Unit Two Test Flashcards
(129 cards)
1
Q
credit sale of goods or a secured loan that provides special protection for the creditor
A
secured transaction
2
Q
property right that enables the creditor to take possession of the property if the debtor does not pay the amount owed
A
security interest
3
Q
property pledged by a borrower as security for a debt
A
collateral
4
Q
person who is owed money, also may be a secured party
A
creditor
5
Q
person owed the money, whether as a seller or a lender, in a secured transaction in personal property
A
secured party
6
Q
buyer on credit
A
debtor
7
Q
agreement of the creditor and the debtor that the creditor will have a security interest
A
security agreement
8
Q
consideration or antecedent debt or security given in exchange for the transfer of a negotiable instrument or creation of a security interest
A
value
9
Q
the security interest in the goods a seller on credit that become the collateral for the creditor/seller
A
purchase money security interest (PMSI)
10
Q
goods used or bought primarily for personal, family, or household use
A
consumer goods
11
Q
goods acquired after a security interest has attached
A
after acquired goods
12
Q
claim changing or shifting stock of goods of the buyer
A
floating lien
13
Q
security interest with priority because of filing, possession, automatic, or temporary priority status
A
perfected security interest
14
Q
stored goods under the exclusive control of a warehouse but kept on the owners premises rather than in the warehouse
A
field warehousing
15
Q
perfection given by statute without specific filing or possession requirements on the part of the creditor
A
automatic perfection
16
Q
perfection given for a limited period of time of creditors
A
temporary perfection
17
Q
brief statement that gives sufficient info to alert third persons that a particular creditor may have a security interest in a collateral described
A
financing statement
18
Q
document or record, which may be requested by a paid-up debtor, stating that a security interest is no longer claimed under the specified financing statement
A
termination statement
19
Q
proportionately, or divided according to a rate or standard
A
pro rata
20
Q
creditor whose interest attached first has priority in the collateral when two creditors have a secured interest
A
first in time provision
21
Q
rule of priorities that holds that first in time in perfecting a security interest, mortgage, judgement, lien, or other property attachment right should have priority
A
first to perfect basis
22
Q
creditors right to repossess the collateral without judicial proceedings
A
self-help repossession
23
Q
violation of the law in the repossession of the collateral
A
breach of the peach
24
Q
pledge or guaranty to pay the debt or be liable for the default of another
A
suretyship
25
promisor
obligor
26
obligor of a suretyship, primarily liable for the debt or obligation of the principal debtor
surety
27
agreement or promise to answer for a debt, an undertaking to pay the debt of another if the creditor first sues the debtor
guaranty
28
one who undertakes the obligation of guaranty
guarantor
29
person or firm who employs an agent, the person who, with respect to a surety, is primarily liable to the third person or creditor, property held in trust
principal
30
original borrower for debtor
principal debtor
31
buyer on credit
debtor
32
promisee who can claim the benefit of the obligation
obligee
33
person who is owed money, also may be a secured party
creditor
34
form of guaranty in which creditor cannot proceed against guarantor until after proceeding against debtor
guaranty of collection
35
agreement that creates the same obligation for the guarantor as a suretyship does for a surety, a guaranty of payment creates an absolute guaranty
absolute guaranty
36
absolute promise to pay when a debtor defaults
guaranty of payment
37
agreement by one person, for consideration, to pay another person a sum of money in the event that the other person sustains a specified loss
indemnity contract
38
agreement or provision in an agreement that one party shall not be held liable for loss, the right of the surety to demand that those primarily liable pay the claim for which the surety is secondarily liable
exoneration
39
right of a party secondary liable to stand in the place of the creditor after making payment to the creditor and to enforce the creditors right against the party primarily liable in order to obtain indemnity from such primary party
subrogation
40
right of a person secondarily liable to require that a person primarily liable pay for loss sustained when the secondary party discharges the obligation that the primary party should have discharged, an undertaking to pay another a sum of money to indemnity when loss is incurred
indemnity
41
right of a co-obligor who has paid more than a proportionate share to demand that other obligors pay their pro rate share
contribution
42
sureties for the same debt
co-sureties
43
intentional making a false statement of fact, with knowledge or reckless indifference that it is false with resulting reliance by another
fraud
44
failure to volunteer information not requested
concealment
45
bailment given as security for the payment of a debt or the performance of an obligation owed to the pledgee
pledge
46
commercial device used to guarantee payment to a seller, primarily in an international business transaction
letter of credit
47
party who issues a document such as a letter of credit or a docuement of title such as a warehouse receipt of bill of lading
issuer
48
letter of credit for a contractor ensuring he will complete the project as contracted
standby letter
49
bank that tells beneficiary that letter of credit has been issued
advising bank
50
will honor the letter of credit from the domestic bank of the buyer
correspondent bank
51
court of special jurisdiction to determine bankruptcy issues
bankruptcy courts
52
liquidation form of bankruptcy under federal law
chapter 7 bankruptcy
53
process of converting property into money whether of particular items of property or of all the assets of a business or an estate
liquidation
54
reorganization form of bankruptcy under federal law
chapter 11 bankruptcy
55
proceeding of consumer debt readjustment plan bankruptcy
chapter 13 bankruptcy
56
proceeding in which the debtor files the petition for relief
voluntary bankruptcy
57
new standard under the reform act that requires the court to find that the debtor does not have the means to repay creditors, goes beyond the past requirements of petitions being granted on the simple assertion of the debtor saying i have debts
means test
58
proceeding in which a creditor or creditors file the petition for relief with the bankruptcy court
involuntary bankruptcy
59
in good faith, without any fraud or deceit
bona fide
60
order to prevent creditors from taking action such as filing suits or seeking foreclosure against the debtor
automatic stay
61
the order from the bankruptcy judge that starts the protection for the debtor, when this is entered by the court, the debtors creditors must stop all proceedings and work through the bankruptcy court to recover debts. Court finding that creditors have met the standards for bankruptcy petitions
order of relief
62
impartial person elected to administer the debtors estate
trustee in bankruptcy
63
transfer of property by a debtor to one or more specific creditors to enable these creditors to obtain payment for debts owed
preferences
64
excess of debts and liabilities over assets, or inability to pay debts as they mature
insolvency
65
comparison of assets to liabilities made to determine solvency
balance sheet test
66
certain transfer of money or security interests in the time frame just prior to bankruptcy that can be set aside if voidable
preferential transfers
67
full time corporate employee or a director or their relatives
insider
68
creditors rights to payment
claim
69
written statement, signed by the creditor or an authorized representative, setting forth any claim made against the debtor and the basis for it
proof of claim
70
order of the bankruptcy court relieving the debtor from obligation to pay the unpaid balance of most claims
discharge in bankruptcy
71
a plan of security against risks by charging the loss against a fund created by the payments made by policyholders
insurance
72
promisor in an insurance contract
insurer
73
insurer
underwriter
74
person to whom the promise in an insurance contract is made
insured
75
paper evidencing the contract of insurance
policy
76
agent of an insurance company
insurance agent
77
independent contractor who is not employed by any one insurace company
insurance broker
78
right of a party secondarily liable to stand in the place of the creditor after making payment to the creditor and to enforce the creditors right against the party primarily liable in order to obtain indemnity from such primary party
subrogation
79
peril or contingency against which the insured is protected by the contract of insurance
risk
80
policies that cover perils relating to the transportation of goods
marine insurance
81
policies that cover transportation of goods in vessels in international and coastal trade
ocean marine
82
insurance that covers domestic shipments of goods over land and inland waterways
inland marine
83
insurance that covers physical damage on a freight-moving vessel
hull insurance
84
insurance that protects a cargo owner against financial loss if goods being shipped are lost or damaged at sea
cargo insurance
85
covers the shipowners liability if the ship causes damage to another ship or its cargo
liability insurance
86
insures that shipowner will receive payments for transportation charges
freight insurance
87
a contract that indemnifies the insured for property destruction or damage caused by fire
fire insurance policy
88
combination of standard fire insurance and comprehensive personal liability insurance
homeowners insurance policy
89
clause requiring the insured to maintain insurance on property up to a stated amount and providing that to the extent that this is not done, the insured is to be deemed a coinsurer with the insurer, so that the latter is liable only for its proportionate share of the amount of insurance required to be carried
coinsurance clause
90
policy written for a specified number of years that terminates at the end of that period
term insurance
91
ordinary life insurance providing lifetime insurance protection
whole life insurance
92
sum paid the insured upon the surrender of a policy to the insurer
cash surrender value
93
insurance that pays the face amount of the policy if the insured dies within the policy period
endowment insurance
94
provision for payment if double the amount specified by the insurance contract if death is caused by an accident and occurs under specified circumstances
double indemnity
95
any incapacity resulting from bodily injury or disease to engage in an occupation for remuneration or profit
disability
96
person to whom the proceeds of a life insurance policy are payable, a person for whose benefit property is held in trust, or a person given property by a will, the ultimate recipient of the benefit of a funds transfer
beneficiary
97
provision that after the lapse of a specified time the insurer cannot dispute the policy on the ground of misrepresentation or fraud of the insured or similar wrongful conduct
incontestability clause
98
relationship that exists between a person identified as a principal and another by virtue of which the latter may make contracts with third persons on behalf of the principal
agency
99
person or firm who is authorized by the principal or by operation of law to make contracts with third persons on behalf of the principal
agent
100
person or firm who employs an agent, person who, with respect to a surety, is primarily liable to the third person or creditor, property held in trust
principal
101
contractor who undertake to perform a specified task according to the terms of a contract but over whom the other contracting party has no control except as provided for by the contract
independent contractor
102
agent authorized to transact a specified transaction or to do a specific act
special agent
103
agent authorized by the principal to transact all affairs in connection with a particular type of business or trade or to transact all business at a certain place
general agent
104
agent authorized by the principal to do all acts that can lawfully by delegated to a representative
universal agent
105
form of agency in which an agent has been given or paid for the right to exercise authority
interest in the authority
106
form of agency in which an agent is given an interest in the property with which that agent is dealing
interest in the subject matter
107
authorization of an agent to perform a certain act
express authorization
108
written authorization to an agent by the principal
power of attorney
109
agent authorized to act for another under a power of attorney
attorney in fact
110
authority of an agent that is reasonably necessary to execute express authority
incidental authority
111
authority of an agent to do any act that, according to the custom of the community, usually accompanies the transaction for which the agent is authorized to act
customary authority
112
appearance of authority created by the principal's words or conduct
apparent authority
113
principal whose identity is made known by the agent as well as the fact that the agent is acting on the principals behalf
disclosed principal
114
principal whose existence is made known identify is not
partially disclosed principal
115
principal on whose behalf an agent acts without disclosing to the third person the facts of agency or the identity of the principal
undisclosed principal
116
imposing liability for the fault of another
vicarious liabilty
117
doctrine that the principal or employer is vicariously liable for the unauthorized torts committed by the agent or employee while acting within the scope of the agency or the course of the employment respectively
respondeat superior
118
salesperson
soliciting agent
119
agent with authority to make contracts, person with whom the buyer deals
contracting agent
120
doctrine in which the employer has historically been allowed to terminate the employment contract at any time for any reason or for no reason
employment at will doctrine
121
right of an employer to use in business without charge an invention discovered by an employee during working hours and with the employers material and equipment
shop right
122
union strikers trying to enforce bargaining demands when an impasse has been reached in the negotiation process for a collective bargaining agreement
economic strikers
123
legal presentations in front of a business notifying the public of a labor dispute
primary picketing
124
illegal tactic of employees massing together in great numbers to effectively shut down entrances of the employers facility
mass picketing
125
picketing an employer with which a union has no dispute to persuade the employer to stop doing business with a party to the dispute, generally illegal under the NLRa
secondary picketing
126
a plan providing individuals accounts for each employee participant with benefits defined solely on the amounts contributed by each employee with matching contributions by the employer
defined contribution plan
127
an employer established pension fund obligated the employer to make specified future payments to participants upon retirement
defined benefit plan
128
an insurance plan to protect employees covered by defined benefit plans in case an employer is unable to meet its payment obligations from the employers pension fund
pension benefit guaranty corporation
129
plan to have a diverse and representative workforce
affirmative action plan
