Business Law Flashcards
an agreement to an offer resulting in a contract
acceptance
an agreement made and executed in satisfaction of the rights one has from a previous contract
accord and satisfaction
the party appointed by the principal to enter into a contract with a third party on behalf of the principal
agent
one that is incorporated in a foreign country
alien corporation
official document detailing a defendants defense
answer
laws which seek to promote competition among business
antitrust
the authority an agent is believed by third parties to have beause of the behavior of the principal
apparent authority
request to a higher court to review a lower courts decision
appeal
courts hearing cases appealed from a lower court
appellate courts
charging a person with a crime and asking for that persons plea
arraignment
to take into police custody
arrest
the party to whom the assignment is made
assignee
a means whereby one party in a contract conveys rights to another person, who is not a party to the original contract
assignment
the party making the assignment
assignor
power to act for someone else
authority
the party who acquires possession but not the title, of personal property by one party to another, under agreement
bailee
the transfer of possession, but not the title of personal property by one party to another, under agreement
bailment
the party who gives up possession, but not the title, of personal property in a bailment
bailor
a person in possession of an instrument
bearer
a commercial paper made payable to bearer, i.e. to the person having possission of such
bearer paper
recipient of the proceeds of a life insurance policy; one who inherits property as specified in a will
beneficiary
a contract which consists of mutual promises to perform sone future acts
bilateral contract
the contract existing between the consignor (shipper) and the carrier
bill of lading
a document of conveyance which provides written evidence of title to tangible personal property
bill of sale
having no words other than the signature of the indorser
blank indorsement
a body of persons elected by the stockholders to define and establish corporate policy
board of directors
administrative step taken after an arrested person is brought to 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, fingerprinting and the like
booking
a situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in that contract
breach of contract
those rules of conduct prescribed by a government and its agencies in regulating the business transactions
business law
a check drawn on a bank’s own funds and signed by a responsible bank official
cashiers check
the acknowledgment by a bank of a receipt of money with an agreement of repayment
certificate of deposit
a check for which the bank assures that the drawer has sufficient funds to make payment
certified check
an order by a depositor on the bank to pay a sum of money to a payee
check
the body of law concerned with private or purely personal rights
civil law
a designation which applies to a corporation in which outstanding share of stock and managerial control are held by a limited number of people (often members of the same family)
close closely held corporation
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
commercial paper (negotiable instrument)
customs which have become recognized by the courts as binding on the community
common law
an award paid to the injured party to cover the exact amount of their loss, but no more
compensatory damages
the written request which initiates a civil law suit
complaint (petition)
that which the promisor demands and receives as the price for a promise
consideration
one to whom goods are shipped by common carrier
consignee
one who ships goods by common carrier
consignor
an agreement between two or more competent persons which is enforceable by law
contract
a seller agrees to transfer title to goods to buyer for a consideration (price) at a future time
contract to sell
the necessity that the parties desiring to enter into contracts meet all requirements
contractual capacity
a business entity created by statutory law and owned by individuals known as stockholders
corporation
an inteded acceptance which changes or qualifies an original offer, and in effect rejects that offer and becomes a new offer
counteroffer
a person who is nota party to a contract to whom the promisor of a contract owes an obligation or duty
creditor beneficiary
an offense which is injurious to society as a whole
crime
law dealing with crimes and the punishment of wrongdoers
criminal law
the person against whom legal action is brought
defendant
the repudiation of , or election to avoid , a voidable contract
disaffimance
termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law
discharge
pretrial steps taken to learn the details of the case
discovery
operates in the state that granted the charter
domestic corporation
a third party beneficiary to whom no legal duty is owed and for whom performance is a gift
donee beneficiary
a written order signed by one person requiring the person to whom addressed to pay a particular sum o fmoney, to order or to bearer, on demand or at a certain time
draft
the person, company or financil institution ordered to pay a draft
drawee
the person who executes any draft
drawer
a means of removing ones free will, obtaining consent by means of a threat to do harm to the person, his earning power
duress
the person hired to perform work and who is obligated both as to work to be done and as to the manner in which it is to be done
employee
the party who hires people to do certain work
employer
contracts in which the terms have been fulfilled
executed contract
those goods which are, at the time of the contract, in existence and owned by the seller
existing goods
th e authority of an agent, stated in the document or agreement creating the agency
express authority
a contract in which th eparties express their intentions, either orally or in writing at the time of the agreement
express contract
the actual and definite statement of a seller, either orally or in writing, at t he tiem of the sale
express warranties
a more serious criminal offense that is punishable by death or imprisonment in a penitentiary for more than one year
felony
a relationship of trust and confidence such as that which exists between partners in a partnership.
fiduciary
designation that applies when a corporation operates in an t state other than where it is chartered
foreign corporation
those contracts which must be in special form or produced in a certain way, such as under seal
formal contract
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 , at his or her detriment
fraud
goods which are not in existence at the time a contract is agreed to
future goods
one who is authorized to execute the principals business of a particular kind, or all the principal’s business at a particualr place, if not all of one kind.
general agent
those individuals actively and openly engaged in the business and held out ot every one as a partner
general partner
movable tangible personal property
goods
one in possession of commercial paper
holder
a person in possession of a negotiable instrument who accepts the negotiable instrument in good faith and for value
holder in due course
the goods specified by the buyer and seller
identified goods
an agents authority to do things not specifically authorized in order to carry out express authority
implied authority
one in which terms of the contract are implied by acts or conduct of the parties
implied contract
warranties imposed by law, arising automatically because the sale has been made
implied warranties
one who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as to a means by which the contract is executed, except for specifications esablished in th econtract
independent contractor
a person who becomes the holder of a negotiable instrument by indorsement which names him or her a s the person to whom eht instrument is negotiated
indorsee
the signature or statement of purpose by the owner on the back of a negotiable instrument which indicated the future control of the instrument
indorsement
person who writes his or her name on the back of an instrument
indorser
a permanent judicial order or decree forbidding the performance of a certain act
injunction
persons who are afflicted with a serious mental disorder impairing their ability to function
insane
evidences of ownership of personal property such as stock of corporations, checks and copyrights.
intangible personal property
persons who are under the influence of alcohol to the extent that their judgment may be impaired
intoxication
a decision of a court of law
judgment
rules of conduct commanding what is right and prohibiting what is wrong
law
newest form of business ownership recognized in the U.S. combines features of both the corporation and partnership
limited liability corporation
partners who have their liability for the firms debts limited to the amount of their investment
limited partner
the amount of the damages stipulated in a contract to be paid in the event one party breaches the contract
liquidated damages
the person who executes a promissory note
maker
a breach of contract by a professional person; failure to perform a professional service with the ability and care generally exercised by others in the profession
malpractice
a person who deals in goods of the kind or other wise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction
merchant
those persons under legal age in most states but not all, the standard is under the age of 18
minor
a less serious criminal offense, generally punishable by fine and or imprisonment of less than one year
misdemeanor
stating an untrue fact
misrepresentation
items, required or proper and useful, for sustaining a human being at an appropriate living standard
necessaries
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 would not do; the lack of due care
negligence
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
negotiable instrument
the act of transferring ownership of a negotiable instrument to another party
negotiation
a token award to symbolize vindication of the wrong done to the plaintiff generally the award is $1.00
nominal damages
the substitution of a new party for one of the original parties to a contract, such that the prior contract terminates and a new one substitutes for it
novation
a proposal to make a contract
offer
the person to whom an offer is made
offeree
the party who initiates or makes an offer
offeror
a commercial paper made payable to the order of some named party, the word order or its equivalent must be used
order paper
law enacted by a local government entity
ordinance
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
partnership
the party to whom any negotiable instrument is made payable
payee
all property which is not real property
personal property
the written request which initiates a civil law suit
petition
the individual who initiates a civil action
plaintiff
the consideration stipulated by contract, generally expressed in monetary terms
price
a party who appoints a second party to serve as an agent
principal
a corporation formed by individuals to carry out some non governmental function
private corporation
a notice of given to a defendant, attaching the complaint and stating a time frame in which an answer must be filed or an appearance made
process
an equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment
promissory estoppel
a negotiable instrument containing a promise to pay
promissory note
a business owned by one person who is subject to claims of creditors
proprietorship
a corporation formed to carry out government functions
public corporation
an award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff
punitive damages
an endorsement which limits the liability of the indorser
qualified endorsement
confirming an act which was executed without authority or an act which was voidable
ratification
land and those objects permanently attached to land
real estate
land and those objects permanently attached to land
real property
canceling, annulling, avoiding
recission
refusal to accept
rejection
an endorsement which prevents the use of the instrument for anything except the stated use
restrictive indorsement
the annulment or cancellation of an instrument, act or promise by one doing or making the offer
revocation
the transfer of title to goods from the seller to the buyer for a consideration called the price
sale
the contracting of services rather than goods
service contracts
those having title to one or more shares of stock in a corporation, combined, they represent ownership of the corporation
shareholders
federal legislation intended to promote competition among businesses by prohibiting restraint of trade
sherman antitrust act
an individual who takes no active part in the management of a partnership but has capital invested in the business
silent partner
any contract other than a formal contract, whether written, oral or implied
simple contract
a business owned by one person who i subject to claims of creditors
sole proprietorship
one authorized by the principal to execute specific acts
special agent
an endorsement which designates the particular person to whom payment is to be made
special indorsement
a contract remedy by which the court requires the breaching party to perform the contract
specific performance
the principle that the decision of a higher court should serve as a guide or precedent and control the decision of a similar case in the future
stare decisis
a statute originally enacted by english parliament, and now enacted in some form in all the american states, listing certain types of contracts which could only be enforced if in written form
statute of frauds
a law that restricts the period of time within which an action may be brought to court
statute of limitations
laws which are enacted by legislative bodies
statutes
those having title to one or more shares of stock in a corporation, combined, they represent ownership of the corporation
stockholders- shareholders
a creation of the tax codes in which shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status
subchapter s corporation
a notice given to a defendant, attaching the complaint and stating a time frame in which na answer must be filed or an appearance made
summons- process
person not party to a contract, but whom parties intended to benefit
third party beneficiary
a private or civil wrong, other than by breach of contract, for which there may be action for damages
tort
Court which conducts the original trial and renders its decision
trial court
improper influence that is asserted by one dominant person over another, without the threat of harm
undue influence
an agreement which a tt he current time is not enforceable by law
unenforceable contract
recognized as the most important statute in business law, it includes provisions which regulate certain sales of goods and negotiable instruments
uniform commercial code
a contract formed when an act is done in consideration for a promise
unilateral contract
exceeding the maximum rate of interest which may be charged on loans
usurious
rate of interest which exceeds the max that is allowed
usury
a contract which will be enforced by the court
valid contract
an agreement of no legal effect
void contract contract
an agreement which would be an enforceable agreement, but due to circumstances may be set aside by one of the parties
voidable contract
guarantee made by a seller that an article good or service will conform to a certain standard or will operate in a certain manner.
warranty
