Commercial Law and Legal Definition
Commercial law governs the broad areas of business, trade, commerce, sales, and consumer transactions. Commercial law covers numerous issues of law, such as contracts, banking, bankruptcy, credit transactions, secured transactions, real estate and others. There are numerous laws at the state and federal level governing commercial law practices.
The Uniform Commercial Code, which has been adopted in some form in nearly every state, governs numerous areas of commercial law. Currently it is divided into thirteen Articles:
- Article 1 (General Provisions)
- Article 2 (Sales)
- Article 2A (Leases)
- Article 3 (Negotiable Instruments)
- Article 4 (Bank Deposits)
- Article 4A (Funds Transfers)
- Article 5 (Letters of Credit)
- Article 6 (Bulk Sales)
- Article 7 (Warehouse Receipts)
- Article 8 (Investment Securities)
- Article 9 (Secured Transactions)
- Article 10 (Effective Date and Repealer)
- Article 11 (Effective Date and Transition Provisions)
A commercial use is one which is undertaken for a business purpose, rather than hobby, recreational, educational, or other purposes. Such uses are usually attributed to a for-profit entity, rather than an individual, university or other educational institutions, or non-profit organizations (such as public libraries, charities, and other organizations created for the promotion of social welfare).
