Both business and commercial laws cover a wider area and encompass commerce, business, consumer transaction and creation as well as management of business organizations. In commercial laws, some most significant areas include sales and leases, negotiable instruments, secured transactions, credit law etc. Contact Clearwater business law to schedule a meeting with a lawyer who can meet all of your queries related to business and commercial law. The person will also offer guidance to safeguard your business from legal troubles.
Sales & Leases
Contracts for lease, sale and/or distribution of goods are usually regulated by state law. Most states follow Article 2 and Article 2A of the UCC (Uniform Commercial Code) in this context. According to the UCC, a sale is defined as a contract that involves passing of title of goods from the seller to the purchaser. Goods refer to all movable things when the contract for the sale was created.
The UCC provides information about rules and regulation for sales contract. Additionally, the UCC also regulates sales warranties deemed important by most parties, express warranties, implied fitness warranty for a specific purpose and implied warranty for merchantability.
It is a promissory note, bill or exchange, check or other specialized document considered to represent money that is transferrable from one party to another. It refers to an unconditioned writing to order or promise payment of a fixed sum of money.
The state laws mostly cover the laws for negotiable instruments. All states comply with Article 3 of the UCC that deals with transactions in relation with negotiable instruments.
Lenders are often not satisfied with a promise and demand more for credit extension. A secured transaction takes place when a borrower agrees that the lending institution may take the collateral in case, the borrower fails to make payment in time.
The law governing secured transactions, governed by the state laws, is a subset of contract law. All states consider Article 9 of the UCC, which involves dealing with secured transactions. Article 9 clearly defines and explains the rules for a secured transaction agreement and solving conflicts resulting from such an agreement.
Creditor and Debtor Law
The basic understanding about the subject matter is crucial whether you are a business owner, borrower or creditor. Credit allows an individual to borrow now with a promise to pay back in future. Today, most credit transactions are made possible via the loans or credit cards issued by the banks or any other lending institution.
Some businesses directly provide credit to their customers. If any business organization provides a credit, it must adhere to the applicable state and federal credit laws governing debt collection.
Following is a list of important federal credit and debt collection statutes:
- Equal Credit Opportunity Act (ECOA)
- Truth in Lending Act (TILA)
- Fair Credit Reporting Act (FCRA)
- Fair Credit Billing Act
- Fair Debt Collection Practices Act (FDCPA or FDCA)
Business and corporate laws are a vast concept. These laws involve mild to severe complications. Consult an eminent lawyer if you have any query and whenever you face any trouble.