Connection lost
Server error
Where you see wrong or inequality or injustice, speak out, because this is your country. This is your democracy. Make it. Protect it. Pass it on.
✨ Enjoy an ad-free experience with LSD+
Legal Definitions - trade practice
Definition of trade practice
Trade Practice
A trade practice refers to a common, established, or customary way of conducting business within a specific industry or profession. These practices often involve unwritten rules, standard procedures, or widely accepted specifications for products, services, or transactions that participants in that industry generally follow.
Example 1: In the residential construction industry, it is a common trade practice for contractors to include a standard warranty period (e.g., one year for workmanship and materials) in their contracts for new home builds, even if not explicitly mandated by local law. This warranty covers defects that may arise after the home is completed.
Explanation: This illustrates a trade practice because it's a customary and widely accepted method of doing business within the construction sector, providing a baseline expectation for quality assurance that participants in the industry generally adhere to.
Example 2: When purchasing fresh produce from a wholesale distributor, it is a common trade practice for the produce to be packaged in standard-sized crates or boxes (e.g., 25-pound boxes for apples, 10-pound cartons for berries) and for invoices to specify the grade of the produce (e.g., "Fancy" or "No. 1") according to industry standards.
Explanation: This demonstrates a trade practice through the use of standardized packaging and quality specifications that are commonly adopted and understood by buyers and sellers within the agricultural wholesale industry.
Example 3: Within the automotive repair industry, it is a widely accepted trade practice for repair shops to provide a written estimate of costs to a customer before beginning any significant work on a vehicle and to obtain the customer's approval for any additional repairs discovered during the service.
Explanation: This example highlights a trade practice as it describes a customary procedure for transparency and customer consent that is generally followed by businesses providing auto repair services.
Simple Definition
A trade practice refers to a customary or established way of conducting business within a particular industry. It often involves specific methods or standards adopted by that industry, especially concerning specifications for product attributes like size, thickness, shape, or quality.