Future Business Leaders of America (FBLA) Business Law Practice Exam

Which body of law governs various types of business transactions?

1. Uniform Commercial Code (UCC)

2. Common Law

3. Administrative Law

4. International Law

The correct answer is: Uniform Commercial Code (UCC)

The Uniform Commercial Code (UCC) is the correct answer because it is a comprehensive set of laws that standardizes and governs various types of business transactions in the United States. The UCC addresses commercial transactions, including the sale of goods, leases, negotiable instruments, and secured transactions. By providing a consistent legal framework, the UCC facilitates smoother commerce by minimizing disputes and misunderstandings in business dealings. Each section of the UCC focuses on a specific area of commercial law, making it easier for businesses to engage in transactions across state lines. This is critical because businesses often operate in multiple jurisdictions, and having a uniform set of rules helps to create predictability and reliability in commercial practices. In contrast, common law primarily deals with legal principles derived from court decisions and precedents rather than comprehensive statutes governing business transactions, making it less focused on the specific nature of commercial dealings. Administrative law pertains to regulations created by governmental agencies and is more concerned with the operation and rules enforced by those agencies rather than the broader scope of business transactions. International law governs relations between nations and international agreements, but it does not specifically address domestic business transactions within a country. Therefore, the UCC is the appropriate body of law that directly governs various types of business transactions, making