Business and Corporate Law

States apply the provisions of the Uniform Commercial Code (UCC) to all businesses involved with commercial transactions (sales of goods, some services, commercial paper, bank deposits and collections, letters of credit, bulk transfers, warehouse receipts, bills of lading, investment securities, and secured transactions). A wide array of state laws also protect individuals from business misconduct through various regulatory provisions, including licensing requirements regulating minimum standards for the providing of goods or services to consumers. Examples include the requirement for building permits and licensing of certain skilled trades and professions. Surprising, however, is the fact that many states do not require a business to maintain liability insurance, and judgments against those businesses may require forced dissolution or liquidation of business assets to satisfy such debts. Most states also have "long-arm" statutes to facilitate jurisdiction of state courts over out-of-state businesses whose products or services have caused harm within a state. Most states also recognize a "products liability" cause of action for defective products manufactured or sold by businesses.