60 Commercial law THE STUDY OF LAW Lead-in 4. Commercial law is the body of law that governs trade and commerce. Discuss these questions in small groups. 1. What bodies of law govern commerce in your jurisdiction? 2 How would a contract dispute between two companies from different jurisdictions be settled? 3 Which international bodies do you know that set guidelines for commercial transactions? Reading 1: Commercial law 2 Read the text below and decide whether these statements are true (1) or false (F). 1. Commercial law is a general term for a number of diverse areas of the law which regulate trade and commerce. 2 Contentious work includes the drafting of contracts and advising clients. 3 The Uniform Commercial Code applies to commercial transactions in all of the member nations of the European Union. 4 The World Trade Organisation checks to see if countries follow the trade ‘agreements they have signed. Commercial law deals with issues of both private law and public law. It developed as a distinct body of jurisprudence with the beginning of large- scale trade, and many of its rules are derived from the practices of traders. Specific law has developed in a number of commercial fields, including agency, banking, bankruptcy, carriage of goods, commercial dispute resolution, company law, competition law, contract, debtor and creditor, sale of goods and services, intellectual property, landlord and tenant, mercantile agency, mortgages, negotiable instruments, secured transactions, real- property and tax law. The work of a commercial lawyer may involve any aspect of the law as it relates to a firm's business clients, and the role of the lawyer is to facilitate business clients’ commercial transactions. It is essential for a commercial lawyer to have not only a good knowledge of a lot of substantive law, but also a thorough understanding of both contemporary business practices and the particular business needs of each client. A commercial lawyer may be asked to advise a client on matters relating to both non-contentious and contentious work. Non-contentious work largely involves advising clients on the drafting of contracts, whereas contentious work commonly involves the consequences of breach of contract.Many jurisdictions have adopted civil codes that contain comprehensive statements of their commercial law, e.g. the Uniform Commercial Code (UCC), which has been generally adopted throughout the USA. Within the European Union, the European Parliament and the legistatures of member nations are ‘working to unify their various commercial codes. ‘A substantial amount of commercial law is governed by international treaties and conventions. The United Nations Commission on International Trade Law (UNCITRAL) regulates international trade in cooperation with the World Trade Organisation (WTO). The WTO is responsible for negotiating and implementing new trade agreements, and is in charge of policing member countries’ adherence to these agreements, which are signed by the majority of the world's trading nations and ratified by their legislatures (for example, _ Parliament in the UK or Congress in the USA). Key terms: Fields, institutions and concepts in ommercial law 3 Look at the areas of activity in commercial law mentioned in the first paragraph of the text above and answer these questions. Use the glossary if necessary. 1 Which field deals with the legal rights associated with products of the mind, such as patents, copyrights and trademarks? 2 Which field involves the laws and regulations governing market behaviour, particularly agreements and practices that restrict free enterprise? 3 Which institution deals with the supply of credit information about business organisations to other businesses and financial institutions? 4 Which field is concerned with the legal relationships between the shipper (or owner) of goods, the carrier, and the receiver/consignee of goods? 5 Which field focuses on the laws regulating money paid to the government in connection with commercial transactions? Choose the correct word or phrase to complete these definitions. 4 ‘Agency’ is the term for the relationship of a person who acts in addition to / on behalf of / on account of another person, known as the principal. 2 Bankruptcy is when someone cannot pay what they owe / own / won, and all their property is surrendered to a courtappointed person who liquidates the property to pay the claims of creditors / owners / debtors. 3 A secured transaction is a loan or credit translation / transaction / termination in which the lender / loaner / debtor acquires a security interest in certain property owned by the borrower and has the right to repossess the property if the borrower cannot pay. 4 Negotiable instruments are documents which represent a right of charge / payment / credit for a specified sum of money on demand or at a defined time. Unit 6 Commercial law 6