What is the primary focus of Uniform Commercial Code Article 3?

The primary focus of Uniform Commercial Code Article 3 is to define and regulate negotiable instruments, which include checks and promissory notes. This article outlines the characteristics that make an instrument negotiable, such as the requirements for signatures, endorsements, and the transferability of these instruments. By doing so, it provides a legal framework that facilitates the use of negotiable instruments in commerce, ensuring that they can be easily bought, sold, or otherwise transferred between parties.

Understanding the intricacies of negotiable checks and endorsements allows entities and individuals to engage in secure and efficient transactions. This knowledge helps mitigate risks associated with payment systems and enhances confidence in the use of checks as a mode of payment. While other options may pertain to different aspects of payment transactions or finance, none address the specific regulations regarding negotiable instruments as comprehensively as the definition and framework presented in Article 3.