Business Law Flashcards
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Administrative Agencies
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commissions or boards that have the power to regulate particular matters or implement laws
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Antitrust Laws
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laws designed to prevent an individual, corporation, or other group from controlling too large a share of the market for a product
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Balloon Payment
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payment more than twice the normal installment payments
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Bearer
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payee of the instrument made payable to whomever is in possession
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Acceleration Clause
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clause allowing entire principle to be due
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Carrier
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transporter of goods, people, or both
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Certificate of Deposit
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an acknowledgement by a bank of a receipt of money with an engagement to repay
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Check
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a draft payable on demand and drawn on a bank
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Common Law
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law based upon prior decisions of the judiciary
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Compensatory Damages
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amount equal to the loss sustained
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Cosignor
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is a person who is guarantor of the contract, especially a promissory note
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Damages
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sum of money a wrongdoer must pay to an injured party
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Debt
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obligation to pay money
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Default
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breach of contractual obligation other than money
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Duress
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obtaining consent to a contract by threatening to do harm to a person or members of the person's family
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Embezzlement
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fraudulent conversion of property lawfully possessed
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Fiduciary
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a person who handles the money of another for the other person's benefit
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Finance Charge
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total amount paid for credit
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Injunction
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a permanent order forbidding activities detrimental to others
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Law
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a rule of civil conduct, commanding what is right and prohibiting what is wrong
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Limited Warranty
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written warranty, no a full warranty
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Liquidated Damages
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sum fixed by contract for breach where actual damages are difficult to measure
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Negotiable Instrument
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a writing drawn in special form, which can be transferred as a substitute for money or an instrument of credit
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Administrator
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person appointed by court to administer estate of interstate; personal representative
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Offer, Acceptance
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must be present to have a contract between two parties
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Order Paper
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commercial paper made payable to the order of the named person
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Ordinances
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laws created by cities
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Personal Property
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movable property; interest less than complete ownership in land or rights to money
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Plaintiff
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the party who begins civil lawsuit
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Presentment
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the demand for acceptance or payment made upon the maker, acceptor, drawee, or other payer
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Stare Decicis
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the doctrine which makes higher court decisions binding on lower courts
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Uniform Commercial Code
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A set of uniform laws, consistently adopted and applied by most states that governs commercial transactions including commercial paper, bank deposits, bills of lading, investment securities and more.
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Usury Laws
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laws fixing the maximum rate of interest that may be charged on loans
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ADA (Americans with Disabilities Act)
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prohibits employment discrimination against qualified people with disabilities
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Annuity Insurance
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contract that pays monthly income to insured while alive
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Common Stock
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stock that entitles owner to vote
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Agency
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contract under which one party is authorized to contract for another
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Agent
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person appointed to contact on behalf of another
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Articles of Partnership
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written partnership agreement
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Beneficiary
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person who receives proceeds of life insurance
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Broker
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agent with job of bringing two contracting parties together
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Collective Bargaining
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process by which employer and union negotiate and agree on terms of employment
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Contributory Negligence Rule
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rule that states that an employer can escape liability for breach of duty if it can be established that the employee's own negligence contributed to the accident
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Employment at Will
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employment terminable by employer or employee for any reason
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Family Medical Leave Act
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allows the employees the right to take leaves when family circumstances or illnesses require it
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Fixture
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personal property attached to real estate
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Foreclosure
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sale of mortgaged property to pay debt
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General Agent
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agent authorized to carry out particular kind of business at a place
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Landlord
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owner of leased property
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Lien
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encumbrance or claim against property
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Limited Liability
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capital contribution is maximum loss or the maximum amount an investor can lose equals that person's actual investment in the business
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Limited Partnership
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partnership with partner whose liability is limited to capital contribution
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Negative Covenant
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agreement by grantee not to do an act
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Not for profit corporation
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one formed by private individuals for charitable, education, religious, social, or fraternal purpose
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Partnership
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association of two or more people to carry on business for profit
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Public Corporation
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one formed for governmental function
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Respondent Superior
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theory imposing liability on employers for torts of employees
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Revocation
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in terms of a will: a testor may revoke his will at any time in terms of an agency: principle may revoke agent's authority at any time
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Sole Proprietorship
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business owned and carried by one person
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Special Agent
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agent authorized to transact specific act or acts
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Term Insurance
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contract whereby insurer assumes risk of death of insured for specified time
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Act of State Doctrine
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the rule that a court should accept the validity of actions taken by a foreign government in its own country.
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Will
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document providing disposition of property after death
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Statute of Frauds
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a statutory requirement that in order to be enforceable certain contracts must be in writing
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Bill of Sale
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written agreement through which one party transfers or assigns rights or interest in goods to another party
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Casualty Insurance
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covers loss of property due to causes other than fire or the elements
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Unlimited Liability
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business debts payable from person's assets
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Affidavit
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written statement of facts, made voluntarily by the person or party making the statement and then taken before an authorized party
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Bill of Lading
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document that provide evidence of receipt of goods; issued by party engaged in the transportation of goods.
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Estate
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the interest that a person has in real and personal property; the estate is determined by the nature, value of, and percentage of ownership of property and assets
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By-laws
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regulations, ordinances, rules or laws adopted by an association or corporation for its government
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Civil Law
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laws pertaining to private or civil rights and remedies (as opposed to Criminal Law)
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Criminal Law
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laws that define behaviors that government believes to be threatening or harmful to public safety and welfare; establishes punishments for the commission prohibited acts.
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Discovery
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pre-trial activity used to obtain facts and information from one party, assisting the other party with trial preparation
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Escrow
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system of document transfer whereby funds, a deed or bond is delivered to a third party to hold until all considerations set forth in a contract are fulfilled
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Express Warranty
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a promise that is explicitly made regarding a transfer of property or rights; affirms a promise about the goods or rights transferred and becomes part of the transaction or bargain
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Indemnify
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to reimburse for losses already incurred
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Implied Warranty
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obligation imposed by law upon a party transferring property or rights
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Injunction
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a remedy forbidding a party from committing an act which he or she is threatening to attempting to commit.
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Lease
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any agreement which gives rise to a relationship between lessor and lessee
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Title
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comprehensive term referring to the legal basis of the ownership of property; also a document that provides evidence of ownership
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Ultra Vires
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the doctrine that a contract made by a corporation that is beyond the scope of its corporate powers (as determined by its state of incorporation) is unlawful;
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Tenancy in Partnership
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joint ownership that determines partners' rights specific to property held in partnership
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Intellectual Property Law
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the law that protects patents, copyrights, trade secrets and trade symbols
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Tort
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an injury or civil wrong (not a breach of contract) that the courts will find a remedy in the form of an action for damages; 3 elements of every tort action include (1) existence of legal duty from defending party to plaintiff (2) breach of that duty (3) damage as the result of the breach.
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The Sarbanes-Oxley Act
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also known as the 'Public Company Accounting Reform and Investor Protection Act', commonly called Sarbox or SOX; federal law which sets standards for all U.S. public company boards, management and public accounting firms.
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Joint Venture
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unincorporated business association made up of parties who combine their money, property, efforts, skills and / or knowledge in order to accomplish a particular business enterprise.
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LLC (Limited Liability Corporation)
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an unincorporated business association providing limited liability to its owners and mangers. LLCs may elect to be a taxable entity, not subject to corporate taxation; instead owners may be taxed as individuals.
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Fiduciary Duty
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the duty that parters owe to each other to be fair, loyal and to act in good faith; includes duty not to compete, have conflicts of interest or reveal information that is confidential.
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Duty of Obedience
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duty of partners to comply with the partnership agreement that defines their relationship, and to comply with decisions made by the partners
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Duty of Care
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duty of partners to manage the business of the partnership without gross negligence, reckless conduct or intentional misconduct, or in knowing violation of the law
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Joint and Several Liability
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creditors may sue partners jointly as a group or as individuals
