Business Law Glossary Flashcards
(122 cards)
1
Q
Acceptance
A
an agreement to an offer resulting in a contract
2
Q
Accord and satisfaction
A
an agreement made and executed in satisfaction of the rights one has from a previous contract
3
Q
Agent
A
the party appointed by the principal to enter into a contract with a third party on behalf of the principle
4
Q
Alien corporation
A
one that is incorporated in a foreign country
5
Q
Answer
A
official document detailing a defendant’s defense
6
Q
Antitrust
A
laws which seek to promote competition among businesses
7
Q
Apparent authority
A
the authority an agent is believed by third parties to have because of the behavior of the principal
8
Q
Appeal
A
request to a higher court to review a lower court’s decision
9
Q
Appellate courts
A
courts hearing cases appealed from a lower court
10
Q
Arraignment
A
charging a person with a crime and asking for that person’s plea
11
Q
Arrest
A
to take into police custody
12
Q
Assignee
A
the party to whom the assignment is made
13
Q
Assignment
A
a means whereby one party in a contract conveys rights to another person, who is not a party to the original contract
14
Q
Assignor
A
the party making the assignment
15
Q
Authority
A
power to act for someone else
16
Q
Bailee
A
the party who acquires possession, but not the title, of personal property by one party to another, under agreement
17
Q
Bailment
A
the transfer of possession, but not the title of personal property by one party to another, under agreement
18
Q
Bailor
A
the party who gives up possession, but not the title, of the personal property in a bailment
19
Q
Bear
A
a person in possession of an instrument
20
Q
Bearer paper
A
commercial paper payable to bearer; ex. to the person having possession of such
21
Q
Beneficiary
A
recipient of the proceeds of a life insurance policy: one who inherits property as specified in a will
22
Q
Bilateral contract
A
a contract which consists of mutual promises to perform some future acts
23
Q
Bill of Landing
A
the contract existing between the consignor and the carrier
24
Q
Bill of Sale
A
a document of conveyance which provides written evidence of one’s title to tangible personal property
25
Blank endorsement
having no words other than the signature of the endorser
26
Board of directors
a body of person elected by the stockholders to define and establish corporate policy
27
Booking
administrative step taken after an arrested person is brought to police station, which involves entry of the person's name, the crime for which the arrest was made, and other relevant facts on the police "blotter", and which may also include photographing, fingerprinting and the like.
28
Breach of contract
a situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in that contract
29
Business Law
those rules of conduct prescribed by government and its agencies in regulating business transactions
30
Cashier's check
a check drawn on a bank's own funds and signed by a responsible bank offical
31
Certificate of deposit
the acknowledgment by a bank of a receipt of money with an agreement of repayment
32
Certified check
a check for which the bank assures that the drawer has sufficient funds to make payment
33
Check
an order by a depositor on the bank to pay a sum of money to a payee
34
Civil Law
the body of law concerned with private or purely personal rights
35
Close (closely held) Corporation
a designation which applies to a corporation in which outstanding share of stock and managerial control are held by a limited number of people (often members of the same family)
36
Commercial paper (negotiable instrument)
a writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit
37
Common law
customs which have become recognized by the courts as binding on the community
38
Compensatory damages
an award paid to the injured party to cover the exact amount of their loss, but no more
39
Complaint (petition)
the written request which initiates a civil law suit
40
Consideration
that which the promisor demands and receives as the price for a promise
41
Consignee
one to whom goods are shipped by common carrier
42
Consignor
one who ships goods by common carrier
43
Contract
an agreement between two or more competent persons which is enforceable by law
44
Contract to sell
a seller agrees to transfer title to goods for a consideration (price) at a future time
45
Contractual capacity
the necessity that the parties desiring to enter into contracts meet all requirements
46
Corporation
a business entity created by statutory law and owned by individuals known as stockholders
47
Counteroffer
an intended acceptance which changes or qualifies an original offer and in effect, rejects that offer and becomes a new offer
48
Creditor beneficiary
a person who is not a party to a contract to whom the promisor of the contract owes an obligation or duty
49
Crime
an offense which is injurious to society as a whole
50
Criminal law
laws dealing with crimes and the punishment of wrongdoers
51
Defendant
the person against whom legal action is brought
52
Disaffirmance
the repudiation of, or election to avoid, a voidable contract
53
Discharge
termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law
54
Discovery
pretrial steps taken to learn the details of the case
55
Domestic corporation
operates in the state that granted the charter
56
Donee beneficiary
a third party beneficiary to whom no legal duty is owned and performance is a gift
57
Draft
a written order signed by one person requiring the person to whom addressed to pay a particular sum of money, to order or to bearer, on demand or at a certain time
58
Drawee
the person, company, or financial institution ordered to pay a draft
59
Drawer
the person who executes any draft
60
Duress
a means of removing one's free will, obtaining consent by means of a threat to do harm to the person, his family, his property, or his earning power
61
Employee
the person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be done.
62
Employer
the party who employs employees to do certain work
63
Executed contract
those contracts in which the terms have been fulfilled
64
Execution
the carrying out or completion of some task
65
Executory contract
those contracts in which the terms have not been completely executed or fulfilled by the parties
66
Existing goods
those goods which are, at the time of the contract, in existence and owned by the seller
67
Express authority
the authority of an agent, stated in the document or agreement creating the agency
68
Express contract
a contract in which the parties express their intentions, either orally or in writing, at the time of the agreement
69
Express warranties
the actual and definite statement of a seller, either orally or in writing at the time of the sale
70
Felony
a more serious criminal offense that is punishable by death or by imprisonment in a penitentiary for more than one year
71
Fiduciary
a relationship of trust and confidence, such as that which exists between partners in a partnership
72
Foreign corporation
designation that applies when a corporation operates in any state other than where it is chartered
73
Formal contract
those contracts which must be in special form or produced in a certain way, such as under seal
74
Fraud
the intentional or reckless false statement of a material fact, upon which the injured party relied, which induced the injured party to enter into a contract, to his or her detriment
75
Future goods
those goods which are not in existence at the time a contract is agreed to
76
General agent
one who is authorized to execute the principal's business of a particular kind, or all the principals' business at a particular place, if not all of one kind
77
General partner
those individuals actively and openly engaged in the business and help to everyone as a partner
78
Goods
movable tangible personal property
79
Holder
one in possession of commercial paper
80
Identified goods
the goods specified by the buyer and seller
81
Implied authority
an agent's authority to do things not specifically authorized in order to carry out express authority
82
Implied contract
one in which the terms of the contract are implied by acts or conduct of the parties
83
Implied warranties
warranties imposed by law, arising automatically because the sale has been made
84
Independent contractor
one who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as to a means by which the contract is executed, except for specifications established in the contract
85
Endorsee
a person who becomes the holder of a negotiable instrument by endorsement which names him or her as the person to whom the instrument is negotiated
86
Endorsement
the signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument
87
Endorser
person who writes his or her name on back of an instrument
88
Injunction
a permanent judicial order or decree forbidding the performance of a certain act.
89
Intangible personal property
evidences of ownership of personal property, such as stock of corporations, checks, and copyrights
90
Judgement
a decision of a court of law
91
Law
those rules of conduct commanding what is right and prohibiting what is wrong
92
Limited Liability Company
newest from of business ownership recognized in the U.S. combines features of both the corporation and partnership
93
Limited Partner
partners who have their liability for the firm's debts limited to the amount of their investment
94
Liquidated damages
the amount of the damages stipulated in a contract to be paid in the event one party breaches the contract
95
Maker
the person who executes a promissory note
96
Malpractice
a breach of contract by a professional person; failure to perform a professional service with the ability and care generally exercised by others in the profession
97
Merchant
a person who deals in goods of the kind, otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction
98
Minor
those persons under legal age; by most states (but not all), the standard is under the age of eighteen
99
Misdemeanor
a less serious criminal offense, generally punishable by fine and/or imprisonment of less than one year
100
Misrepresentation
stating an untrue fact
101
Necessaries
items, required or proper and useful, for sustaining a human being at an appropriate living standard (examples: food, clothing, and shelter)
102
Negligence
failure to exercise ordinary care; omission to do something which a reasonable prudent person would do under ordinary circumstances or the doing of something which a reasonable and prudent would not do; the lack of due care (a breach of a legal duty to act carefully resulting in injury to another or damage to another's property)
103
Negotiable instrument (commercial paper)
a writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit
104
Negotiation
the act of transferring ownership of a negotiable instrument to another party
105
Nominal damages
a token award to symbolize vindication of the wrong done to the plaintiff, generally the award is $1.00
106
Novation
the substitution of a new party for one of the original parties to a contract, such that the prior contract terminates and a new one substitutes for it
107
Offer
a proposal to make a contract
108
Offeree
the person to whom an offer is made
109
Offeror
the party who initiates, or makes an offer
110
Order paper
commercial paper made payable tot eh order of some named party; the word order or its equivalent must be used
111
Ordinance
law enacted by a local municipality
112
Partnership
the voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit
113
Payee
the party to whom any negotiable instrument is made payable
114
Personal property
all property which is not real property
115
Petition (complaint)
a written request initiating a civil suit
116
Plaintiff
the individual who initiates a civil action
117
Price
the consideration stipulated by contract, generally expressed in money or money's worth
118
Principal
a party who appoints a second party to serve as an agent
119
Private corporation
a corporation formed by individuals to carry out some non-governmental function
120
Process (summons)
a notice given to a defendant, attaching the complaint and stating a time frame in which an answer must be filed or an appearance made
121
Promissory estoppel
an equitable doctrine that prevents the promisor from revoking the promise when the promise justifiably acts in reliance upon the promise to his detriment
122
Promissory note
a negotiable instrument containing a promise to pay
