Also known as: business routines · course of business
Written by attorneys · grounded in primary & secondary sources — see below
A regular pattern of conduct followed by a business in its commercial operations. Such a pattern is relevant to prove that a particular act occurred in accordance with the established practice.
Bruce Baldwin purchased navigation gear from a shipping company that regularly sold used equipment as part of its operations. The sale followed the company's established pattern of disposing of older gear to maritime buyers. Because the transaction occurred within that business routine, Bruce took the equipment free of the lender's security interest even though the interest was perfected.
Brian Bailey, a partner in a youth athletic camp, arranged additional field rentals following the firm's usual practice of expanding capacity during peak demand. The arrangement caused an injury to a camper. Because the act occurred in the ordinary course of the partnership's business routine, the partnership was held liable for the resulting settlement.
Select any source to read its text and confirm it supports the definition.
Belinda Baxter responded to a subpoena for maintenance logs by producing them exactly as kept in the company's daily filing system. The production mirrored the firm's established business routine for record storage. The court accepted the documents without requiring reorganization because they were produced in that ordinary course.
Barbara Bennett's corporation sold surplus servers as part of its regular practice of liquidating outdated equipment to fund operations. The sale followed the company's established business routine for asset turnover. No shareholder approval was required because the disposition occurred in the usual and regular course of business.
Bobby Brady was subject to a temporary order restraining asset transfers during divorce proceedings. He continued selling inventory to customers in the normal pattern of his retail business. The court permitted those sales because they occurred in the usual course of business rather than as extraordinary dispositions.
Bradley Banks and his two partners voted on whether to renew a standard vendor contract. The renewal followed the partnership's ordinary practice of maintaining supplier relationships. Because the decision concerned a matter in the ordinary course of business, the majority vote was sufficient to bind the firm.
Evidence that a business followed an established routine is relevant to show that a particular event, such as mailing a letter or producing a document, occurred in accordance with that pattern. The routine must be shown to be a regular response to a repeated specific situation.
Supporting sources
A buyer qualifies when the purchase comports with the seller's usual or customary practices in selling goods of that kind. Occasional or sporadic sales may not satisfy the requirement even if the buyer acts in good faith.
Matters decided by majority vote are those arising in the ordinary course, such as routine vendor renewals. Acts outside that course, such as substantially expanding operations mid-season, require unanimous consent.
No. The injunction permits transfers made in the usual course of business or for necessities of life. Only extraordinary dispositions are restrained, and notice of those must be given.
Shareholder approval is not required for a sale, lease, or other disposition that occurs in the usual and regular course of the corporation's business. Dispositions outside that course generally require approval unless the articles provide otherwise.
…interests. Then, too, independent research carries its own indicia of reliability, as it is conducted, so to speak, in the usual course of business and must normally satisfy a variety of standards to attract funding and institutional support. Finally, there is usually a limited number of scientists actively conducting research on the…