Chapter 5: Important Points Flashcards

0
Q

IP The UCC (Uniform Commercial Code)

A

A state statute enacted to simplify, clarify and modernize the laws governing commercial transactions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

IP The US Constitution

A

The supreme law of our country. Federal, state or local laws that conflict with this are unenforceable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

IP Negotiable Instrument

A

An unconditional promise or oder to pay a fixed amount with or without interest. It must satisfy the requirements of negotiability defined in UCC Article 3.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

IP Negotiable Instruments include

A

Checks and drafts, (three-party instruments) as well as promissory notes and certificates (two-party instruments).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

IP Negotiable Instruments must comply with the following:

A

Be in writing, be signed, contain an order or promise to pay a fixed sum of money, and be payable on demand or by a definite date. If no date is specified, it is payable on demand.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

IP Indorsement

A

A signature other than a maker, drawee or an acceptor that is placed on an instrument to negotiate (or transfer) it to another person.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

IP Holder in Due Course

A

One who takes a negotiable instrument for value, in good faith and without notice that it is defective.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

IP Partnership

A

A form of business organization that is owned by two or more partners and created by contract between the partners.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

IP General Partnership

A

The partners are personably liable for partnership debts exceeding partnership assets. Partners are jointly (together) and severally (separately) liable for these debts. A limited partnership consists of one or more general partners who are jointly and severally liable, and one or more silent or limited partners who contribute money or other assets of value to the extent of their ownership interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

IP Corporation

A

A taxable legal entity recognized by law, with tax rates separate from individual income tax rates. These have the power to receive, hold, and convey title to real property. Shareholders are owners of the corporation to the extent of their shareholdings.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Subchapter S Corporation

A

A type of corporate organization that is permitted to function as a corporation but is taxed as a partnership.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

IP C Corporation

A

Must pay corporate income tax to the IRS and the shareholders are also taxed on their dividends that are profits of the corporation. Therefore, a double tax is paid at the corporate level and the shareholder level.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

IP Securities Act of 1933

A

Regulates securities offered by corporations, general or limited partnerships, unincorporated associations, or individuals.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

IP Organizations Offering Securities

A

Must register with the Securities Exchange Commission (SEC) . Registration includes a registration statement and prospectus.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

IP Securities that do not involve a public offering

A

Are exempt from the SEC registration requirement. This exemption is known as Private Placement Exemption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

IP Shares of Stock in Private Offering

A

No more than 35 non-accredited investors may purchase these. Advertising to the public is not permitted.

16
Q

IP Companies Offering Securities To the Public

A

Must register with the Department of Laws, including an offering of plans to sell condominiums or cooperatives.

17
Q

IP Real Estate Investment Trusts (REITs)

A

Allow small investors to pool their money to participate in larger real estate transactions. These make financing available for large real estate developments.

18
Q

IP US Supreme Court

A

The nation’s highest court. It is composed of nine justices appointed by the President with the approval of the Senate.

19
Q

IP Federal Court System

A

Includes federal trial courts. There is at least one federal district court in each state.

20
Q

IP Special Federal Courts Hear Only Certain Types of Lawsuits

A

US Tax Court, US Claims Court, US Court of International Trade and the US Bankruptcy Court.

21
Q

IP US Court of Appeals

A

The federal court system’s intermediate appellate courts. There are 13 circuits in the federal court system. Curcuits refer to the areas where the court serves.

22
Q

IP The Unified Court System in New York

A

Composed of city, town, and village courts; county courts include county court, family court, and surrogate’s court.

23
Q

IP New York Supreme Court

A

Hears civil cases and the New York Supreme Court appellate division reviews cases fro the Supreme Court and county courts as well as administrative board such as the Worker’s Compensation Board. The court of appeals is the highest court in the state.

24
Q

IP New York City’s Court System

A

Divided into two courts: Civil Court that decides matters up to $25,000 including small claims and housing matters; a criminal court that rules on misdemeanor and traffic violations.

25
Q

IP Different Types of Laws

A

Substantive laws dealing with everyday behavior and procedural law dealing with rules and regulations.

26
Q

IP Bodies of Law Include

A

Agency law, real property law, administrative law, commercial law, contract law, corporation law, trusts and wills law, civil law, criminal law, personal property law, partnership law, torts and civil procedure.

27
Q

IP Methods to resolve disputes

A

Litigation (lawsuits), mediation, and arbitration are methods to resolve disputes.

28
Q

IP The Theory of Equitable Distribution

A

Applied by the New York Courts as to the division of marital property.

29
Q

IP Bankruptcies

A

Must adhere to the federal bankruptcy code and are filed in the federal district court. These options include Chapter 7, 11, and 13.

30
Q

IP If a person receives money or property from another, the donor may be subject to…

A

A federal gift tax. Money and property owned upon death maybe subject to an estate tax.

31
Q

IP Under the Economic Growth and Tax Relief Reconciliation Act of 2001…

A

The federal estate tax exemption is $3,500,000 for 2009.

32
Q

IP New York estate tax

A

Is limited to the maximum amount allowed on the federal estate tax return as a credit for state death taxes. There is no specific New York gift tax.

33
Q

IP Statute of Limitations

A

Imposes time limits within which litigation may be commenced. In New York, the time limit by statute to bring legal action against a party based on contract is 6 years.

34
Q

IP Statute of Frauds

A

States that contracts involving the creation of an interest in real property or the conveyance of an interest in real property must be written to be enforceable.

35
Q

IP Mechanic’s Lean

A

For residential property must be filed with the clerk of the county where property is situated within four months from the date when the labor or materials were furnished.

36
Q

IP Lis Pendens

A

There is a pending litigation. A notice of pendency is a legal notice that a lawsuit has been filed concerning title to a specific property.