Business Law Vocabulary Flashcards
The authority an agent is believed by third parties to have because of the behavior of the principal.
Apparent Authority
A creation of the tax codes in which shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status.
Subcharter S Corporation
A business owned by one person who is subject to claims of creditors.
Sole Proprietorship
Land and those objects permanently attached to land.
Real Estate (Real Property)
A negotiable instrument containing a promise to pay.
Promissory Note
Partner unknown to the public with no part in management.
Dormant Partner (Sleeping Partner)
Warranties imposed by law, arising automatically because the sale has been made.
Implied Warranties
Items, required or proper and useful, for sustaining a human being at an appropriate living standard. (Examples: food, clothing and shelter).
Necessaries
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
Operates in the state that granted the charter.
Domestic Corporation
The written request which initiates a civil law suit.
Complaint (Petition)
Rate of interest which exceeds the maximum that is allowed.
Usury
The person hired to perform work and who is obligated both as to the work to be done and s to the manner in which it is to be done.
Employee
Rules of conduct commanding what is right and prohibiting what is wrong.
Law
The written request which initiates a civil law suit.
Petition (Complaint)
Federal legislation intended to promote competition among businesses by prohibiting restraint of trade.
Sherman Antitrust Act
The party to initiates, or makes, an offer.
Offeror
The relationship that exists between a person identified as a principal and another by virtue of which the latter may make contracts with third persons on behalf of the principal.
Agency
Those persons under legal age; in most states (but not all), the standard is under the age of eighteen.
Minor
The party who gives up possession, but not the title of personal property in a bailment.
Bailor
A notice given to a defendant, attaching the complaint and stating a time frame in which an answer must be filed or an appearance made.
Process (Summons)
The transfer of title to goods from the seller to the buyer for consideration called the price.
Sale
The transfer of possession, but not the title of personal property by one party to another, under agreement.
Bailment
Failure to exercise ordinary care; omission to do something which a reasonable prudent person would do under ordinary circumstances or the doing or something which a reasonable and prudent person would not do; the lack of due care (a breach of a legal duty to act carefully resulting in injury to another or damage to another’s property).
Negligence
A permanent judicial order or decree forbidding the performance of a certain act.
Injunction
A business owned by one person who is subject to claims of creditors.
Proprietorship
An agreement which would be an unenforceable agreement, but due to circumstances, may be set aside by one of the parties.
Voidable Contract
Person who writes his or her name on the back of an instrument.
Indorser (Endorser)
Person not party to a contract, but whom parties intended to benefit.
Third Party Beneficiary
The person who executes any draft.
Drawer
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
An award paid to the injured party to cover the exact amount of their loss, but no more.
Compensatory Damages
The necessity that the parties desiring to enter into contracts meet all requirements.
Contractual Capacity
A contract which will be enforced by the court.
Valid Contract
A contract which consists of mutual promises to perform some future acts.
Bilateral Contract
An intended acceptance which changes or qualifies an original offer, and in effect, rejects that offer and becomes a new offer.
Counteroffer
The consideration stipulated by contract, generally expressed in monetary terms.
Price
Those contracts which must be in special form or produced in a certain way, such as under seal.
Formal Contract
A contract formed when an act is done in consideration for a promise.
Unilateral Contract
A more serious criminal offense that is punishable by death or imprisonment in a penitentiary for more than one year.
Felony
Official document detailing a defendant’s defense.
Answer
Laws which seek to promote competition among business.
Antitrust
The actual and definite statement of a seller, either orally or in writing, at the time of the sale.
Express Warranties
The party appointed by the principal to enter into a contract with a third party on behalf of the principal.
Agent
The person, company or financial institution ordered to pay a draft.
Drawee
A person who is not a party to a contract to whom the promisor of a contract owes an obligation or duty.
Creditor Beneficiary
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
Recognized as the most important statute in business law, it includes provisions which regulate certain sales of goods and negotiable instruments.
Uniform Commercial Code
The carrying out or completion of some task.
Execution
The contracting of services rather than goods.
Service Contracts
Persons who are under the influence of alcohol to the extent that their judgement may be impaired.
Intoxication
Improper influence that is asserted by one dominant person over another, without the threat of harm.
Undue Influence
Guarantee made by a seller that an article, good, or service will conform to a certain standard or will be operated in a certain manner.
Warranty
An award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff.
Punitive Damages
The annulment or cancellation of an instrument, act, or promise by the one doing or making the offer.
Revocation
A means whereby one party in a contract conveys rights to another person, who is not a party to the original contract.
Assignment
A contract in which the parties express their intentions, either orally or in writing at the time of the agreement.
Express Contract
The party who acquires possession but not the title, of personal property by one party to another, under assignment.
Bailee
Anything that may be owned.
Property
A decision of a court of law.
Judgement
The acknowledgement by a bank of a receipt of money with an agreement of repayment.
Certificate of Deposit
A person in possession of an instrument.
Bearer
Stating an untrue fact.
Misrepresentation
One in possession of a commercial paper.
Holder
The individual who initiates a civil action.
Plaintiff
One who takes initial steps to form a corporation.
Promoter
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, fingerprinting and the like.
Booking
That which the promisor demands and receives as the price for a promise.
Consideration
Stock reacquired by a corporation.
Treasury Stock
