Introductory Business Law (CLEP) – Flashcards
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law
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a representation of a set of rules or principles established by government or other controlling body that members of society must follow and obey
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legal system
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a system of established laws
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civil law (code law)
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a legal system which has a single comprehensive code as the core of its law
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common law (case law)
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judge-made law, whereby judges make decisions on a case-by-case basis, and those decisions generate a body of rules and principles
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precedent
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previous decisions that set an example or guide for future cases
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stare decisis
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the notion that judges must make decisions based on precedent
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Congress
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the legislative branch of the US
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Supreme Court
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the highest federal court in the US
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judicial review
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the doctrine by which a higher court can overturn a decision made by a lower court
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checks and balances
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the system whereby each branch of the US government has specific power and authority so that they balance (or check) the power exercised by other branches
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Bill of Rights
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the first ten amendments to the US Constitution; meant to protect citizens from government intrusion
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Necessary and Proper Clause
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a clause in the US Constitution that gives power to Congress to make laws that are deemed "necessary" for the upholding of the Constitution
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Supremacy Clause
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a clause in the US Constitution that establishes that federal law supersedes all state laws
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uniform laws
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an effort to harmonize all state law by unifying legislation on a given topic
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Uniform Commercial Code ("UCC")
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an organization that seeks to establish uniform laws for various aspects of commercial law
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commercial speech
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speech regarding commercial or economic activities
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strict scrutiny
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a form of judicial review that requires a law to further "a compelling government interest" and that the law must serve a narrow purpose
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Due Process Clause
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a clause in the US Constitution that protects a person from being "deprived of life, liberty or property without *due process*"
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discriminatory laws
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laws that differentiate between people
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suspect classification
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a classification of groups meeting certain criteria suggesting they are the subject of discrimination
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quasi-suspect classification
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a suspect classification involves gender and legitimacy
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intermediate scrutiny
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a test used to determine a law's constitutionality; the law must be substantially tailored to meet an important government interest
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rational basis test
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a test, referring to the lowest levels of scrutiny; requires that laws must be rationally related to a legitimate government interest
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criminal law
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law that addresses crimes and punishment of crimes
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civil law
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law that regulates the relationships between parties
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federal district court
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the federal trial court in the US
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federal circuit court of appeals (federal court of appeals)
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the federal appeals court in the US
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writ of certiorari
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a formal appeals petition to bring a case before the Supreme Court
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original jurisdiction
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the power of a trials court to hear a case for the first time
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appellate jurisdiction
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the power of an appeals court to review decisions of a lower court
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remand
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an action by an appellate court to send a case back to a lower court for a new trial
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de novo
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a supreme court's power of interpreting legal rules, while not deferring to a lower court
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Federal Rules of Civil Procedures ("Federal Rules")
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governing procedures for filing a civil suit in federal court
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standing
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the legal right to bring a suit
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injury-in-fact
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a legally recognizable injury
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plaintiff
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the person bringing a suit
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defendant
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the person being sued in a suit
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pleadings
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the documents parties file in connection with their lawsuit
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complaint
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a filing by the plaintiff setting forth the basis of his lawsuit
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summons
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notice that a lawsuit has been filed against the defendant
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answer
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the defendant's response to a complaint
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affirmative defenses
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defenses that would prevent the plaintiff from holding the defendant liable
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counterclaims
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claims that the defendant has against the plaintiff
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Rule 12b(6) motion
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a motion by the defendant to dismiss a claim
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petit jury
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a jury that hears evidence at trial
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verdict
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the decision by the jury to hold (or not to hold) the defendant liable for the charges
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burden of proof
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the obligation for the plaintiff to establish his claim(s) first
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motion for dismissal (motion for a directed verdict)
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a motion by the defendant claiming that the plaintiff has not established sufficient evidence to prove his case
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deliberation
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the process of the jury retiring to a separate room to discuss the outcome of the case
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preponderance of the evidence
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the greater weight of the plaintiff's evidence against the defendant
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hung jury
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a jury that does not reach consensus
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judgement n.o.v (judgement notwithstanding the verdict)
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an overturning of the jury's verdict that requires the court to find evidence against the jury's verdict
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appellant
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the party seeking to appeal a decision
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appellee (respondent)
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the party against whom an appeal is taken out
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oral arguments
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arguments presented by each party in an appeals court
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res judicata
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final judgement on a case; prevents the parties from re-ligating the same action
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prosecution
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the body of officials that brings charges against a party
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indictment
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written charges against the defendant
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grand jury
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a group between 16-23 jurors who decide whether there is sufficient evidence to charge the defendant with a crime
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Reasonable doubt
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the standard of evidence required to establish the defendant's guilt
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writ of habeas corpus
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the defendant's request for a new proceeding to determine whether he is being unlawfully deprived of his liberty
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subject matter jurisdiction
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the authority of a court to hear cases of a specific subject matter
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personal jurisdiction
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the authority of a court to pass judgment on the parties involved in a case
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limited jurisdiction
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the courts' jurisdiction on only certain types of cases
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federal question jurisdiction
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the courts' power to hear cases arising under the Constitution, federal laws or US treaties
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diversity jurisdiction
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the courts' power to hear cases where the parties are citizens from different states, or one party is from a foreign country and the amount in question exceeds $75,000
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general jurisdiction
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the courts' power to hear any case not reserved for federal courts
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domicile
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a person's permanent residence
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long-arm statutes (long-arm jurisdiction)
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the court's power to exercise personal jurisdiction over defendants having sufficient minimum contacts within their state
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venue
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a geographical limitation that requires the plaintiff to bring his suit against the defendant in the geographic area in which he resides or where the events occurred
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Restatement of Contracts
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a set of statements reflecting generally agreed upon pronouncements of common law contract rules
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contract
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a promise of set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty
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express contract
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a promise stated in words, either oral or written
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goods
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all things movable at the time of a contract
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implied contract
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a promise inferred from a person's conduct or circumstances of the transaction
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promise
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an undertaking or commitment to act or refrain from acting in a specified way in the future
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executed exchange
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an exchange in which each party has fully performed his obligation and no promises have been made
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promisor
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the person who makes a promise
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promisee
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the person to whom a promise is made
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beneficiary
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a person who will benefit from a promise not made to him
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quasi-contract
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a transaction that creates a basis for recovery to prevent unjust enrichment
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unjust enrichment
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a situation in which one person unfairly benefits from a transaction
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restitution
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an action to avoid unjust enrichment
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mutual assent (meeting of the minds)
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agreement of both parties to a contract
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objective standard
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a neutral analysis of the words and conduct of parties in a case
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subjective standard
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an analysis of the words and conduct of an individual taking into account the mindset of the individual
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offer
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a proposal to enter into an agreement
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acceptance (of an offer)
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the agreement by the offeree to enter into an agreement with the offeror
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solicitation
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an invitation to make an offer
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revocation
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the termination of an offer by the offeror
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option contract
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an agreement that gives the purchaser of the contract the option to buy or sell a particular asset at a later date
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counteroffer
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a rejection of the original offer and a proposal of a new offer
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mirror image rule
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a rule that treats any response by the offeree that changes the terms of the agreement to be a rejection
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mailbox rule
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the rule that an acceptance is effective as soon as it is dispatched
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unilateral contract
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a contract in which one party has already performed his obligation
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bilateral contract
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a contract in which both parties have outstanding performances at the time of the contract's formation
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consideration
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the benefit that each party expects to get from the contract
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bargained-for exchange
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an exchange that is sought for by the promisor and is given by the promisee in exchange for the promise
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legal detriment
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a loss, harm, or relinquishment of something of value
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gift
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the voluntary transfer of property from one person to another
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past consideration
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a performance done before a contract's existence
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pre-existing duty
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a duty that a person is already obligated to perform
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illusory promise
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an agreement where one of the parties does not actually promise to to anything, thus lacking consideration
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token consideration
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a payment or promise given in exchange for something that has much greater value
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sham consideration
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consideration that is either of no or little value to the parties involved so as to form the basis for insufficient consideration
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promissory estoppel
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the doctrine allowing recovery of a promise even when there is insufficient consideration, when the reliance of the promise was reasonable
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capacity
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the legal ability to enter into a contract
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minors
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people below the age of majority (usually eighteen in most states)
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necessities
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goods or services that a minor reasonably needs for his livelihood
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mental incapacity
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a mental condition that is disabling
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third party beneficiary
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a third party that benefits from a contract and has rights to the contract, despite not being an active party on the contract
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intended beneficiary
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a third party that purposefully benefits from a contract between two other parties and has the legal right to enforce the contract
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incidental beneficiary
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a third party that benefits from a contract between two other parties but was not intended to benefit from the contract, so they do not have any legal rights to enforce the contract
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creditor beneficiary
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a third party to which the promisee owes a duty and who benefits from the performance of the promisor
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donee beneficiary
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a third party who receives a benefit from a contract, usually when the promisee confers a gift
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offset
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deduct amounts from damages
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assignment
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a transaction pursuant to which one part transfers his right under a contract to another
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obligee
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the person who initially assigns his rights to a contract
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assignor
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the person who has assigned his rights to a contract
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assignee
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the person to whom contract rights were assigned
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delegation
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a transfer of duty
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real party in interest
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the person who possesses the enforceable right against the obligor
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revocability
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relates to situations when an assignment can be taken away from the assignee
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irrevocable
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an assignment that is supported by consideration is...
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gratuitous assignment (revocable)
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an assignment that isn't supported by consideration
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delegator
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the person who delegates the duty
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Statute of Frauds
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a general rule referring to circumstances in which agreements must be in writing and by extension when oral arguments will be unenforceable
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surety
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a promise to pay the debt of another
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admission
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an statement whether in pleading, testimony, or otherwise that a contract was made
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rules of construction
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a variety of standards that a court will use to construe the meaning of a contract
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implied obligation of good faith
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the assumption that the parties of a contract will act in good faith and deal fairly
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Parol Evidence Rule
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a rule regarding the kinds of evidence admissable
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parol evidence
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evidence of commitments made prior to the actual written agreement
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integrated (contract)
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a contract that is a full, final, and complete representation of the parties' agreement
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condition
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an event that is not certain to occur
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condition precedent
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a condition that must occur before a duty to perform arises
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condition concurrent
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a condition that occurs at the same time as performance
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condition subsequent
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a condition that cuts off a pre-existing duty
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hindrance
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prevention of a condition's occurrence
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breach
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the promisor's failure to perform in accordance with the terms of the contract
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material breach
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a breach so central to the contract that is significantly impairs the contract's value to the promisee
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total breach
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a breach so substantial that it gives cause to cancel the contract and sue for damages
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anticipatory repudiation
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the unlawful indication of a party that he will not perform when performance is due
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retraction
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a withdrawal of a previous statement of repudiation
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demand for assurance
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a written request for reasonable assurances regarding a party's intention to perform
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expectation damages
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damages designed to approximate the amount necessary to compensate the party if the breach had not occurred
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direct damages
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the difference between the value of the performance a party should have received and the value of the performance the party actually received
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consequential damages
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losses that result from other transactions that are dependent upon the breached contract
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duty to mitigate
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the duty of someone who has been wronged to make reasonable efforts to limit the resulting damages
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economic waste
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a situation in which replacement or completion costs are significantly disproportionate to the actual harm caused by the breach
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diminution in value
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the difference between the value of the property as substantially complete and the value of the property upon full performance
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reliance damages
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damages representing the amount of money a party has spent in justifiable reliance on a contract
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specific performance
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an order from the court to perform the contract pursuant to its terms
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injunction
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an order prohibiting a party from engaging in certain conduct
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duress
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an improper threat that leaves the victim no reasonable alternative but to comply with an a agreement
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undue influence
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a situation in which one party takes unfair advantage of another to persuade him to enter into a contract
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mistake
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an error about a fact in existence at the time that the contract was made
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mutual mistake
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a mistake where both parties are mistaken
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unilateral mistake
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a mistake where only one party is mistaken
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misrepresentation
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an assertion that is not in accord with the facts
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fraud
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a misrepresentation made with intent
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unconscionability
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excessive one-sidedness and unfairness of a contract towards one party
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substantive unconscionability
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unconscionability where the terms of the contract are excessively harsh or incomprehensible
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procedural unconscionability
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unconscionability in the conditions of the contract formation
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adhesion
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a contract presented on a "take it or leave it" basis
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impossibility
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an excuse for non-performance under a contract based changes in circumstances
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impracticability (impracticality)
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occurs when an event occurs after the contract is executed that renders performance excessively difficult
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frustration of purpose
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when unexpected events arise that cause a contract to be impossible to perform
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unforeseen event
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an event that the parties did not contemplate when executing the contract
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supervening illegality
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when a change in the law makes a contract illegal by nature
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mutual rescission
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occurs when both parties agree to rescind the contract
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unilateral rescission
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occurs when one party desires to rescind the contract
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executory contract
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a contract that has not been fully performed
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novation
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occurs when a new party assumes the obligations and benefits of a contract, discharging the prior contract
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accord
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represents an agreement pursuant to which the original promisee agrees to accept different performance from the original promisor in exchange for the release of the original agreement
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illegal contract
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a contract that violates the law or a statue
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in pari delicto
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a term used to indicate that two parties are equally at fault
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ethics
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moral principles of right and wrong
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deontological
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an ethical position that ethical behavior is guided by duties or obligations
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natural rights
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irrevocable rights that each person has under the law
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categorical imperative
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an ethical position that mandates particular actions, regardless of personal preferences
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consequentialism
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the view that ethical behavior should be treated in terms of its consequences
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utilitarianism
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the view that an action is justified as long as it does the greatest good for the greatest number of people
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legal ethics
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the rules of ethics that govern the practice of law and the conduct of lawyers
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malpractice
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conduct that is improper or unethical
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attorney/client privilege
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protects communications between an attorney and his client so that neither party can be compelled to disclose such communications in court
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concurrent conflict of interests
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a situation in which the representation of one client will adversely affect another
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corporate social responsibility
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the idea that corporations should be concerned with the impact of their policies on the broad range of stakeholders or constituents
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shareholder primacy
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the idea that a corporation only owes a duty to shareholders and their financial concerns
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social entity (stakeholder) theory
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the idea that a corporation has a social and ethical responsibility to operate in a manner that benefits other stakeholders
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administrative agencies
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agencies designated to perform specific legislative functions and administer particular federal statutes
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enabling acts
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acts that establish an agency's goals & powers and grant the agency its authority to make rules
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Federal Information Act
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requires agencies to provide citizens with the information they request, unless the information falls within certain exempted categories
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administrative law judges
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judges that deal solely with administrative law
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environmental law
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laws that protect the environment and preserve environmental resources
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Environmental Protection Agency
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an agency established in 1970 to oversee pollution control efforts
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air pollution
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chemicals and other harmful pollutants in the atmosphere
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remediation efforts
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actions designed to permanently reduce the health and safety risks associated with a site
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blue sky laws
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state laws aimed at regulating securities transactions
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Securities and Exchange Commission
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an agency created to regulation federal securities laws
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Section 5 (of the Securities Act)
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a part of the Securities Act that prohibits the sale or offering of securities not registered with the SEC
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investment contracts
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a contract where one party invests money and is led to expect profits solely from the promotor
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prospectus
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a document that must be delivered to investors prior to their securities' purchase
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public company
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a company that has registered its securities with the SEC
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Section 12(a)(1)
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imposes civil liability on anyone who offers or sells a security in violation of Section 5
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Securities Act & Securities Exchange Act
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laws that regular the offers and sales of securities
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statutory seller
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a person who illegally solicited or sold securities to a purchaser
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Section 11 (of the Securities Act)
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imposes civil liability for material misrepresentations or omissions in the registration statement
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registration statement
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a statement by a company to register its securities with the SEC
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expert
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accountants and lawyers who render a professional opinion or certification in the registration statement
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negative causation
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a defense stating that the plaintiff's damages were caused by something other than the misrepresentation or omssion
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due diligence defense
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a defense showing that an expert has no reasonable basis to believe that the registration statement contained material misstatements or omissions
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expertised portions
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portions of the registration statement that are certified by an expert such as financial statements or legal opinions
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Section 12(a)(2)
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imposes civil liability for material misstatements or omissions in a prospectus or oral statement(s) that relate to a prospectus
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Section 4 (of the Securities Act)
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exempts certain transactions from registration, 1) by any other person that an issuer or underwriter, 2) an transaction that does not involve a public offering
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private placement
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a transaction that does not involve a public offering
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Regulation D
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provides specific categories of transactions that qualify as private placements
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accredited investor
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institutional investors, people with over $1M in net worth, venture capital firms, trusts with assets over $5M in worth, directors and executive officers of the issuing company
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stock exchanges
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organization that provide a location for the purchase and sale of securities
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over-the-counter market
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securities transactions that occur by computer or phone
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reporting company
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a company that is subject to the Exchange Act
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proxy statments
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information statements sent to investors whenever they solicit proxies
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tender offers
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offers made or purchase all or a portion of the shares of a specific company
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control persons
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directors, certain officers, and owners of more than ten percent of a corporation's shares
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short swing profits
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profits made by a control person when purchasing and selling his shares within a six-month period
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insider trading
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trading of public company's stock or other securities by individuals with access to non-public information about the company
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Scienter
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an intent to deceive or defraud
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misappropriation theory
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anyone who steals information from his employer and trades on that information in any stock
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trust
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a group of corporations or businesses that combines together in order to enhance their economic strength and market power
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monopoly
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a trust formed to dominate an industry
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Sherman Act
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an act prohibiting agreements among corporations that would restrain trade or create monopolization in an industry
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rule of reason
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a doctrine used to assess whether a particular restraint of trade is reasonable
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horizontal agreements
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transactions between businesses in competition with each other
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price fixing
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agreements between competitors to set particular prices for their products
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production quota
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agreements to restrict the supply of product in order to drive up the prices of such products
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group boycotts
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agreements to refrain from doing business with a particular person(s) or entity in order to force the party to pay higher prices
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market division
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agreements among competitors to "divide the market" by splitting up geographic areas in order to eliminate competition in those areas
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vertical agreements
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agreements between buyers and sellers
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tie-in agreements
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agreements whereby a seller agrees to sell one product to a customer, but only on the condition that the customer purchases another product
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exclusive distributor agreements
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agreements that grant an entity an exclusive right to manufacture a product within a given area
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exclusive dealing agreements
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agreements requiring a buyer to resell products to a specific manufacturer
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price discrimination
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charging different buys different prices for the same product
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Clayton Act
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an act prohibiting mergers and acquisitions that may reduce competition or create a monopoly
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employment law
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the collection of state and federal laws that govern the employment relationship
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employee-at-will
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employment relationship in which the employer may terminate the relationship at any time for any reason
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Fair Labor Standards Act
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an act that establishes a minimum wage, as well as policies for overtime pay
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Family and Medical Leave Act
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an act that requires the government and certain private employers to give leave for certain family and medical emergencies
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workers compensation
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compensation for employees who have work-related injuries without having to engage in litigation
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unemployment compensation
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a set time of compensation for employees when they become unemployed through no fault of their own
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Social Security Act
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an act to provide retirement and disability benefits to employees
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defined benefit plans
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benefit plans in which employers make payments to retired employees based on the length of their employment and the wages they received
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defined contribution plans
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benefit plans in which employers make contributions to an employee's account and upon retirement, the employee receives benefits
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Occupational Safety and Health Act (OSHA)
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an agency that works with employers and employees to ensure compliance with workplace safety standards
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collective bargaining
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negotiations between employers and groups of employees to agree on employment compensation and other benefits
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National Labor Relations Act
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an act that grants employees the right to bargain as a group
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creditor
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a person who extends credit or a loan and hence the person to whom a debt is owed
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collateral
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the property that is the subject of a security interest
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debt
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a specified amount of money owed to the creditor
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security interest
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an interest in property or collateral granted in order to ensure payment of a debt or obligation
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unsecured creditor
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a creditor who does not have a security interest in any of the debtor's property or assets
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mortage
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a security interest in real property
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foreclosure
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the creditor's right to take possession of the property after a default under the mortgage
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equity of redemption
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the debtor's right to recover his property by paying the full amount of the debt as well as any costs incurred by the creditors
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lien
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the right to hold a security interest on a debtor's property
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secured transaction
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an agreement pursuant to which a creditor receives a security interest in some property or asset in exchange for lending money
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financing statement
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a description of the collateral and the creditor's security interests in the collateral
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United States Bankruptcy Code
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federal law governing bankruptcy proceedings
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voluntary bankruptcy
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bankruptcy initiated by the debtor
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involuntary bankruptcy
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bankruptcy initiated by the creditor
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plan of reorganization
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a plan for termination or reduction of the debtor's debts
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product liability
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a term used to describe the liability imposed on sellers and other persons for compensating people who have been injured as the result of a defective product
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manufacturing defect
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a defect that occurs when a product is incorrectly manufactured in a way that makes it unreasonably dangerous to consumers
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design defect
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a defect that arises when a product's design itself poses a danger to consumers
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inadequate warning defect
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a defect that fails to provide sufficient warnings concerning its dangers
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consumer protection
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laws and statutes aimed at addressing issues of concern to consumers
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Federal Trade Commission
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a federal agency established to promote consumer protection and reduce unfair competition among businesses
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unfair competition
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the laws dealing with actions that have a negative impact on a business interest and potentially places businesses at a competitive disadvantage
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trademark
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a distinct mark or symbol that identifies a business and its products
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trademark infringement
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a violation of the exclusive rights attached to a trademark
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trade secrets
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formulas, practices, processes, designs, and similar confidential information that give businesses a competitive advantage in the marketplace
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international business law
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law governing the business relationships and transactions between parties of different countries
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bilateral treaties
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treaties entered into between two nations
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multilateral treaties
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treaties among several people that seek to allocate rights and responsibilities among the parties
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bilateral investment treaties
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treaties between two nations addressing investment concerns
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expropriation
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the taking of private property for a purpose deemed to be in the public interest
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exports
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goods created in the U.S. and shipped & sold in other countries
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imports
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goods created elsewhere, but shipped and sold in the U.S.
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tariffs
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taxes on imports
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free trade agreements
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agreements which eliminate or reduce tariff rates on goods being imported
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tort
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a civil wrong that enables a person to bring a lawsuit
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intentional tort
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a tort or civil wrong resulting from some deliberate conduct or from a situation where the conduct is substantially certain to occur
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negligence
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a tort constituting a breach of duty owed by one person to another that causes harm to the non-breaching party's person or property
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prima facie
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"on the first appearance", a fact presumed to be true unless disproved
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strict liability
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a tort for which a person will be held liable regardless of fault
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battery
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improper touching of a person
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assault
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a threat of committing battery
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reasonable apprehension
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fear that is justified under the circumstances
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transferred intent
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when the defendant intends to commit a tort against one party but commits the tort against a different person, commits a different tort against the same person, or commits a different tort against a different person
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intentional infliction of emotional distress
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when a person causes extreme emotional distress to another person
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self-defense
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actions that are believed to be necessary to protect oneself from harm
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defense of others
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actions designed to protect another person
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standard of care
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an objective standard describing an average prudent person's actions exercising reasonable care
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Res Ipsa Loquitor
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"the thing speaks for itself", a circumstance in which an action generally occurs as a result of a breach of someone's duty
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actual case
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a finding that the plaintiff's injury was the "cause-in-fact" or "but-for" cause of the defendant's actions
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proximate case
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a test to limit actual cause to those consequences that a plaintiff can prove represented a foreseeable result of the defendant's actions
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intervening case
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an event that occurs after a defendant's actions that will contribute to a plaintiff's harm
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contributory negligence
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a defense to negligence that refers to situations in which the plaintiff's own negligence has contributed to his harm
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comparative negligence
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a defense that reduces the damages a plaintiff can recover by the amount the plaintiff contributed to his harm
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defamation
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the damaging of someone's reputation either by defamatory language or a publication of such language
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defamatory language
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language that has a negative impact on someone's reputation
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libel
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defamatory language that is written or permanently recorded
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slander
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spoken defamatory language
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interference with business relations
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an action against someone who deliberately interferes with someone else's economic relationship
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vicarious liability
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situations where one person is liable for the torts of another
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respondeat superior
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the doctrine that makes employers liable for the torts of their employees when they are committed within the scope of the employment relationship
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agency
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a relationship where one person intends for another person to act on his behalf
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principal
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the person who authorizes an agent to create one or more legal relationships with a third party
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agent
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one who is authorized to act on the behalf of another
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duty of loyalty
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the doctrine that an agent cannot act in ways that benefit himself, to the detriment of the principal
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duty of obedience
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the doctrine that an agent must obey all reasonable actions from the principal
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duty of care
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the doctrine that an agent must carry out his duties on behalf of the principal in good faith and reasonable care
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actual authority
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authority that an agent reasonably believes he has based on his interactions with the principal
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implied actual authority
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authority that an agent necessarily has to carry out the express statement of authority from the principal
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acquiescence
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when the principal is notified of an agent's performance and fails to object to it within a reasonable amount of time
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apparent authority
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authority that the principle leads a third party to reasonably believe that an agent has to act on his behalf
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partnership
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an association of two or more people who enter into a business for the purpose of making a profit
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sole proprietorship
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one person entering into a business to make a profit
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partnership by estoppel
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a partnership that arises when a person indicates to a third party that he is a partner, when he is, in fact, not
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partnership property
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all property brought into a partnership, or subsequently acquired for the account of the partnership
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general partnership
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a partnership in which the participants have personal liability
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dissolution
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a change in the relation of the partners caused by any partner ceasing to be associated with the partnership
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limited partnership
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a form of partnership where there are one or more limited partners and one or more general partners
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limited liability partnership
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a partnership in which some or all partners have only limited liability
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limited liability company
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an entity in which the people who have made a financial investment in the company do not have personal liability
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corporation
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an artificial entity created by law and viewed as having an existence distinct from its owners and managers
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incorporation
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the process of filing a certificate to form a corporation
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bylaws
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the law that represent the operating agreement for the corporation
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direct suit
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a suit brought on because the corporation or its officers or directors need to remedy a harm inflicted on an individual shareholder
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derivative suit
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a suit brought by a shareholder on behalf of the corporation
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dividend
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a distribution by the corporation to shareholders issued in proportion to their share ownership
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buyer
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a person who buys or enters into a contract to buy goods
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merchant
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a person who ordinarily deals in goods of the kind sold or otherwise by his occupation has the knowledge or skills relevant to the goods involved in the transaction
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sale
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a contract pursuant to which a buyer purchases goods from a seller for a price
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seller
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a person who sells or enters into a contract to sell goods
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express warranty
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an agreement made by the seller to the buyer that goods will conform to such an agreement
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implied warranty of merchantability
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a warranty that represents an assurance that the goods will pass without objection in the trade
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implied warranty of fitness for a particular purpose
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an implied warranty when a buyer relies upon the seller to select the goods to fit a specific request
