ucita.com/index.html
• Cheeseman, H.R. (2005). Formation of Sales and Lease Contracts, Performance of Sales and Lease Contracts, E-Commerce, Domain Names and Internet Law, In Contemporary Business and Online Commercial Law. (Chaps. 14, 15 & 17). New Jersey: Pearson Prentice Hall.
• Great American Court Cases, Gale (1999). Consumer Protection. Retrieved on January 23, 2006, from xreferplus. http://xreferplus.com/entry.jsp?xrefid=5016011secid=3
• Livingston, M. (2005). Out with the Old, In with the New? Articles 2 and 2A of the Uniform Commercial Code. DePaul Business and Commercial Law Journal Symposium. Retrieved on January 24, 2006, from http://search.epnet.com/login.aspx?direct=true&db=bsh&an=19211619&loginpage= Login.asp
• Webster's New World(TM) Computer Dictionary. (2003). Software license. Retrieved on January 23, 2006, from xreferplus. http://xreferplus.com/entry/3486250

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