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CH 5] Business 101 5-11

The Uniform Commercial Code (UCC) was drafted in 1952 and are a set of statutes
designed to simplify commerce by eliminating differences among the state laws that govern
business. The UCC has been adopted in every state except Louisiana, which has adopted Uniform Commercial Code
only about half of the code. (UCC)
Unfortunately, no legal system is permanent. Laws are characteristic of the people’s Comprehensive statutory
beliefs, and both courts and legislatures are aware of this fact. Laws (statutes) are laws designed to eliminate
differences between state
constantly added, repealed, or modified to meet the requirements of society and laws governing commerce.
government. To illustrate, President William J. Clinton, in his State of the Union address of
1996 began to target “those who make and market cigarettes,” by stating that “[o]ur
administration has taken steps to stop the massive marketing campaigns that appeal to our
children. We are simply saying: Market your products to adults, if you wish, but draw the
line on children.”
Congress in 1997 put the manufacture and advertising of tobacco products under the
preview of the Federal Drug Administration (FDA). However, a federal judge in 1997
removed the overview of advertising from the FDA.
Mr. Clinton continued his cigarette marketing theme with each State of the Union
address through 1999 when the President asked congress to financially attack tobacco
companies: “As everyone knows, our children are targets of a massive media campaign to
hook them on cigarettes. Now, I ask this Congress to resist the tobacco lobby, to reaffirm
the FDA's authority to protect our children from tobacco and to hold tobacco companies
accountable, while protecting tobacco farmers.”
“Smoking has cost taxpayers hundreds of billions of dollars under Medicare and other
programs . . . Taxpayers shouldn't pay for the cost of lung cancer, emphysema, and other
smoking-related illnesses, the tobacco companies should.”
“So tonight I announce that the Justice Department is preparing a litigation plan to
take the tobacco companies to court and with the funds we recover to strengthen 5
Medicare (emphasis added).”

Illustration 5.1 Example of a Federal Law Affecting a Specific Industry

SURGEON GENERAL’S WARNING: Cigarette
Smoke Contains Carbon Monoxide

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