Commercial law generally focuses on commercial transactions. The scope and extent of commercial law is vast. In some jurisdictions commercial law is partly considered within the scope of law and economics.

The following are the key elements that should be sought for a commercial enterprise:

i) The will/purpose of the enterprise to generate income above a certain treshold (above the level of a craftsman enterprise)

ii) Continuity

iii) Independence

The parties (shareholders/partners) establishing the company enter into a contract titled “Articles of Association (AoA)”.

Competition is generally defined as a contest where economic decisions can be taken freely by the undertakings in the markets for goods and services.

• Advertisement and sales methods, which violate the rule of good faith and other illegal acts,

• Inducement breach or termination of contract,

• Unauthorized utilization of others’ business products.

• Revealing production and business secrets unlawfully,

• Not complying with general business conditions,

• Using general business terms and conditions, which violate the rule of good faith.

Persons whose economic interest are damaged or jeopardized.

i. Action for declaratory relief

It is another area of law which is directly related to functioning of the markets and consumer welfare. Competition Law is one of the major sub areas of law and economics which is an emerging area in Turkish legal system.

Competition laws regulate three major areas that may distort competition in the market. These are:

1. prevention of all kinds of agreements, and concerted practices between undertakings and anti-competitive decisions of associations of undertakings,

2. the prevention of abuse of dominant position and

3. the control mergers and acquisitions which may distort competition.

The purpose of Competition Law is set forth in Article 2 as ‘‘...to establish a system in the markets for goods and services by means of regulation, supervision and prevention of abuse of dominant position by undertakings and associations of undertakings and agreements, decisions and concerted practices which have as their object or effect the prevention, restriction or distortion of competition’’.

Pursuant to Article 3 of TCC, all matters regulated in the law are considered as commercial business and all matters (businesses and acts) concerning a commercial enterprise are considered as commercial.

The types of companies listed in the TCC may be grouped as corporate and non- corporate forms of companies.

• Joint Stock Company

• Limited Liability Company

• Cooperative Company (Cooperatives)

• Collective Company

• Commandite Company

The types joint stock corporation and limited liability company are the most common types preferred in business life in Turkey.

i. Shareholders General Assembly

ii. Board of Directors

iii. Statutory Auditors

Article 173 sets forth the duty of the State on measures to protect and support craftsmen and artisans.

Article 172 is a specific provision for the protection of consumers that sets forth the duty of the State to take measures to protect and inform consumers and encourage the initiatives to protect themselves.

Article 57 of TCO regulates unfair competition as a special type of tortious activity for non- commercial relations. It is based on the idea and general principle of protection of freedom to act in the economic area in order to protect the economic personality stated in Article 24 of the Turkish Civil Code.

Article 54 sets forth an objective and broad criterion and unlike the earlier version of the Law also makes clear that unfair competition may not be only between two rivals.