Business

United States government promoted uniformity in commercial laws from State to State even before formulation of Uniform Computer Information Transaction Act (UCITA) and Uniform Commercial Code (UCC). The government was able to regulate commerce by taking in to considerations of demands and supplies. The control was applicable to the states which were trading with each other which enforced the goods which were to be traded on and the quantity traded to prevent over or under supply of the commodity in the market.
The major differences between Uniform Commercial Code and the Uniform Computer Information are that Uniform Commercial Code is much broad and has standardized laws which govern financial contracts, negotiable instruments, bank collection and deposits, how to deal with credit letters, documents and warehouse receipts and how to deal with secured loans (Anderson, 2003). While, Uniform Computer Information Transactions Act are regulations which are narrowed down to computational transactions such as transactions in computer, online accessibility and software licensing (Virginia, 2000).
The legal distinction between selling a product and licensing it, when selling of a product the owner gives away all the rights of ownership to the buyer in terms of deign, usage and all attributes which the product has. While, licensing the person licensing it allows the person to pay for the license and use products or services fully while its ownership such as the design and concepts of the products or services are owned by the licensee.
The drafters decided to propose UCITA as distinct and separate uniform act despite of provisions that it was a modification of Article 2 of UCC. The drafters would have emphasized on UCITA being distinct so that it would be accorded independency which would enforce its implementation and be accorded seriousness by the stakeholders who shall be adopting it. Being distinct and separate gives it independence for traders to study and understand it hence implement it successfully because if it was implemented as a modification many people would have ignored it.