Business Capacity

Business Capacity

What does Business Capacity mean in American Law?

The definition of Business Capacity in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

When a governmental unit owns what looks like an ordinary business, e.g., a local water works, its operation of it is said to involve its acting in a business, rather than a governmental, capacity. This may have legal significance, e.g., certain governmental immunities from suit may not apply to governmental activities in a business capacity. See also public corporation.


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