Concept Review: It is important for businesses and organizations that purchase products to be aware of which laws govern their purchases

Concept Review:

It is important for businesses and organizations that purchase products to be aware of which laws govern their purchases. Furthermore, it is important to understand which laws govern these purchases primarily because the laws can differ, especially with sales contracts. Specifically, three sources of laws that interpret sales contracts exist: state common law, the Uniform Commercial Code, and state statutory law. The Uniform Commercial Code is a uniform, or model, law that states have adopted to govern contracts.

Three Cases:

1. A rapper wishes to purchase the rights of a copyrighted song from another musician in the sale of the copyrighted material.
2. Bob the farmer enters into a sale contract to sell his annual corn crop to a local grain distributor. Bob sells the corn when the grain is still growing in his field.
3. For her eighteenth birthday, Joanna receives a set of diamond stud earrings as a gift from her boyfriend, Adam, and his family.

Read the above three cases. Which, if any, of the above contracts are governed by the common law, and which, if any, of the above contracts are governed by the Uniform Commercial Code (UCC)? Why? As part of your answer, please define the UCC and the common law. Finally, please answer the following question: Why does a business law student need to know about the UCC?