Business Law What You Need to Know

Business law is the body of law that governs business and commercial transactions. Also, known as commercial law, it is considered a part of Civil Law, and can be deal with issues in the both the private and public spheres of law. It encompasses anything in which money is transferred from manufacture and shipment of goods to corporate contracts and hiring practices. Although many other countries have adopted civil codes or a unified system regarding Commercial Law, the United States, where it falls under the control of the United States Congress, does not officially have a unified system or code for Commercial Law.

The closest thing to a standard set of rules is the Uniform Commercial Code, which has been adopted parts of all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, and the US Virgin Islands. Until every state adopts the code in full, the Uniform Commercial Code cannot be considered a national system. Until then Congress will solely control interstate trade, while the state police of each state will regulate trade within their respective state. The problem with the Uniform Commercial Code is it is not law itself, but merely suggestions of what states should adopt as Commercial Law. This was done so that states could make changes when adopting its "suggestions" as laws in an attempt to fit it within local regulations. To keep the code in touch with the business community and new American civil laws, there is a panel ranging from private and publicly traded company presidents to Supreme Court Judges. An example of a state choosing to not adopt all of the Uniform Commercial Code is Louisiana, which chose to adopt the document in its entirety, with the exception of Article 2, where it instead decided to continue tradition of using its own Civil Law in regard to the transaction of goods.

The two main facets of Business or Commercial Law are commercial transactions and more specifically the client/vender relationship and the general laws regarding proper practices within a business (ranging from employment to bankruptcy).

In regard to trade, commercial law describes the wide body of laws that govern business transactions. Most of these laws stem from suggestions from the Uniform Commercial Code (UCC). The UCC is divided into nine articles, covering a broad spectrum of issues that arise in commercial transactions. These articles govern all things related to transactions with specific emphasis on the following: sales of goods, leases of goods, negotiable instruments, bank deposits, fund transfers, letters of credit, bulk sales, warehouse receipts, bills of lading, investment Securities, and secured transactions. The one exception to the rule in which trade is regulated by laws stemming from the UCC is the issue of Maritime Trade, which is regulated by Admiral and Maritime Law. Basically Business Law covers everything from the buying of raw goods to the bank deposits after the final product is sold.

The second facet of Business Law, the lawful and proper running of a business, covers all things between transactions. This is with particular emphasis on employment practices and contracts. An example of Business Law regulation in regard to employment is the Occupation Safety and Health Act. This act, as its name implies, encompasses proper working conditions, benefits, and other things regarding the safety and health of employees in a business.

In conclusion, Business Law, in its two facets of running a business legally and making legal transactions, is a body of Civil codes and laws meant to govern commercial transactions and business. Commercial is anything in which money and or goods are transferred or exchanged. Although the United States does not have a Unified Business Law, the Uniform Commercial Code (UCC) has been partially adopted by all states and territories under its jurisdiction.