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Commercial Law

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The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

Commercial Law

 

(also business law, mercantile law), an independent body of law in a number of bourgeois countries regulating, along with civil law, commercial and private affairs. In countries with special commercial codes (France, the Federal Republic of Germany, Japan), there is a distinction between commercial law and civil law.

Commercial law arose in the Middle Ages along with the development of international trade in the Mediterranean area and was referred to as the law merchant (lex mercatorid). It took shape as a body of customary rules and principles relating to merchants and mercantile transactions and was fixed in city statutes or statutes of merchant guilds. Among the early collections of these rules and principles were the Ragusa Statutes and the Rhodian Sea Law. In certain countries, such as Germany, the codification of commercial legislation preceded that of civil legislation.

In countries where it forms a separate body of jurisprudence, commercial law regulates the activities of business associations and sets forth procedures for the registration of business associations and the keeping of such records as journals. It also deals with questions of agency, the circulation of securities (checks, notes, stock certificates), and procedures governing commercial transactions and the dissolution of business associations, in particular, declarations of bankruptcy.

As capitalism has developed, the rules of civil and commercial law have in practice come to be applied to the same relations; as a result, the two branches have been unified in a number of countries (Sweden, Italy) in a single legislative act—a civil code or a code of obligations. In the United States, the development of the rules regulating capitalist business dealings took a different direction. There, a federal civil code does not exist. On the initiative of interested business circles, the Uniform Commercial Code was drawn up and approved by the National Conference of Commissioners on Uniform State Laws, the American Law Institute, and the American Bar Association. Published in 1957, this unofficial code has served as the basis for the official codification of commercial legislation in all states except Louisiana.

REFERENCE

Grazhdanskoe i torgovoe pravo kapitalisticheskikh gosudarst. Moscow, 1966. Pages 9–12.
The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
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References in periodicals archive
This is borne out by the historical Law Merchant as well as its modern equivalent.
(1990) "The Role of Institutions in the Revival of Trade: The Law Merchant, Private Judges, and the Champagne Fairs." Economics and Politics 2 (1): 1-23.
Chen, Code, Custom, and Contract: The Uniform Commercial Code as Law Merchant, 27 TEX.
court as to the prevailing custom in the law merchant, and, in the late
the law merchant, the law maritime, and the law of state-state relations
(31.) See, e.g., Michael Conant, The Commerce Clause, the Supremacy Clause and the Law Merchant: Swift v.
It was advocatory rather than descriptive or analytical." (36) In fact, the Right Honourable Sir Richard Atkin, in his Forward to Bewes' Romance of the Law Merchant lamented that merchants were not associated with notions of romance and celebrated Bewes's book's potential to "not only create an interest in the past, but give a vision of the romance that attends the commerce of the present." (37)
Another similarity between the Law Merchant and the Court of Arbitration for Sport is that both bodies may settle disputes ex aequo et bono; in other words, applying a general principle of fairness or equity.
(19) Modern literature often invokes images of the "ancient" law merchant: autonomous, cosmopolitan, transnational.
The UCC makes it very clear in Section 1-103 that custom is favored, particularly if law merchant. It provides that the Code is to be interpreted liberally in order "to permit the continued expansion of commercial practice through custom, usage, and agreement between the parties" whilst "unless displaced by the particular provisions of the Code, the principles of law and equity including the law merchant ...
There is a difference between institutions that evolve as communities trade with one another - the Law Merchant, standardized weights and measures, etc.
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