Business laws are often interchangeably used with commercial laws but those are not same. They are two important areas of legal practice. Most importantly and interestingly, both these aspects have several overlapping issues. This reasons why most lawyers who practice either of these will also have skill in other area that focuses on distribution and sales of goods and funding certain transactions.
Business laws are about other areas of businesses, including formation of a company, shareholders rights, mergers and acquisitions and property issues such as leasing a warehouse space or office. A business that manufactures and/or sells products should need guidance from a lawyer who has skill and experience in both areas.
Business Laws
Business law is controlled by federal and state laws. The federal government has regulations over workplace safety, employment laws, environmental protection, stocks and investments. States are entitled to add to the federal laws and enact their own business related laws in other arenas including license requirement imposition for certain professionals as well as setting up rules for establishing and running a legal business.
Commercial Laws
Primarily, commercial laws are regulated by UCC or Uniform Commercial Code. UCC refers to a model set of laws in relation to negotiable instruments, sales and leases of goods and secured transactions. All states have accepted and implemented some forms of the Uniform Commercial Code though each of them has absolute right to modify according to their requirements. Many states have done modifications to the UCC provisions to fit their needs.
Therefore, for any business, it is important to hire an attorney from H1 Law Group, who has in-depth knowledge about the UCC as it has been enacted in the state where you live in.
Terms to Know
UCC – Full form is Uniform Commercial Code. It refers to a uniform law implemented by all states in some forms.
Negotiable Instruments –A document (for example, a check or a note) containing an unconditional promise to pay a specific amount of money on demand and/or at a particular time.
Merger – Unification of two existing companies
Acquisition – Purchasing all or most of another company’s shares to get control over it
Security –Any financial asset (for example, a mortgage), offered to ensure fulfillment of debt obligation
Secured Transaction – A transaction proposed to create security interest in fixtures of a property or personal property
What to Consider When Hiring a Business and Commercial Attorney
Each industry encounters its own distinct business and commercial law disputes. A good attorney, who has experience in dealing with the type of business you own, will be able to offer you more pragmatic advice and a solution to your legal disputes while taking into consideration business ethics as well as industrial practices.
Many entrepreneurs often decide to consult with an attorney when it is too late for the legal counsel to offer much of help. Business owners make efforts to negotiate sales of goods without any knowledge about the legal requirements under the UCC as enacted in the state. Instead of exploring the laws on their own, business owners should hire a commercial law attorney for the contract negotiation process to protect their legal rights.
