Legal Definitions - commodity

Definition: A commodity is a tangible item that is bought and sold in the market. It can be a product or merchandise, but not a service. It is often a raw material or agricultural product that is used to produce other goods.

Examples:

• Oil
• Corn
• Cotton
• Gold

These examples illustrate the definition of a commodity because they are all tangible items that are traded in the market. They are not services, but rather raw materials or agricultural products that are used to produce other goods. For example, oil is used to produce gasoline, corn is used to make food products, cotton is used to make clothing, and gold is used in jewelry and electronics.