Trade disputes

In business, a trade dispute usually means a commercial disagreement between businesses over the sale of goods or services, such as non payment, late or defective delivery, or breach of a supply agreement. In labour law, the term refers instead to a dispute between an employer and a union. These are separate areas governed by different rules and decision makers.

How BC law treats it

Commercial disputes are resolved in the courts or by arbitration under the Arbitration Act, SBC 2020, c 2 or, for international disputes, the International Commercial Arbitration Act, RSBC 1996, c 233. Labour disputes are governed by the Labour Relations Code, RSBC 1996, c 244 or, for federally regulated employers, the Canada Labour Code, RSC 1985, c L-2.

What it means for your business

A clear dispute resolution clause in your supply contracts can save time and cost when something goes wrong.

Risks and common mistakes

Without a choice of law and forum clause, a cross border dispute can become a costly fight about where and under which law to sue.

For the full explanation, see our entry on Commercial dispute.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.