Here is the information:
Before UCC/UCITA federal attempt at uniformity:
- Commerce Clause of Constitution gives federal govt. full control over "interstate commerce" (commerce between the states)
- Interstate Commerce Act of 1887 created Interstate Commerce Commission to regulate interstate commerce
Differences Art.2 vs. UCITA:
- Art. involves sales of tangible goods but UCITA involves sale of computer goods (software, databases, code, etc.) which may or may not be tangible.
- UCITA warranties give consumers fewer rights to return products than Art.2 does
Sale vs lic.:
- a sale gives a buyer all rights of ownership and removes all control over the item or product from the seller. A buyer has the right to use the product in any way, the right to sell the product to others and the right to control how others can use the product, no limits.
- a license provides a buyer only limited rights and the seller of a license retains all rights and can tell the buyer what he can and cannot do with the licensed product or item
Why separate act:
- Art.2 deals with tangible goods but UCITA does not only involve tangible goods
- Different legal rights involved in each sale/purchase
- Different warranty rights and protections
- these make it too difficult to keep these together
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Edited by Jane T (LLC) on 9/17/2010 at 9:09 PM EST