Business organizations can exist and properly function due to the principles imposed by commercial law. This legislative branch creates certain standards so that numerous businesses could coexist contributing to the state budget without making any harm to competitors. Commercial law is also concerned with rights and duties of the suppliers of goods and services in the process of trade. Protection of customers’ and manufacturers’ rights is conducted under the same law.
Commercial law is targeted at regulating a broad range of issues regarding business activity, nevertheless, its main purposes are clearly stated. In the first place, uniformity creates the basis of commercial law. If the whole system is uniform, lawyers and entrepreneurs know what to expect from courts which apply the law in the same manner. Business owners all over the country rely on the same laws which optimize time in conducting business. A set of laws which governs commercial transactions between the US territories is called the uniform commercial code.
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Another basic purpose of the commercial law is its predictability. It is essential for entrepreneurs that they feel safe entering into multiple transactions. Predictability gives the assurance that each transaction receives a certain level of protection. In fact, this function of the commercial law is very similar to uniformity as they both create alike standards which are known and clear to business owners.
As any other legislative branch, commercial law always involves enforcement. Business relationships are created, regulated, and terminated with the help of contracts. These documents have a binding force which regulates actions of the contracting parties and assures that their relationships and assets stay intact. Judicial contract enforcement procedures are usually held in courts, however, parties may find alternative nonjudicial ways of settling disputes like arbitration.
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