Home Page Flashcards NBE - Business Law - Flashcards

NBE – Business Law – Flashcards

August Dunbar

7 July 2022

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Acceptance

answer

An agreement to an offer resulting in a contract

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Accord and Satisfaction

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An agreement made and executed in satisfaction of the rights one has from a previous contract

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Agent

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The party appointed by the principal to enter into a contract with a third party on behalf of the principal

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Alien corporation

answer

One that is incorporated in a foreign country

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Answer

answer

Official document detailing a defendant's defense

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Antitrust

answer

Laws which seek to promote competition among business

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Appellate Court

answer

Court hearing cases appealed from lower courts

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Arraignment

answer

Charging a person with a crime and asking for that person's plea

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Arrest

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To take into police custody

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Assignee

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The party to whom the assignment is made

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Assignment

answer

A means whereby one party conveys rights to another person who is not a party to the original contract

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Assignor

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The party making the assignment

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Authority

answer

Power to act for someone else

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Bailee

answer

THe party who acquires possession but not the title of personal property in a bailment

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Bailment

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The transfer of possession but not the title of personal property by one party to another, under agreement

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Bailor

answer

The party who gives up possession, but not title, of property in a bailment

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Bearer

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A person in possession of an instrument

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Bearer Paper

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A commercial paper payable to bearer; i.e. to the person having possession of such

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Beneficiary

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Recipient of the proceeds of a life insurance policy; one who inherits property as specified in a will

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Bill of lading

answer

Contract existing between the consignor (shipper) and the carrier

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Bill of sale

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Document of conveyance that provides written evidence of one's title to tangible personal property

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Blank endorsement

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Having no words other than the signature of the endorser

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Board of directors

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A body of persons elected by the stockholders to define and establish corporate policy

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Booking

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Administrative step taken after an arrested person is brought to a police station, which involves entry of the person's name, the crime for which the arrest was made, and other relevant facts on the police "blotter," and which may also include photographing, fingerprints, etc.

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Breach of contract

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Situation in which one of the parties to a contract fails or otherwise refuses to perform the obligation established in the that contract

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Business law

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Those rules of conduct prescribed by a government and its agencies, regulating business transactions

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Capital Stock

answer

Declared value of outstanding stock

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Cashier's check

answer

A check drawn on a bank's own funds and signed by a responsible bank official

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Certificate of deposit

answer

The acknowledgement by a bank of a receipt of money with an agreement of repayment

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Certified check

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A check for which the bank assures that the drawer has sufficient funds to make payment

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Check

answer

An order by a depositor on the bank to pay a sum of money to a payee.

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Civil law

answer

Legal proceedings concerned with the rights of public citizens

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Close (closed, closely held) corporation

answer

A designation which applies to a corporation in which outstanding shares of stock and managerial control are held by a limited number of people (often members of the same family)

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Commercial paper (negotiable instrument)

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A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit.

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Common law

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Customs that have become recognized by the courts as binding on the community

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Common stock

answer

Stock that entitles owner vote

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Compensatory damages

answer

An award paid to the injured party to cover the exact amount of the loss, but no more

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Complaint

answer

(petition) a written request initiating a civiil suit

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Consideration

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That which the promisor demands and receives as the price for a promise

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Consignee

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One to whom goods are shipped by common carrier

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Consignor

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One who ships goods by common carrier

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Contract

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An agreement between two or more competent persons which is enforceable by law

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contract to sell

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An agreement wherein a seller agrees to transfer title of goods to a buyer for a consideration (price), at a future time

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Contractual capability

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The necessity that the parties desiring to enter into contracts meet all requirements

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Corporation

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An artificial being, invisible, intangible and existing only in contemplation of law; an entity that has a distinct existence separate and apart from the existence of its individual members

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Counteroffer

answer

An intended acceptance which changes or qualifies the offer, and is a rejection of the original offer

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Creditor beneficiary

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The person to whom the promise of a contract owes an obligation or duty which will be discharged to the extent that the promisor performs the promise

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Crime

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An offense which is injurious to society as a whole

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Criminal law

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Laws dealing with crimes and the punishment of wrongdoers

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Defendant

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The person against whom legal action is brought

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Disaffirmance

answer

The repudiation of, or election to avoid, a voidable contract

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Discharge

answer

Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law

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Discovery

answer

Pretrial steps taken to learn the details of the case

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Domestic corporation

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Operates in the state that granted the charter

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Donee beneficiary

answer

A third party beneficiary to whom no legal duty is owed and for whom performance is a gift

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Dormant or sleeping partner

answer

Partner unknown to public with no part in management

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Draft

answer

A written order signed by one person requiring the person to whom it is addressed to pay a particular sum of money to the bearer, either on demand or at a certain time

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Drawee

answer

The person, company, or financial institution ordered to pay a draft

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Drawer

answer

The person who executes any draft

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Duress

answer

A means of removing one's free will; obtaining consent by means of threat to do harm to the person, his family, or his property

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Employee

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The person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be done

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Employer

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The party who hires employees to do certain work

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Endorsee

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A person who becomes the holder of a negotiable instrument by endorsements which names him or her as the person to whom the instrument is negotiated

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Endorsement

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The signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument

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Endorser

answer

Person who writes his or her name on the back of instrument

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Executed contracts

answer

Those contracts in which the parties have fulfilled the terms. Execution- carrying out or completion of some task

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Executory contracts

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Those contracts in which the terms have not been completely executed or fulfilled

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Existing goods

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Those goods which are, at the time of the contract, in existence and owned by the seller

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Express authority

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The authority of an agent, stated in the document or agreement creating the agency

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Express Contract

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A contract in which the parties express their intentions, either orally or in writing, at the time of the agreement

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Express warranty

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The actual and definite statement of a seller, either verbally or in writing, guaranteeing a standard or level of performance

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Felony

answer

A criminal offense that is punishable by confinement in prison or by death

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Fiduciary

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A relationship of trust and confidence, such as that which exists between partners in a partnership

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Foreign corporation

answer

Designation that applies when a corporation operates in any state other than where it is chartered

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Formal contract

answer

those contracts that must be in special form or produced in a certain way, such as under seal

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Fraud

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The intentional or reckless false statement of a material fact upon which the injured party relied which induced the injured party to enter into a contract to his or her detriment

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Future goods

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Those goods which are not in existence at the time of a contract is agreed to

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General agent

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One who is authorized to execute the principal's business at a particular place, if not all of one kind

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General partner

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An individual actively and openly engaged in the business and held out to everyone as a partner

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Goods

answer

movable tangible personal property

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Holder

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One in possession of commercial paper

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Identified goods

answer

The goods specified by the buyer and seller

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Implied authority

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An agent's authority to do things not specifically authorized in order to carry out express authority

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Implied contract

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One in which terms of the contract are implied by acts or conduct of the parties

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Implied warranties

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A warranty imposed by law, arising automatically because the sale has been made

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Independent contractor

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One who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as a means by which the contract is executed, except for specifications established in the contract.

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Injunction

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A judicial order or decree forbidding the performance of a certain act

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Intangible personal property

answer

Evidences of ownership of personal property such as stock of corporations, checks, and copyrights

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Judgment

answer

A decision of a court

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Law (Blackstone definition)

answer

Those rules of civil conduct commanding what is right and prohibiting what is wrong

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Limited liability corporation

answer

Newest form of business ownership recognized in the US; combines features of both the corporation and partnership

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Limited partner

answer

Partner whose liability for the firm's debts is limited to the amount of his/her investment

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Liquidated damages

answer

A provision in a contract fixing the amount of the damages to be paid in the event one party breaches the contract

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Maker

answer

The person who executes a promissory note

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Malpractice

answer

A breach of contract by a professional; failure to perform a professional service with the ability and care generally exercised by others in the profession

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Merchant

answer

A person who deals in goods of the kind, or otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction

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Minor

answer

A person under full legal age; in most states (but not all), the standard is under the age of eighteen

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Misdemeanor

answer

A criminal offense which is neither treason nor a felony

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Misrepresentation

answer

Stating an untrue fact

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Necessaries (Necessities)

answer

Items, required or proper and useful, for sustaining a human being at an appropriate living standard (food clothing shelter)

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Negligence

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Failure to exercise ordinary care; omission to do something which a reasonable, prudent person would do under ordinary circumstances or the doing of something which a reasonable and prudent person would not do; the lack of due care (exercised by a wrongdoer who has not acted as a reasonable person would)

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Negotiable instrument (commercial paper)

answer

A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit

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Negotiation

answer

The act of transferring ownership of a negotiable instrument to another party

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Nominal damages

answer

A token award to symbolize vindication of the wrong done to the plaintiff; generally, the award is $1.00

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Nominal partner

answer

Person who pretends to be a partner or permits others to represent him or her as a partner

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Novation

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The change of one of the parties to a contract at the mutual agreement of the original parties

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Offer

answer

An expression of the willingness to enter a contractual agreement

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Offeree

answer

The person to whom an offer is made

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Offeror

answer

The party who initiates, or makes, an offer

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Order paper

answer

A commercial paper made payable "to the order of" some named party; the word "order" or its equivalent must be used

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Ordinances

answer

Laws enacted by local municipalities

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Partnership

answer

The voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit

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Par-value stock

answer

Stock with an assigned face value

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Payee

answer

THe party to whom any negotiable instrument is made payable

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Personal property

answer

All property which is not real property

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Petition (complaint)

answer

A written request initiating a civil suit

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Plaintiff

answer

The individual who initiates a civil action

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Preferred stock

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Stock giving special advantage as to payment of dividends, upon liquidation or both

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Price

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That consideration stipulated by contract, generally expressed in money or money's worth

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Principal

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A party who appoints a second party to serve as an agent

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Private corporation

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A corporation formed by individuals to form some non-governmental function

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Process (summons)

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A notice of complaint given to a defendant, defining the complaint and a time frame in which a response, or answer, must be filed, and which serves the purpose of conferring personal jurisdiction over the defendant

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Promissory estoppel

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An equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment.

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Promissory note

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A negotiable instrument containing a promise to pay

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Promoter

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One who takes initial steps to form corporation

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property

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Anything that may be owned

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Public corporation

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A corporation formed to carry out government functions

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Punitive damages

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An award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff

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Qualified endorsement

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An endorsement which limits the liability of the endorser

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Ratification

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Confirming an act that was executed without authority or an act which was voidable

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Real property

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land and those objects permanently attached to land

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Rejection

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refusal to accept

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Rescission

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Canceling, annulling, avoiding

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Restrictive endorsement

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An endorsement which prevents the use of the instrument for anything except the stated use

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Revocation

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The annulment or cancellation of an instrument, act or promise by one doing or making it

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Sale

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The transfer of title to goods from the seller to the buyer for a consideration called the price

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Secret partner

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Partner active in a business unknown to the public

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Service contracts

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The contracting of services rather than goods

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Shareholders (stockholders)

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Those having title to one or more shares of a stock in a corporation; combined, they represent ownership of the corporation

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Sherman antitrust act

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Legislation intended to promote competition among businesses by prohibiting restraint of trade

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Silent partner

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An individual who takes no active part in the management of a business but has capital invested in the business.

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Simple contract

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Any contract other than a formal contract, whether written, oral or implied

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sole proprietorship

answer

a business owned by one person

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Special agent

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One authorized by the principal to execute specific acts

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Special endorsement

answer

An endorsement which designates the particular person to whom payment is to be made

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Special performance

answer

A contract remedy by which the court requires the breaching party to perform the contract

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Stare decisis

answer

The principle that the decision of a court should serve as a guide or precedent and control the decision of a similar case in the future

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Statute of frauds

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A statute originally enacted by the English Parliament and now enacted in some form in all states, listing certain types of contracts which could be enforced only if in written form

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Statute of limitations

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A law that restricts the period of time within which an action may be brought to court

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statutes

answer

Laws which are enacted by legislative bodies

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Subchapter S corporation

answer

A creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status

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Third party beneficiary

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Person not party to a contract, but whom parties intended to benefit

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Tort

answer

A private or civil wrong, either intentional or caused by negligence, for which there may be action for damages

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Treasury stock

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Stock reacquired by a corporation

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Trial courts

answer

Courts that conduct the original trial and render their decision

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Undue influence

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Improper influence that is asserted by one dominant person over another; without the threat or harm

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Unenforceable contract

answer

An agreement which is not in the form required by law

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Uniform commercial code

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Recognized as the most important statute in business law; includes provisions which regulate certain sales of goods

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Unilateral contract

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A one-sided contract/agreement formed when an act is done in consideration for a promise

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Usurious

answer

Exceeding the maximum rate of interest which may be charged on loans

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Valid contract

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A contract which will be enforced by the court

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Void contract

answer

An agreement of no legal effect

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Voidable contract

answer

A contract that would be an enforceable agreement, but due to circumstances, may be set aside by one of the parties

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Warranties

answer

Guarantees made by a seller that an article, good or service will conform to a certain standard or will operate in a certain manner.

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question

Acceptance

answer

An agreement to an offer resulting in a contract

question

Accord and Satisfaction

answer

An agreement made and executed in satisfaction of the rights one has from a previous contract

question

Agent

answer

The party appointed by the principal to enter into a contract with a third party on behalf of the principal

question

Alien corporation

answer

One that is incorporated in a foreign country

question

Answer

answer

Official document detailing a defendant's defense

question

Antitrust

answer

Laws which seek to promote competition among business

question

Appellate Court

answer

Court hearing cases appealed from lower courts

question

Arraignment

answer

Charging a person with a crime and asking for that person's plea

question

Arrest

answer

To take into police custody

question

Assignee

answer

The party to whom the assignment is made

question

Assignment

answer

A means whereby one party conveys rights to another person who is not a party to the original contract

question

Assignor

answer

The party making the assignment

question

Authority

answer

Power to act for someone else

question

Bailee

answer

THe party who acquires possession but not the title of personal property in a bailment

question

Bailment

answer

The transfer of possession but not the title of personal property by one party to another, under agreement

question

Bailor

answer

The party who gives up possession, but not title, of property in a bailment

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Bearer

answer

A person in possession of an instrument

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Bearer Paper

answer

A commercial paper payable to bearer; i.e. to the person having possession of such

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Beneficiary

answer

Recipient of the proceeds of a life insurance policy; one who inherits property as specified in a will

question

Bill of lading

answer

Contract existing between the consignor (shipper) and the carrier

question

Bill of sale

answer

Document of conveyance that provides written evidence of one's title to tangible personal property

question

Blank endorsement

answer

Having no words other than the signature of the endorser

question

Board of directors

answer

A body of persons elected by the stockholders to define and establish corporate policy

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Booking

answer

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Breach of contract

answer

Situation in which one of the parties to a contract fails or otherwise refuses to perform the obligation established in the that contract

question

Business law

answer

Those rules of conduct prescribed by a government and its agencies, regulating business transactions

question

Capital Stock

answer

Declared value of outstanding stock

question

Cashier's check

answer

A check drawn on a bank's own funds and signed by a responsible bank official

question

Certificate of deposit

answer

The acknowledgement by a bank of a receipt of money with an agreement of repayment

question

Certified check

answer

A check for which the bank assures that the drawer has sufficient funds to make payment

question

Check

answer

An order by a depositor on the bank to pay a sum of money to a payee.

question

Civil law

answer

Legal proceedings concerned with the rights of public citizens

question

Close (closed, closely held) corporation

answer

A designation which applies to a corporation in which outstanding shares of stock and managerial control are held by a limited number of people (often members of the same family)

question

Commercial paper (negotiable instrument)

answer

A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit.

question

Common law

answer

Customs that have become recognized by the courts as binding on the community

question

Common stock

answer

Stock that entitles owner vote

question

Compensatory damages

answer

An award paid to the injured party to cover the exact amount of the loss, but no more

question

Complaint

answer

(petition) a written request initiating a civiil suit

question

Consideration

answer

That which the promisor demands and receives as the price for a promise

question

Consignee

answer

One to whom goods are shipped by common carrier

question

Consignor

answer

One who ships goods by common carrier

question

Contract

answer

An agreement between two or more competent persons which is enforceable by law

question

contract to sell

answer

An agreement wherein a seller agrees to transfer title of goods to a buyer for a consideration (price), at a future time

question

Contractual capability

answer

The necessity that the parties desiring to enter into contracts meet all requirements

question

Corporation

answer

An artificial being, invisible, intangible and existing only in contemplation of law; an entity that has a distinct existence separate and apart from the existence of its individual members

question

Counteroffer

answer

An intended acceptance which changes or qualifies the offer, and is a rejection of the original offer

question

Creditor beneficiary

answer

The person to whom the promise of a contract owes an obligation or duty which will be discharged to the extent that the promisor performs the promise

question

Crime

answer

An offense which is injurious to society as a whole

question

Criminal law

answer

Laws dealing with crimes and the punishment of wrongdoers

question

Defendant

answer

The person against whom legal action is brought

question

Disaffirmance

answer

The repudiation of, or election to avoid, a voidable contract

question

Discharge

answer

Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law

question

Discovery

answer

Pretrial steps taken to learn the details of the case

question

Domestic corporation

answer

Operates in the state that granted the charter

question

Donee beneficiary

answer

A third party beneficiary to whom no legal duty is owed and for whom performance is a gift

question

Dormant or sleeping partner

answer

Partner unknown to public with no part in management

question

Draft

answer

A written order signed by one person requiring the person to whom it is addressed to pay a particular sum of money to the bearer, either on demand or at a certain time

question

Drawee

answer

The person, company, or financial institution ordered to pay a draft

question

Drawer

answer

The person who executes any draft

question

Duress

answer

A means of removing one's free will; obtaining consent by means of threat to do harm to the person, his family, or his property

question

Employee

answer

The person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be done

question

Employer

answer

The party who hires employees to do certain work

question

Endorsee

answer

A person who becomes the holder of a negotiable instrument by endorsements which names him or her as the person to whom the instrument is negotiated

question

Endorsement

answer

The signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument

question

Endorser

answer

Person who writes his or her name on the back of instrument

question

Executed contracts

answer

Those contracts in which the parties have fulfilled the terms. Execution- carrying out or completion of some task

question

Executory contracts

answer

Those contracts in which the terms have not been completely executed or fulfilled

question

Existing goods

answer

Those goods which are, at the time of the contract, in existence and owned by the seller

question

Express authority

answer

The authority of an agent, stated in the document or agreement creating the agency

question

Express Contract

answer

A contract in which the parties express their intentions, either orally or in writing, at the time of the agreement

question

Express warranty

answer

The actual and definite statement of a seller, either verbally or in writing, guaranteeing a standard or level of performance

question

Felony

answer

A criminal offense that is punishable by confinement in prison or by death

question

Fiduciary

answer

A relationship of trust and confidence, such as that which exists between partners in a partnership

question

Foreign corporation

answer

Designation that applies when a corporation operates in any state other than where it is chartered

question

Formal contract

answer

those contracts that must be in special form or produced in a certain way, such as under seal

question

Fraud

answer

The intentional or reckless false statement of a material fact upon which the injured party relied which induced the injured party to enter into a contract to his or her detriment

question

Future goods

answer

Those goods which are not in existence at the time of a contract is agreed to

question

General agent

answer

One who is authorized to execute the principal's business at a particular place, if not all of one kind

question

General partner

answer

An individual actively and openly engaged in the business and held out to everyone as a partner

question

Goods

answer

movable tangible personal property

question

Holder

answer

One in possession of commercial paper

question

Identified goods

answer

The goods specified by the buyer and seller

question

Implied authority

answer

An agent's authority to do things not specifically authorized in order to carry out express authority

question

Implied contract

answer

One in which terms of the contract are implied by acts or conduct of the parties

question

Implied warranties

answer

A warranty imposed by law, arising automatically because the sale has been made

question

Independent contractor

answer

question

Injunction

answer

A judicial order or decree forbidding the performance of a certain act

question

Intangible personal property

answer

Evidences of ownership of personal property such as stock of corporations, checks, and copyrights

question

Judgment

answer

A decision of a court

question

Law (Blackstone definition)

answer

Those rules of civil conduct commanding what is right and prohibiting what is wrong

question

Limited liability corporation

answer

Newest form of business ownership recognized in the US; combines features of both the corporation and partnership

question

Limited partner

answer

Partner whose liability for the firm's debts is limited to the amount of his/her investment

question

Liquidated damages

answer

A provision in a contract fixing the amount of the damages to be paid in the event one party breaches the contract

question

Maker

answer

The person who executes a promissory note

question

Malpractice

answer

A breach of contract by a professional; failure to perform a professional service with the ability and care generally exercised by others in the profession

question

Merchant

answer

A person who deals in goods of the kind, or otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction

question

Minor

answer

A person under full legal age; in most states (but not all), the standard is under the age of eighteen

question

Misdemeanor

answer

A criminal offense which is neither treason nor a felony

question

Misrepresentation

answer

Stating an untrue fact

question

Necessaries (Necessities)

answer

Items, required or proper and useful, for sustaining a human being at an appropriate living standard (food clothing shelter)

question

Negligence

answer

question

Negotiable instrument (commercial paper)

answer

A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit

question

Negotiation

answer

The act of transferring ownership of a negotiable instrument to another party

question

Nominal damages

answer

A token award to symbolize vindication of the wrong done to the plaintiff; generally, the award is $1.00

question

Nominal partner

answer

Person who pretends to be a partner or permits others to represent him or her as a partner

question

Novation

answer

The change of one of the parties to a contract at the mutual agreement of the original parties

question

Offer

answer

An expression of the willingness to enter a contractual agreement

question

Offeree

answer

The person to whom an offer is made

question

Offeror

answer

The party who initiates, or makes, an offer

question

Order paper

answer

A commercial paper made payable "to the order of" some named party; the word "order" or its equivalent must be used

question

Ordinances

answer

Laws enacted by local municipalities

question

Partnership

answer

The voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit

question

Par-value stock

answer

Stock with an assigned face value

question

Payee

answer

THe party to whom any negotiable instrument is made payable

question

Personal property

answer

All property which is not real property

question

Petition (complaint)

answer

A written request initiating a civil suit

question

Plaintiff

answer

The individual who initiates a civil action

question

Preferred stock

answer

Stock giving special advantage as to payment of dividends, upon liquidation or both

question

Price

answer

That consideration stipulated by contract, generally expressed in money or money's worth

question

Principal

answer

A party who appoints a second party to serve as an agent

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Private corporation

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A corporation formed by individuals to form some non-governmental function

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Process (summons)

answer

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Promissory estoppel

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An equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment.

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Promissory note

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A negotiable instrument containing a promise to pay

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Promoter

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One who takes initial steps to form corporation

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property

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Anything that may be owned

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Public corporation

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A corporation formed to carry out government functions

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Punitive damages

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An award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff

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Qualified endorsement

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An endorsement which limits the liability of the endorser

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Ratification

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Confirming an act that was executed without authority or an act which was voidable

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Real property

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land and those objects permanently attached to land

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Rejection

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refusal to accept

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Rescission

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Canceling, annulling, avoiding

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Restrictive endorsement

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An endorsement which prevents the use of the instrument for anything except the stated use

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Revocation

answer

The annulment or cancellation of an instrument, act or promise by one doing or making it

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Sale

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The transfer of title to goods from the seller to the buyer for a consideration called the price

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Secret partner

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Partner active in a business unknown to the public

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Service contracts

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The contracting of services rather than goods

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Shareholders (stockholders)

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Those having title to one or more shares of a stock in a corporation; combined, they represent ownership of the corporation

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Sherman antitrust act

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Legislation intended to promote competition among businesses by prohibiting restraint of trade

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Silent partner

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An individual who takes no active part in the management of a business but has capital invested in the business.

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Simple contract

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Any contract other than a formal contract, whether written, oral or implied

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sole proprietorship

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a business owned by one person

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Special agent

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One authorized by the principal to execute specific acts

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Special endorsement

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An endorsement which designates the particular person to whom payment is to be made

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Special performance

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A contract remedy by which the court requires the breaching party to perform the contract

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Stare decisis

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The principle that the decision of a court should serve as a guide or precedent and control the decision of a similar case in the future

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Statute of frauds

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A statute originally enacted by the English Parliament and now enacted in some form in all states, listing certain types of contracts which could be enforced only if in written form

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Statute of limitations

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A law that restricts the period of time within which an action may be brought to court

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statutes

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Laws which are enacted by legislative bodies

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Subchapter S corporation

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A creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status

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Third party beneficiary

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Person not party to a contract, but whom parties intended to benefit

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Tort

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A private or civil wrong, either intentional or caused by negligence, for which there may be action for damages

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Treasury stock

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Stock reacquired by a corporation

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Trial courts

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Courts that conduct the original trial and render their decision

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Undue influence

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Improper influence that is asserted by one dominant person over another; without the threat or harm

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Unenforceable contract

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An agreement which is not in the form required by law

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Uniform commercial code

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Recognized as the most important statute in business law; includes provisions which regulate certain sales of goods

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Unilateral contract

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A one-sided contract/agreement formed when an act is done in consideration for a promise

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Usurious

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Exceeding the maximum rate of interest which may be charged on loans

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Valid contract

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A contract which will be enforced by the court

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Void contract

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An agreement of no legal effect

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Voidable contract

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A contract that would be an enforceable agreement, but due to circumstances, may be set aside by one of the parties

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Warranties

answer

Guarantees made by a seller that an article, good or service will conform to a certain standard or will operate in a certain manner.

NBE – Business Law – Flashcards

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