Business Law FBLA – 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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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 (appointed but not officially)
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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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Parties try to resolve disagreements outside of the usual court system, by mediation, arbitration, conciliation, and negotiation
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Alternative Dispute Resolution
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The true interest rate of a loan
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Annual Percentage Rate (APR)
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Authority that a 3rd 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 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 info and is asked to plead guilty or not guilty
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Arraignment
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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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Occurs when a person is legally deprived of his or her freedom
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Arrest
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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 assests, such as property, building, 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 jail
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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 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 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 1 of Constitution giving Congress power to regulate commerce among 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. Originated in England
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Common Law
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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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The exchange of benefits and detriments by the parties to a contract
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Consideration
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When 2+ companies join together to form a new corporation
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Consolidation
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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 one may receive cash, goods, or services now and pay in the future
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Counteroffer
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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 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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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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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 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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Derivative Suit
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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 to not live up to a contract
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Disaffirm
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The act of ending contract by mutual agreement
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Discharge by Agreement
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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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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 thrid 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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A computerized system for transferring funds electronically rather than by writing checks
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Electronic Fund Transfer
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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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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
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A standard that states 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
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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 biling 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
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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
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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 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 bailment 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 lead an employee to reasonable 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 about the corporation that is not available to the public
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Insider Tradiing
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The financial interest a policy holder has in the person or property that is insured
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Insurable Interest
