Glossary: Business Law Flashcards
(159 cards)
1
Q
An agreement to an offer resulting in a contract
A
Acceptance
2
Q
An agreement made and executed in satisfaction of the rights one has from a previous contract
A
Accord and Satisfaction
3
Q
The party appointed by the principal to enter into a contract with a third party on behalf of the principal
A
Agent
4
Q
One that is incorporated in a foreign country
A
Alien Corporation
5
Q
Official document detailing a defendant’s defense
A
Answer
6
Q
Laws which seek to promote competition among businesses
A
Antitrust
7
Q
The authority an agent is believed by third parties to have because of the behavior of the principal
A
Apparent Authority
8
Q
Request to a higher court to review a lower court’s decision
A
Appeal
9
Q
Courts hearing cases appealed from a lower court
A
Appellate Courts
10
Q
Charging a person with a crime and asking for that person’s plea
A
Arraignment
11
Q
To take into police custody
A
Arrest
12
Q
The party to whom the assignment is made
A
Assignee
13
Q
The party making the assignment
A
Assignor
14
Q
Power to act for someone else
A
Authority
15
Q
The party who acquires possession, but not the title, of personal property by one party to another, under agreement
A
Bailee
16
Q
The transfer of possession, but not the title of personal property by one party to another, under agreement
A
Bailment
17
Q
The party who gives up possession, but not the title, of personal property in a bailment
A
Bailor
18
Q
A person in possession of an instrument
A
Bear
19
Q
Commercial paper payable to bearer; i.e. to the person having possession of such
A
Bearer paper
20
Q
Recipient of the proceeds of a life insurance policy: one who inherits property as specified in a will
A
Beneficiary
21
Q
A contract which consists of mutual promises to perform some future 9 acts
A
Bilateral contract
22
Q
The contract existing between the consignor and the carrier
A
Bill of lading
23
Q
A document of conveyance which provides written evidence of one’s title to tangible personal property
A
Bill of sale
24
Q
Having no words other than the signature of the endorser
A
Blank endorsement
25
A body of persons elected by the stockholders to define and establish corporate policy
Board of directors
26
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
Booking
27
A situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in that contract
Breach of contract
28
Those rules of conduct prescribed by government and its agencies in regulating business transactions
Business law
29
A check drawn on a bank's own funds and signed by a responsible bank official
Cashier's check
30
The acknowledgement by a bank of a receipt of money with an agreement of repayment
Certificate of deposit
31
A check for which the bank assures that the drawer has sufficient funds to make payment
Certified check
32
An order by a depositor on the bank to pay a sum of money to a payee
Check
33
The body of law concerned with private or purely personal rights
Civil law
34
A designation which applies to a corporation in which outstanding share of stock and managerial control are held by a limited number of 2 people (often members of the same family)
Close (closely held) corporation
35
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
Commercial paper (negotiable instrument)
36
Customs which have become recognized by the courts as binding on the community
Common law
37
An award paid to the injured party to cover the exact amount of their loss, but no more
Compensatory damages
38
The written request which initiates a civil law suit
Complaint (petition)
39
That which the promisor demands and receives as the price for a promise
Consideration
40
One to whom goods are shipped by common carrier
Consignee
41
One who ships goods by common carrier
Consignor
42
An agreement between two or more competent persons which is enforceable by law
Contract
43
A seller agrees to transfer title to goods for a consideration (price) at a future time
Contract to sell
44
The necessity that the parties desiring to enter into contracts meet all requirements
Contractual capacity
45
A business entity created by statutory law and owned by individuals known as stockholders
Corporation
46
An intended acceptance which changes or qualifies an original offer and in effect, rejects that offer and becomes a new offer
Counteroffer
47
A person who is not a party to a contract to whom the promisor of a contract owes an obligation or duty
Creditor beneficiary
48
An offense which is injurious to society as a whole
Crime
49
Laws dealing with crimes and the punishment of wrongdoers
Criminal law
50
The person against whom legal action is brought
Defendant
51
The repudiation of, or election to avoid, a voidable contract
Disaffirmance
52
Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law
Discharge
53
Pretrial steps taken to learn the details of the case
Discovery
54
Operates in the state that granted the charter
Domestic corporation
55
A third party beneficiary to whom no legal duty is owed and performance is a gift
Donee beneficiary
56
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
Draft
57
The person, company or financial institution ordered to pay a draft
Drawee
58
The person who executes any draft
Drawer
59
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
Duress
60
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
Employee
61
The party who employs employees to do certain work
Employer
62
Those contracts in which the terms have been fulfilled
Executed contract
63
The carrying out or completion of some task
Execution
64
Those contracts in which the terms have not been completely executed or fulfilled by the parties
Executory contract
65
Those goods which are, at the time of the contract, in existence and owned by the seller
Existing goods
66
The authority of an agent, stated in the document or agreement creating the agency
Express authority
67
A contract in which the parties express their intentions, either orally or in writing, at the time of agreement
Express contract
68
The actual and definite statement of a seller, either orally or in writing, at the time of the sale
Express warranties
69
A more serious criminal offense that is punishable by death or by imprisonment in a penitentiary for more than one year
Felony
70
A relationship of trust and confidence, such as that which exists between partners in a relationship
Fiduciary
71
Designation that applies when a corporation operates in any state other than where it is chartered
Foreign corporation
72
Those contracts which must be in special form or produced in a certain way, such as under seal
Formal contract
73
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
Fraud
74
Those goods which are not in existence at the time a contract is agreed to
Future goods
75
One who is authorized to execute the principal's business of a particular kind, or all the principal's business at a particular place, if not all of one kind
General agent
76
Those individuals actively and openly engaged in the business and held to everyone as a partner
General partner
77
Moveable tangible personal property
Goods
78
One in possession of commercial paper
Holder
79
The goods specified by the buyer and seller
Identified goods
80
An agent's authority to do things not specifically authorized in order to carry out express authority
Implied authority
81
One in which the terms of the contract are implied by acts or conduct of the parties
Implied contract
82
Warranties imposed by law, arising automatically because the sale has been made
Implied warranties
83
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
Independent contractor
84
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
Endorsee
85
The signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument
Endorsement
86
Person who writes his or her name on back of an instrument
Endorser
87
A permanent judicial order or decree forbidding the performance of a certain act
Injunction
88
Evidences of ownership of personal property, such as stock of corporations, checks and copyrights
Intangible personal property
89
A decision of a court of law
Judgment
90
Those rules of conduct commanding what is right and prohibiting what is wrong
Law
91
Newest from our business ownership recognized in the US; combines features of both the corporation and partnership
Limited liability company
92
Partners who have their liability for the firm's debts limited to the amount of their investment
Limited partner
93
The amount of the damages stipulated in a contract to be paid in the event one party breaches the contract
Liquidated damages
94
The person who executes a promissory note
Maker
95
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
Malpractice
96
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
Merchant
97
Those persons under legal age; by most states (but not all), the standard is under the age of 18
Minor
98
A less serious criminal offense, generally punishable by fine and/or imprisonment of less than one year
Misdemeanor
99
Stating an untrue fact
Misrepresentation
100
Items, required or proper and useful, for sustaining a human being at an appropriate living standard (example: food, clothing, and shelter)
Necessaries
101
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)
Negligence
102
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
Negotiable instrument (commercial paper)
103
The act of transferring ownership of a negotiable instrument to another party
Negotiation
104
A token award to symbolize vindication of the wrong done to the plaintiff, generally the award is $1.00
Nominal damages
105
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
Novation
106
A proposal to make a contract
Offer
107
The person to whom an offer is made
Offeree
108
The party who initiates, or makes, an offer
Offeror
109
Commercial paper made payable to the order of some named party; the word order or its equivalent must be used
Order paper
110
Law enacted by a local municipality
Ordinance
111
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
Partnership
112
The party to whom any negotiable instrument is made payable
Payee
113
All property which is not real property
Personal property
114
A written request initiating a civil suit
Petition (complaint)
115
The individual who initiates a civil action
Plaintiff
116
The consideration stipulated by contract, generally expressed in money or money's worth
Price
117
A party who appoints a second party to serve as an agent
Principal
118
A corporation formed by individuals to carry out some non governmental function
Private corporation
119
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
Process (summons)
120
An equitable doctrine that prevents the promisor trom revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment
Promissory estoppel
121
A negotiable instrument containing a promise to pay
Promissory note
122
A corporation formed to carry out government functions
Public corporation
123
An award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff
Punitive damages
124
An endorsement which limits the liability of the endorser
Qualified endorsement
125
Conforming an act which was executed without authority or an act which was voidable
Ratification
126
Land and those objects permanently attached to land
Real property
127
Canceling, annulling, avoiding
Recession
128
Refusal to accept
Rejection
129
An endorsement which prevents the use of the instrument for anything except the stated use
Restrictive endorsement
130
The annulment or cancellation of an instrument, act or promise by one doing or making the offer
Revocation
131
The transfer of title to goods from the seller to the buyer for a consideration called the price
Sale
132
The contracting of services rather than goods
Service contracts
133
Those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation
Shareholders (stockholders)
134
Federal legislation intended to promote competition among businesses by prohibiting restraint of trade
Sherman antitrust act
135
An individual who takes no active part in the management of a partnership, but has capital invested in the business
Silent partner
136
Any contract other than a formal contract, whether written, oral or implied
Simple contract
137
A business owned by one person who is subjected to claims of creditors
Sole proprietorship
138
One authorized by the principal to execute specific act(s)
Special agent
139
An endorsement which designates the particular person to whom payment is to be made
Special endorsement
140
A contract remedy by which the court requires the breaching party to perform the contract
Specific performance
141
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
Stare decisis
142
A statute originally enacted by English Parliament, and now enacted in some form in all the American states, listing certain types of contracts which could only be enforced if in written form
Statute of frauds
143
A law that restricts the period of time within which an action may be brought to court
Statute of limitations
144
Laws which are enacted by legislative bodies
Statutes
145
Those having title to one or more shares of stock in a corporation, combined, they represent ownership of the corporation
Stockholders (shareholders)
146
Is a creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status
Subchapter S corporation
147
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
Summons (process)
148
Person not party to a contract, but whom parties intended to benefit
Third party beneficiary
149
A private or civil wrong, other than by breach of contract, for which there may be action for damages
Tort
150
Court which conducts the original trial and renders its decisions
Trial court
151
Improper influence that is asserted by one dominant person over another, without the threat of harm
Undue influence
152
An agreement which at the current time is not enforceable by law
Unenforceable contract
153
Recognized as the most important statute in business law, it includes provisions which regulate certain sales of goods and negotiable instruments
Uniform commercial code
154
A contract fulfilled when an act is done in consideration for a promise
Unilateral contract
155
Exceeding the maximum rate of interest which may be charged on loans
Usurious
156
A contract which will be enforced by the court
Valid contract
157
An agreement of no legal effect
Void contract
158
A contract which would be an enforceable agreement, but due to circumstances, may be set aside by one of the parties
Voidable contract
159
Guarantees made by a seller that an article, good or service will conform to a certain standard or will operate in a certain manner
Warranties
