Business & Commercial Law: FAQ
The legal system can quickly become complicated for those who haven’t experienced it. Our firm is here to help you work through your legal situation while helping you move forward. Below is a list of frequently asked questions for your convenience. To discuss your case with an attorney from The Law Firm of Peters & Wasilefski, contact us today at 717-260-3483 or fill out our contact form.
Q: What body of law governs a contract for the sale of goods?
A: A contract for the sale of goods is governed mainly by state law. Pennsylvania, along with most other states, has adopted Article 2 of the Uniform Commercial Code (UCC). This provides rules for all phases of a sales contract, including formation, modification, performance and available remedies in the case of a breach.
Q: What body of law governs a lease of goods?
A: A contract for the lease of goods is also primarily regulated by Pennsylvania state law.
Q: What is a secured transaction?
A: Many lenders require some sort of security interest before they will grant a loan. A secured transaction happens when the borrower hands over collateral property. Should the borrower default on the loan for any reason, the lender may then take possession of the specified property.
Q: What is a negotiable instrument?
A: A negotiable instrument is an unconditioned, signed document that states money is to be transferred to someone else. For example, checks, certificates of deposit and promissory notes can be used as negotiable instruments.
Q: What can a creditor do to collect a debt?
A: A creditor may file a lawsuit and obtain a judgment against a debtor. In addition, a creditor may repossess any collateral used as security for the debt and/or garnish the debtor’s wages.
Q: What is bankruptcy?
A: Bankruptcy is a legal way to seek relief from creditors. A debtor often files for bankruptcy when they owe more than they have the ability to pay. In general, the debtors’ assets are used to pay off debt or payment plans are set up. It all depends on your circumstances.
Q: What are the major business organization forms, and how do I choose one that is right for my business?
A: The four major business organization forms are (1) the partnership, (2) the limited liability company, (3) the corporation and (4) the sole proprietorship. Each has advantages and disadvantages, but when choosing the correct form for your business, the core focus should typically be on personal liability and tax implications.