Commercial Law

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.

    One of the earliest recorded economic thinkers was the 8th century Greek farmer/poet Hesiod, who wrote that labor, materials and time needed to be allocated efficiently to overcome scarcity. But the founding of modern western economics occurred much later, generally credited to the publication of Scottish philosopher Adam Smith's 1776 book, "An Inquiry Into the Nature and Causes of the Wealth of Nations."

    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).