The differences between business and commercial law

On Behalf of | Jul 26, 2022 | Business Law |

Business and commercial law are two similar fields that many in the legal profession will be familiar with at the same time. However, business law generally focuses on topics such as how to start a company in California or what business owners can do if a dispute arises with a competitor. Commercial law generally focuses on topics such as contracts between business entities or the rules related to making or selling a product.

The two sectors are governed by separate sets of laws

Commercial law cases are typically governed by the Uniform Commercial Code (UCC) while business law cases are typically governed by applicable state or federal laws. The UCC is a single standard that is recognized by states in regards to issues like the sale of goods across state lines or disputes about negotiable instruments. A negotiable instrument is a check, note or similar document that serves as a promise of payment by one party to another.

What happens if a violation of the UCC or other applicable laws occur?

If the UCC or other applicable laws are violated, it could mean that a sale is voided. It could also mean that a contract will be ruled null and void or that a business may face fines or other penalties. In extreme cases, company executives may be held personally liable for their actions, which could result in people going to jail or prison.

Violating business or commercial laws may harm a company’s brand both now and in the future. It’s possible that companies that violate multiple laws or that violate the law several times will be forced to shut down on a temporary or permanent basis.