FBLA Business Law 2017 – Flashcards
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The second party's unqualified willingness to go along with the first party's proposal
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acceptance
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A legal way to settle contractual disputes by which one party agrees to accept less than the amount due as full payment
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accord and satisfaction
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The real power a principal gives to an agent
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actual authority
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A formal notice given directly to a party, usually using certified mail with a receipt
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actual notice
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A take-it-or-leave-it offer made by a party who holds most of the power in a bargaining session
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adhesion contract
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The body of rules created by government agencies
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administrative law
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When one spouse has sexual relations with someone outside of marriage
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adultery
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Related by marriage
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affinity
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A type of working relationship in which one person represents another person in a business transaction with a third party
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agency
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When the principal's actions lead the third party to believe that the agent is working for the principal
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agency by estoppel
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The person who has been authorized to do the work
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agent
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An agent who is appointed by another agent without the principal's authority to do so
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agent's agent
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An allowance for support paid to one person by the former spouse in a divorce
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alimony
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Parties try to resolve disagreements outside of the usual court system, by mediation, arbitration, conciliation, and negotiation
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alternative dispute resolution (ADR)
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The true interest rate of a loan
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annual percentage rate (APR)
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A declaration by the court that a marriage was never valid
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annulment
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Authority that a third party believes an agent has while acting on behalf of the principal
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apparent authority
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The U.S. courts of appeals in the federal system; hears appeals and reviews cases from the lower courts
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appellate court
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A formal hearing during which the defendant is read the indictment or information and is asked to plead guilty or not guilty
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arraignment
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Occurs when a person is legally deprived of his or her freedom
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arrest
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A legal document filed with the state to establish a corporation
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articles of incorporation
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Attempt to commit a battery
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assault
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When one corporation agrees to purchase the assets, such as property, buildings, and equipment, of a second corporation
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asset acquisition
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The transfer of a right under contract
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assignment
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A defense against negligence that is raised when the plaintiff knew of the risk and still took the chance of being injured
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assumption of risk
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Money or other property that is left with the court to assure that a person who has been arrested, but released, will return to trial
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bail
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The transfer of possession and control of personal property to another with the intent that the same property will be returned later
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bailment
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The legal process by which a debtor can make a fresh start through the sale of assets to pay off creditors
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bankruptcy
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The unlawful touching of another person
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battery
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The person named in an insurance policy to receive the proceeds of the policy
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beneficiary
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The illegal act of having two spouses at the same time
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bigamy
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A contract that contains two promises: one party promises to do something in exchange for the other's promise to do something else
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bilateral contract
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Formal evidence of ownership
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bill of sale
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When one party to a contract fails to perform the duties spelled out by the contract
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breach of contract
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Breaking and entering a house or other structure to commit a felony
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burglary
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The legal ability to enter into a contract
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capacity
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A business that transports persons, goods, or both
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carrier
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A corporation's official authorization to do business in a state
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certificate of incorporation
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A type of bankruptcy that allows businesses to reorganize their financial affairs and still remain in business
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Chapter 11 bankruptcy
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A form of bankruptcy that lets family farmers and fishing businesses create a plan for debt repayment that allows them to keep their operations running
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Chapter 12 bankruptcy
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A form of bankruptcy that permits individual debtors to reorganize their debts and develop payment plans
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Chapter 13 bankruptcy
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A type of bankruptcy that allows individual debtors to discharge all their debts and make a fresh start; ordinary bankruptcy
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Chapter 7 bankruptcy
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The property that is offered as a security interest
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collateral
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A process in which union and management representatives get together to work out issues such as wages, working conditions, and hiring and firing policies
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collective bargaining
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A statement in Article I of the Constitution giving Congress the power to regulate commerce among the states
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Commerce Clause
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A carrier that is compensated for providing transportation to the general public
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common carrier
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A set of laws made by the courts that provide a series of consistent rules that later courts must follow
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common law
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An informal type of marriage created by the parties themselves
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common-law marriage
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A defense against negligence which is raised when the carelessness of each party is compared to the carelessness of the other party
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comparative negligence
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Fair payment for the job performed
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compensation
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A corporation that owns many different types of companies
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conglomerate
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Related by blood
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consanguinity
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The exchange of benefits and detriments by the parties to a contract
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consideration
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When two or more companies join together to form a new corporation
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consolidation
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A country's formal document that spells out the principles by which its government operates
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constitution
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A federal law that requires creditors to inform consumers of the costs and terms of credit; Truth in Lending Act
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Consumer Credit Protection Act
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Any agreement enforceable by law
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contract
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A defense against negligence when the defendant can show the victim did something to help cause his or her own injuries
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contributory negligence
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A right granted to an author, composer, photographer, or artist to publish and sell an artistic or literary work
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copyright
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A person elected by shareholders to make broad policy decisions in the running of a corporation
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corporate director
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A person chosen by the directors to run the day-to-day affairs of a corporation
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corporate officer
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An entity with a legal authority to act as a single person distinct from its owners
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corporation
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A response to an offer in which the terms of the original offer are changed
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counteroffer
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An arrangement in which one may receive cash, goods, or services now and pay in the future
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credit
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The party who sells the goods on credit or lends the money
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creditor
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An offense committed against the public good, or society
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crime
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The use of information unlawfully obtained by computer to pressure a victim into granting a payoff to the blackmailer
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cyberblackmail
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Any criminal activity associated with a computer
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cybercrime
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The communication via computer or other electronic device of false data that damages a person's reputation
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cyberdefamation
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An unwelcome intrusion into the private matters of an individual carried out or sustained by a computer
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cyberinvasion of privacy
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The area of law that concerns computer and computer-related crimes
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cyberlaw
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A crime that involves using a computer to steal computer data stored in a digital formal
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cyberpiracy
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A crime in which a cybercriminal falsely adopts the identity of another computer user or creates a false identity on a computer Web site in order to commit fraud
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cyberspoofing
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The invasion, theft, falsification, misuse, or deletion of data stored in a computer
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cybertort
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Any illegal activity already in the criminal code committed by using a computer
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cybertrespass
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Disrupting, damaging, or destroying a Web site or computer network
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cybervandalism
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Payment recovered in court by a person who has suffered an injury
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damages
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The party who buys the goods on credit or borrows money
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debtor
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A written instrument that transfers title of ownership of property
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deed
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A failure in making timely payments on a loan
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default
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A person who is accused of a crime
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defendant
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Transferring of a duty under a contract
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delegation
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A lawsuit a shareholder can bring on behalf of the corporation to correct an injury to the corporation
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derivative suit
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A court session during which the judge tries to learn whether there are good reasons to keep an accused juvenile in custody
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detention hearing
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An encoded message that appears at the end of a contract created online
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digital signature
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A lawsuit a shareholder can bring against a corporation for denying his or her rights as a shareholder
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direct suit
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To show the intent not to live up to a contract
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disaffirm
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The act of ending contracts by mutual agreement
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discharge by agreement
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The unequal treatment of individuals based on sex, age, race, nationality, or religion
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discrimination
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When an employer has an employment policy that appears neutral on its surface, but has an unfair impact on members of a protected class
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disparate impact
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When an employer intentionally discriminates against an individual or a group of individuals belonging to a protected class
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disparate treatment
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When a partner is no longer associated with a firm
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dissociation
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The breakup of a partnership or any legal entity
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dissolution
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A declaration by the court that a valid marriage has come to an end; sometimes called dissolution of marriage
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divorce
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The Internet address of a business
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domain name
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When an agent works simultaneously for two competing principals
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double representation
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An order to a third party to pay money
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draft
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The person to whom an order is given to pay money in a draft
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drawee
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The person who orders money to be paid in a draft
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drawer
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The act of destroying somebody's free will by force, threat of force, or bodily harm
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duress
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An irrevocable right to the limited use of another's land
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easement
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The process of conducting business using electronic means, especially the Internet
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e-commerce (electronic commerce)
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A computerized system for transferring funds electronically rather than by writing checks
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electronic fund transfer (EFT)
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Freeing someone from the control of another; especially a parent's relinquishing authority and control over a minor child
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emancipation
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The right of the government to take private land for a public purpose
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eminent domain
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Based on the principle that each party should be free to end the employment relationship at any time without penalty
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employment-at-will
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The federal agency responsible for protecting the environment
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Environmental Protection Agency (EPA)
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Makes it illegal for banks and businesses to discriminate against credit applicants on the basis of their gender, race, marital status, national origin, religion, age, or because they get public assistance income
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Equal Credit Opportunity Act (ECOA)
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A standard that states that employers working in interstate commerce must pay women the same rate of pay as men holding the same type of job
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equal pay rule
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The interest or right that a person has in real property
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estate
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The rules used to determine the difference between right and wrong
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ethics
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Occurs when a landlord deprives a tenant of the possession of the premises
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eviction
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The person named to carry out the terms of a will (executor—male; executrix—female)
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executor/executrix
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Comes from the orders, commands, or instructions a principal explicitly gives an agent
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express authority
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A contract statement that may be oral or written
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express contract
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An oral or written statement, promise, or other representation about the quality of a product
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express warranty
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When a government seizes a privately-owned business to be used for a public service
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expropriation
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Requires creditors to correct billing errors brought to their attention
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Fair Credit Billing Act
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A federal law that grants people the right to know what is contained in their credit reports
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Fair Credit Reporting Act
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Prohibits certain practices by debt collectors
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Fair Debt Collection Practices Act (FDCPA)
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Part of the Department of Energy, this agency regulates electricity and natural gas
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Federal Energy Regulatory Commission (FERC)
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A major crime
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felony
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A relationship based on trust
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fiduciary relationship
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The cost of the loan in dollars and cents
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finance charge
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A merchant's written promise to hold an offer open for the sale or lease of goods
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firm offer
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Items of personal property attached in such a way that they become real property
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fixtures
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The act of not doing what you have the right to do
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forbearance
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The fraudulent making or material alteration of a writing
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forgery
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A license a company grants to a business or individual for the right to use its name and sell its products or services
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franchise
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A deliberate deception intended to secure an unfair and unlawful gain
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fraud
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An assurance that a defective product will be repaired or replaced without charge within a reasonable time
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full warranty
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The legal procedure through which a worker's earnings are withheld for payment of a debt
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garnishment
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An agent who has authority to perform any act within the scope of a business
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general agent
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An agreement that is true and genuine: a valid offer is met by a valid acceptance
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genuine agreement
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A bailment for the sole benefit of the bailor
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gratuitous bailment
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A person who possesses a negotiable instrument payable to "the order of" the person holding it or to "bearer"
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holder
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A holder who takes an instrument for value, in good faith, and without notice that the instrument is defective
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holder in due course
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Using a computer to steal financial, employment, educational, medical, and personal data
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identity theft
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Additional authority that allows an agent to perform reasonable acts necessary to carry out the express authority
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implied authority
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A contract that comes about from the actions of the parties; a contract that exists when an employer has said, written, or done something to lead an employee to reasonably believe that he or she is not an at-will employee
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implied contract
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A legal argument that holds that any employment relationship is based on an implied promise that the employer and employee will be fair and honest with one another
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implied covenant
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A guarantee of quality imposed by law
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implied warranty
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When one of three situations prevent the performance of a service contract: a death or illness that prevents the performance of a personal service contract; the destruction of the exact subject matter, or the means for performance; and illegality
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impossibility of performance
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Payment for losses suffered by an agent because of a principal's instructions
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indemnification
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A person who works for a proprietor to perform a particular task using his or her own tools and deciding the best way to do the job
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independent contractor
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The act of placing one's signature on an instrument, usually on the back, to transfer it to another
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indorsement
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A minor offense that is usually punishable with a fine and not with jail time
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infraction
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A court order that prevents a party from performing a specific act
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injunction
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When a corporate director or officer buys or sells shares in a corporation based on firsthand information about the corporation that is not available to the public
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insider trading
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The financial interest a policyholder has in the person or property that is insured
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insurable interest
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An agreement in which one party (the insurer) compensates another party (the insured) for any losses
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insurance
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An original work fixed in a tangible medium of expression
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intellectual property
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Actions that hurt, embarrass, or scare other people
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intentional tort
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A fee charged by creditors for lending money or extending credit
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interest
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To be without a will
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intestate
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Invitations to deal, trade, or make an offer
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invitations to negotiate
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When creditors begin the proceeding instead of the debtor
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involuntary bankruptcy
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Liability shared by two or more people
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joint liability
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A court's power to hear a case and make a judgment
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jurisdiction
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Treating people fairly and equally
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justice
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The unlawful taking of someone's personal property with the intent to keep the property away from that person
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larceny
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A system of rules of conduct established by a country's government to maintain stability and justice according to the values that are relevant to that country
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law
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The contract between a tenant and a landlord
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lease
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The tenant in a lease
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lessee
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The landlord in a lease
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lessor
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A temporary, revocable right to the limited use of another's land
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license
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A legal claim against another person's property as a security for a debt or loan to ensure it will be paid
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lien
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An entity with the legal authority to act as a single person distinct from its owners and combines the best features of a partnership and a corporation
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limited liability company (LLC)
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A registered partnership in which each partner is not liable for the acts of the other partners
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limited liability partnership (LLP)
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A partnership formed by two or more persons, with one or more general partners and one or more limited partners
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limited partnership
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Any written warranty that does not meet the requirements of a full warranty
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limited warranty
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The status of reaching the age of adulthood, 18 in most states
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majority
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The person who promises to pay money in a note
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maker
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Voluntary or involuntary killing of another person without intending to do so
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manslaughter
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Defined by most states and the federal government as the legal union of one man and one woman as husband and wife
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marriage
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When two companies join together, with one company keeping its corporate identity and the other company losing its corporate identity
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merger
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A person who has not yet reached the age of adulthood
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minor
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The terms stated in the acceptance must exactly mirror or match the terms of the offer
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mirror image rule
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A less-serious crime
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misdemeanor
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A business situation in which one person, company, or group of companies controls the market for a product or service
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monopoly
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The values that govern a group's ideas about right and wrong
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morality
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The intentional killing of another person
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murder
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A bailment in which both the bailor and bailee receive benefits
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mutual benefit bailment
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A tort that results when one person carelessly injures another
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negligence
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A written document giving legal rights that may be passed to others by endorsement or delivery; commercial paper
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negotiable instrument
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The transfer of an agreement in such a way that the transferee becomes a holder
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negotiation
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A divorce granted without either party having to prove the other party guilty of misconduct
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no-fault divorce
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A duty that cannot be delegated, or transferred, to another party
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nondelegable duty
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A written promise to pay money; promissory note
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note
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Notice usually given by publishing a notice in a local newspaper
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notice by publication
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Part of the Department of Energy, this agency regulates nuclear energy
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Nuclear Regulatory Commission (NRC)
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The federal government agency that regulates health and safety standards for companies in the United States
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Occupational Safety and Health Administration (OSHA)
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A proposal by one party to another intended to create a legally binding agreement
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offer
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An association of two or more persons to carry on as co-owners of a business for profit
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partnership
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A grant giving an inventor the exclusive right to make, use, or sell an invention for a period set by Congress
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patent
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The person to whom the promise is made in a note
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payee
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A program established by an employer or a union to provide income to employees after they retire
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pension plan
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Everything, other than real property, that can be owned
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personal property
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The party that accuses a person of a crime
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plaintiff
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The illegal act of having more than two spouses at the same time
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polygamy
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Any writing granting someone authority to act as an agent
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power of attorney
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The amount of money an insured pays for insurance coverage
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premium
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A written and signed legal contract couples make before getting married dealing with property and support issues
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prenuptial agreement
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The person who authorizes someone to represent his or her interests
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principal
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The process of validating and executing a will
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probate
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The principle that a promise made without consideration may nonetheless be enforced to prevent injustice
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promissory estoppel
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The government official who brings the case against the defendant
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prosecutor
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A document that contains a detailed explanation of the stock offering for potential investors
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prospectus
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When the link between negligent conduct and injury is strong enough to be recognized by the law
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proximate cause
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A legal principle that holds that nobody should be allowed to do something that harms the public
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public policy
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Money payments for damages that go beyond what the innocent party actually lost and that are designed to punish the wrongdoer
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punitive damages
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The act of agreeing to go along with a contract that could have been avoided
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ratification
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The ground and everything permanently attached to it
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real property
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A general description of the securities and of the company making the offer
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registration statement
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Payment for money spent by an agent on behalf of a principal
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reimbursement
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A refusal of an offer by the offeree that brings the offer to an end
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rejection
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A legal means of enforcing a right or correcting a wrong
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remedy
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When a creditor reclaims property on which it has a lien if the debtor does not make payment
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repossession
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A legal doctrine that holds that the master is responsible for the torts of his or her servants
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respondeat superior
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The taking back of an offer by the offeror
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revocation
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The responsibility for loss or damage to goods
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risk of loss
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The wrongful taking of someone's property by threatening or using violence
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robbery
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A loan which is backed up by property that the creditor can take if the loan is not repaid
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secured loan
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A monetary investment that seeks to make a profit solely because of another's efforts
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security
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A creditor's right to use collateral to recover a debt
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security interest
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When agents make deals that benefit themselves rather than their principal
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self-dealing
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A single unit of ownership in a corporation
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share
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An individual who owns shares of a corporation
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shareholder
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A government program that provides continuing income to workers and their dependents when their earnings stop or are reduced because of retirement, disability, or death
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Social Security
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A form of business that is owned and operated by one person
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sole proprietorship
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An agent whose authority is restricted to accomplishing only a specific job or purpose; limited agent
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special agent
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A bailment for the sole benefit of the bailee
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special bailmentí
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A law passed by a government body that has been made for the purpose of creating laws
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statute
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A state law that requires that certain contracts be in writing so that there is evidence that the contract exists and that it has certain definitive terms
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Statute of Frauds
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Establishes a time limit for suing in a civil case, based on the date when the breach occurred or was discovered
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statute of limitations
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When an individual or a corporation buys enough shares of stock in another corporation to take over control of it
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stock acquisition
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Life insurance that requires the payment of premiums until the face value is reached or the insured is deceased; also called ordinary life or whole life
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straight life insurance
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A legal doctrine that says some activities are so dangerous that liability will always follow any injury that results from those activities
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strict liability
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An agent lawfully appointed by another agent
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subagent
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The transfer of part of the term of a lease, but not the remainder of it, to someone else
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sublease
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A situation in which a party has, in good faith, completed the major requirements of a contract, leaving only a few minor details unfinished
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substantial performance
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An interest in the real estate they lease; leasehold estate
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tenancy
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An offer to do what you have agreed to do under a contract
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tender
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Life insurance issued for a particular period, usually five or ten years
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term life insurance
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The mental ability (being of sound mind) to create a will
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testamentary capacity
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The intention that the document is meant to be a last will and testament
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testamentary intent
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A person who dies with a will (testator—male; testatrix—female)
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testator/testatrix
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The person with whom the agent does business on behalf of the principal
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third party
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The right of ownership to goods
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title
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A private wrong committed by one person against another
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tort
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A person who commits a tort
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tortfeasor
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A distinctive mark, symbol, or slogan used by a business to identify and distinguish its goods or services
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trademark
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A legal device by which property is held by one person for the benefit of another
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trust
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A person who holds title to the property for another's benefit
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trustee
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An agreement in which the consideration is so out of line with the actual value of the subject matter and so unfair that shocks the court's conscience
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unconscionable contract
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An action or series of overly persuasive actions that make inappropriate use of one person's position of power over another person to create an agreement that is very favorable to the person with all the power
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undue influence
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A system of government payments to people who are out of work and looking for a job
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unemployment compensation
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A collection of laws that governs various types of business transactions
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Uniform Commercial Code (UCC)
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A contract that contains a promise by only one person to do something, if and when the other party performs some act
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unilateral contract
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An organization of employees formed to promote the welfare of its members
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union
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A legal duty placed on a business owner that requires the owner to be responsible for all losses experienced by the business
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unlimited liability
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A law restricting the amount of interest that can be charged
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usury law
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Willful or malicious damage to property
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vandalism
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A title that may be canceled if the injured party chooses to do so
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voidable title
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When a debtor files for bankruptcy to eliminate or reduce the burden of debt
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voluntary bankruptcy
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A guarantee, usually by a seller to a buyer, that a product will perform as promised
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warranty
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An implied warranty that goods will be fit for a specific use
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warranty of fitness for a particular purpose
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An implied warranty that goods are fit for the ordinary purpose for which the goods are sold
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warranty of merchantability
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A document that is signed during your lifetime that provides for the distribution of your property upon death
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will
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An insurance program that provides income for workers who are injured on the job or develop a disability or disease as a result of their job
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workers' compensation
