The area of business law touches on a variety of legal matters relating to the formation and operation of business entities. Such matters generally are governed by state law.
Transactions involving the sale and lease of goods are regulated by a state’s commercial code. Most states have adopted some form of the Uniform Commercial Code to govern such transactions.
Corporations are legal entities owned by shareholders who invest capital to finance the business. Ownership of shares may be private or open to the public. The limited liability of shareholders for debts of the corporation is a key reason businesses use this type of business entity.
Partnerships are business entities formed by two or more people who invest in a business and share in its profits and losses. Partner liability for debts of the partnership varies depending on the type of partnership formed.
A nonprofit organization is a group organized for purposes other than generating profit. Such organizations must spend their income for charitable, educational, religious or other approved purposes or put it back into the operation of the organization.
A joint venture is an entity formed to undertake a transaction or business operation for mutual profit. Generally, each person contributes assets and shares risk but in a less-structured way than a partnership.
Transactions for the sale and lease of goods are governed primarily by the sales laws of each state. Every state but one has adopted some form of Article 2 of the Uniform Commercial Code as the main body of law regulating transactions in goods.
The law of unfair competition provides relief for a business suffering an economic injury as a result of deceptive or wrongful practices by competing businesses.
Commercial contracts bind parties to a business transaction and set forth the agreed terms of the transaction.
Last updated: Sept. 30, 2008