commercial law and commercial transactions encompass all aspects of business, including collections and bankruptcy, banking, contracts, negotiable instruments, secured transactions, and trade in general. commercial transactions or commercial law covers both domestic and foreign trade, as well as trade between states.
most commercial transactions are governed by the uniform commercial code (ucc), which is basically a set of standardized laws used by all 50 states that govern financial contracts.
the ucc is divided into nine articles that cover the broad range of issues that arise in commercial transactions including:
- article 2: sales of goods (contracts)
- article 2a: leases of goods
- article 3: negotiable instruments (banknotes and drafts, or commercial paper)
- article 4: bank deposits (banks and banking, collections)
- article 4a: funds transfers (transfers of funds between banks)
- article 5: letters of credit (consumer credit, debtor and creditor agreements, transactions involving credit letters)
- article 6: bulk transfers and bulk sales (auctions and liquidations of assets)
- article 7: warehouse receipts, bills of lading, title (storage of goods)
- article 8: investment securities (securities and financial assets)
- article 9: secured transactions (including mortgages, deeds of trust, bankruptcy)