Question

3. You own a car towing business and car repair shop. Your business includes three tow trucks, and numerous hydraulics and lots of tools and car parts for working on cars. You do not own the real property or buildings in which you run the business, however, you have a five-year lease for the land and buildings. You have a large following in the community and have established lots of good will for your reputable business which makes significant yearly profits. After many years of running the business, you decide it is time to sell and enter semi-retirement. Will this sale be covered by common law or the UCC? What test will the court use to make this decision? Explain and support your answer.

Answer 1

As far this sale is concerned , the towing business and the repair shop sale will fall under the UCC LAW.

Since the important fact that is mentioned in the above case is the property i.e the building or real estate where the business is conducted is not owned but rather leased for a period of time which means while deciding to sell the business the property will be taken back and not sold. Thus UCC will assist the owner in selling his business with the proper terms for doing justice with the owner of the property through letting the new owner of business either follow the same trend or finding any other alternative.

The uniform commercial code is basically a set of legal norms , values and the conduct that is applicable to the legally owned or borrowed property and its business dealings.

It provides with the strict laws which needs to be adhered in order to involve in any sought dealing or legal agreement with the parties to ensure the decision taken is in accordance and in favour of all and not the one.

The test that court will use to make this decision can be well understood through comparing the suitability and reliability of both common as well as UCC law:

UCC consists of various kinds of laws , rules and regulations which help in deciding discharge of a contract or the basis of an agreement while common law involves civil cases and more of services nature.

UCC governs the commercial legal dealings of business while the common law is involved in governing of transactions based on contracts such as the intangible property, services or real estate.

Moreover UCC also involves the cases of regulating the property on lease by making an arrangement which will satisfy and suffice bounty.

Further UCC must be taken as a priority by law as the case of selling the business is of not ultimate property ownership nature thus resulting in give and take, but of give and take along with the counterpart contract with new business owner or providing back the space occupied by business being sold.

Thus UCC can better suit in evaluation and analysis of case and coming at a favourable conclusion.

Thankyou

Hope i explained well.

Good luck and God bless.

Rate if satisfied.

Remember in prayers.

Sorry for any typing mistake