Most of the people think that both business litigation and commercial litigation are the same things. But in actuality, both these litigations are different from each other. There are many areas where business litigation, and commercial litigation overlaps each other and that’s what makes it difficult to differentiate between the two. Even an attorney practicing business litigation will also be practicing commercial litigation as well. So, if you are working with a commercial litigation attorney Israel, then you will not have to find a different lawyer for business litigation.
If you are going to start a business or already running one, then it becomes very important for you to know the basic difference between these two types of litigations. But along with knowing these two types of litigations, it is also vital for you to understand the Uniform Commercial Code.
The main difference between business and commercial litigation
Business litigation deals with different aspects of how a business is administered and managed. On the other hand, the commercial litigation deals with practices associated with the business like tax, employment, transaction, sale of goods and much more. So, you can consider commercial litigation as a subset of business litigation.
In most of the places, you will find the definition of both business and commercial litigations overlapping each other as both are practiced parallelly by the law firms and attorneys. You will never find a commercial litigation lawyer who doesn’t practices business litigation or vice versa.
Another main difference between business litigation and commercial litigation is the governing body. Business law is regulated by the state and federal law while the Uniform Commercial Code regulates commercial litigation. The state and federal regulations talk about fair wage compliance, stocks, investments, safety in the workplace and they all fall in the business litigation category.
What is Uniform Commercial Code?
The Uniform Commercial Code is a set of laws that have been established for regulating sales of personal property and other business transactions. From borrowing money to selling goods, everything is covered under the Uniform Commercial Code. As discussed above, even the commercial litigation falls under the Uniform Commercial Code. But you should know that a sale of service doesn’t fall under the Uniform Commercial Code.
In layman’s language, the Uniform Commercial Code is basically a set of laws made to protect consumers from unfair business practices. It regulates various aspects of commercial transactions and sale of goods in the U.S. But along with implying a set of rules and laws for protecting consumers from unfair business practices, it also sets forth laws for negotiable instruments, secured transactions, the lease of good and many other things.
The Uniform Commercial code laws
All the laws mentioned in the Uniform Commercial Code has been set up and maintained by the National Conference of Commissioners on Uniform State Laws. The National Conference of Commissioners on Uniform State Laws is also known as the Uniform Law Commission. It is a non-profit organization that deals with all the laws of UCC. You should know that Uniform Commercial Code is not same everywhere as every state has implemented its own version of UCC which is slightly different from the main UCC. But most of the states have adopted the nine basic articles and procedure of the Uniform Commercial Code.
Different articles deal with different laws of UCC for example:
- Article 1 explains general provisions
- Article 3 explains negotiable instruments
- Article 5 explains letters of credits
- Article 6 explains bulks sales, auctions and liquidations of assets, and so on.
As a business owner, you will have to deal with commercial or business litigation at some point because they are inevitable. Having a commercial litigation lawyer Israel will surely be the best thing you can do but you shouldn’t be completely blank about the types of litigations. Knowing even some of the most basic terms and differences related to litigation might help you in getting better results.