Business Law vocab Flashcards
(145 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 fulfillment 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 3rd party on behalf of the principal
4
Q
answer
A
official document responding to the plantiff’s complaint
5
Q
antitrust law
A
laws which seek to promote competition among businesses
6
Q
apparent authority
A
the rights an agent is believed to have by 3rd parties because of the principals behavior
7
Q
appeal
A
request to a higher court to review a lower courts decision
8
Q
appellate courts
A
courts that hear cases appealed from a lower court
9
Q
assignee
A
a 3rd party to whom rights in a contract are assigned
10
Q
assignment
A
a means whereby one party in a contract conveys rights to another, who is not a party to the original contract
11
Q
assignor
A
the party assigning rights in a contract to a 3rd party
12
Q
authority
A
power to act for someone else
13
Q
bailee
A
the party who acquires possession, but not the title, of another’s personal property, under agreement
14
Q
bailment
A
the transfer of possession, but not the title, of personal property in a bailment
15
Q
beneficiary
A
the recipient of the proceeds of a life insurance policy
16
Q
bailor
A
the party who gives up possession, but not the title, of personal property in a bailment
17
Q
bilateral contract
A
a legally enforceable agreement which consists of mutual promises to perform future acts
18
Q
bill of lading
A
the contract existing between the consignor and the carrier
19
Q
bill of sale
A
a document that conveys or evidences title to tangible personal property
20
Q
board of directors
A
a body of persons elected by the stockholders to define and establish corporate policy
21
Q
breach of contract
A
failure or refusal to perform contractual obligations
22
Q
business law
A
rules of conduct for the performance of business transactions
23
Q
cashier’s check
A
1 - a check drawn on a banks own funds and signed by a responsible bank official
2 - a check for which the bank assures that the drawer has sufficient funds to make payment
24
Q
check
A
an order by a depositer to the bank to pay a sum of money to a payee
25
civil law
the body of law concerned with private or personal rights
26
close (closely held) corporation
a corporation in which outstanding shares of stock and managerial control are held by a limited number of stockholders and is not publicly traded
27
common law
the body of law derived from judicial decisions, rather than from statutes or constitutions
28
compensatory damages
an award paid to the injured party to cover the exact amount of their loss, but no more
29
complaint
the document which initiates a civil lawsuit
30
consideration
the bargained for exchange in a contract
31
consignee
one who receives goods shipped by common carrier
32
consignor
one who ships goods by common carrier
33
contract
a legally enforceable agreement
34
contract to sell
an agreement to sell goods at a future time
35
contractual capacity
the legal ability to enter into a contract
36
corporation
a business entity created by statue and owned by stockholders
37
counteroffer
a change to an original offer that rejects that offer and becomes a new offer
38
creditor beneficiary
a 3rd party beneficiary owed a debt by a party to a contract
39
crime
an offense which is injurious to society as a whole
40
criminal law
laws dealing with crimes and the punishment of wrongdoers
41
damages
money that a wrongdoer must pay as the result of a legal action
42
deed
document conveying title to real property
43
defendant
the party against whom legal action is brought
44
delegation
transfer of contractual duties to a 3rd party
45
disaffirmance
election to avoid a voidable contract
46
discharge
any method by which a legal duty is extinguished
47
discovery
the formal and informal exchange of information between sides in a lawsuit
48
domestic corporation
a business organization that operates in the state that granted the charter
49
donee beneficiary
a 3rd party beneficiary to whom no legal duty is owed and performance is a gift
50
drawee
the person, company, of financial institution ordered to pay a check
51
drawer
the person who executes any check
52
duress
removing ones free will and obtaining consent by means of a threat
53
employee
a person hired to perform work that is directed and controlled by the employer
54
employer
the party who hires employees to do certain work
55
executed contract
a legally enforceable agreement in which the terms have not been completely executed or fulfilled
56
existing goods
goods which are, at the time of the contact, in existence and owned by the seller
57
express authority
rights of an agent stated in agreement creating the agency
58
express contract
an agreement in which the parties communicate their intentions either verbally or in writing
59
express warranty
the actual and definite statement of a seller, either verbally or in writing, at the time of the sale
60
federal trade commission (FTC)
an agency of federal government to promote free and fair competition by prevention of trade restraints, price fixing, false advertising and other unfair methods of competition
61
felony
serious criminal offense punishable by imprisonment for more than on year or death
62
fiduciary
a person in relationship of trust and confidence
63
fixture
objects permanently attached to real property
64
FOB destination
a sales contract term where title and risk of loss passes to the buyer when the goods are delivered to the buyer
65
FOB shipment
a sales contract term where risk of loss passes to buyer when the goods are delivered to the shipper and transportation arrangements are made
66
foreign corporation
a corporation that operates in a state other than where it is chartered
67
fraud
inducing another to contract as a result of an intentionally or recklessly false statement of a material fact
68
future goods
goods not in existence or not yet owned by the seller at the time the contract was created
69
general agent
one who is given broad authority to conduct the principals business
70
general partner
individual actively and openly engaged in the business and held to everyone as a partner
71
goods
movable tangible personal property
72
identified goods
the goods specified by the buyer and seller
73
implied authority
an agents authority to do things in order to carry out express authority
74
implied contract
a legally enforceable agreement in which the terms are set by acts or conduct of the parties rather than expressed verbally or in writing
75
implied warranties
protections imposed by law, arising automatically because the sale has been made
76
independent contractor
one who contracts to jobs and is controlled only by the contract as to how performance is to be rendered
77
injunction
a judicial order or decree forbidding certain conduct
78
intangible personal property
personal property that lacks a physical presence
79
judgement
a decision of a court
80
law
governmental rule prescribing conduct and carrying a penalty for violation
81
limited liability company (LLC)
a business organization that features liability protection and pass through taxation
82
limited partner
partner whose liability for the firms debts is limited to the amount of their investments
83
liquidated damages
reasonable damages stipulated in a contract to be paid in the event of a breach
84
mailbox rule
a mailed acceptance to an offer is effective when posted
85
merchant
a person who deals in goods of the kind or otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction
86
minor
those persons under legal age; for most states, the standard is under the age of 18
87
misdemeanor
a less serious crime punishable by fine and/or imprisonment of less than 1 year
88
misrepresentation
false statement of a material fact
89
necessaries
items required for living at a reasonable standard (ex. food, clothing, and shelter)
90
negligence
failure to exercise reasonable care
91
negotiable instrument
a writing drawn in a special form which can be transferred as a substitute for money or as an instrument to another party
92
negotiation
the act of transferring ownership of a negotiable instrument to another party
93
nominal damages
small amount awarded when there is a technical breach but no injury
94
offer
a proposal to make a contract
95
offeree
the party to whom an offer is made
96
offeror
the party who initiates or makes an offer
97
ordinance
law enacted by a local unit of government
98
partnership
the voluntary association of 2 or more people as co owners of a business
99
payee
the party to whom a negotiable instrument is made payable
100
personal property
the movable and tangible property
101
plaintiff
the party who initiates a civil action
102
pre existing duty rule
no consideration is given for a contract modification if a party is under a pre existing duty to perform
103
price
the consideration stipulated by contract, generally expressed in money
104
principal
a party who appoints another to serve as an agent
105
private corporation
a corporation formed to carry out some non governmental function
106
promissory estoppel
an equitable doctrine and substitute for consideration that prevents the promiser from revoking the promise when the promisee justifiably relies to their detriment
107
promissory note
a negotiable instrument containing a promise to pay
108
public corporation
a corporation formed to carry out government functions
109
punitive damages
an award paid to the plaintiff in order to punish the defendant
110
quasi contract
a contract created or implied by law to prevent unjust enrichment
111
ratification
approving an act which was executed without authority; electing to be bound by a voidable contract
112
real property
land and those objects permanently attached to land
113
rescission
to set aside or cancel a contract
114
rejection
refusal to accept
115
revocation
cancellation of an instrument by the maker or drawer; rescinding an offer
116
sale
the transfer of title to goods from the seller to the buyer for consideration
117
secret partner
a partner who is active but known to the public
118
service contract
a contract whose subject matter predominately involves services
119
shareholders / stockholders
those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation
120
silent partner
an individual who takes on active part in the management of a partnership, but has capital invested in the business
121
sole proprietorship
a business owned by one person, whois personally subject to claims of creditors
122
special agent
one authorized by the principal to execute specific acts
123
specific performance
a remedy by which the court requires the breaching party to perform the contract
124
stare decisis
the principle that the decision of a higher court should serve as a guide or precedent and control the decision of a similar case in the future
125
statute of frauds
law requiring certain contracts be in writing to be enforceable
126
statute of limitations
a law that restricts the period of time within which an action may be brought to court
127
statutes
laws which are enacted by legislative bodies
128
subchapter S corporation
business organization in which shareholders are taxed as a partnership (no double taxation) without losing corporation status
129
summons
a notice given to a defendant, attaching the complaint and stating a time frame in which to respond
130
term life policy
contract whereby insurer assumes risk of death of insured for a specific time with no cash surrender value
131
3rd party beneficiary
person not party to a contract, but whom parties intended to benefit
132
title
ownership; evidence of ownership of property
133
tort
a private or civil wrong against a person or their property, other than by breach of contract, for which there may be action for damages
134
trial court
court which conducts the original trial of a case
135
undue influence
improper influence that is asserted by one dominant person over another, without the threat of harm
136
unenforceable contract
an agreement which at the current time is not enforceable by law
137
uniform commercial code (UCC)
model act that includes provisions concerning certain sales of goods and negotiable instruments
138
unilateral contract
a contract formed when an act is done in consideration for a promise
139
universal life policy
an insurance product combining features of both whole life and term life policies
140
usurious
exceeding the maximum rate of interest which may be charged on loans
141
valid contract
a contract which is legally enforceable
142
void contract
an agreement of no legal effect
143
voidable contract
a contract which would be an enforceable agreement, but due to circumstances may be set aside by one of the parties
144
warranties
guarantees made by a seller that an article, good or service will conform to a certain standard or will operate in a certain manner
145
whole life policy
insurance that covers an insured for life and accumulates cash surrender value
