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Exam Flashcards

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1
Q

accounts receivable

A

funds owed to a business for goods or services provided to customers

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2
Q

assignment in bankruptcy

A

the voluntary transfer of a debtor’s assets to a trustee in bankruptcy

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3
Q

attachment

A

the situation in which value has been given pursuant to the contract, giving the creditor a claim against the assets used as security if there is a default by debtor

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4
Q

bankrupt

A

a person who has made an assignment in bankruptcy or been forced into bankruptcy through a court order obtained by a creditor, and who has not been discharged from bankruptcy

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5
Q

bankruptcy

A

the process by which an insolvent person voluntarily or involuntarily transfers assets to a trustee for distribution to creditors

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6
Q

bankruptcy order

A

a statutory assignment of a debtor’s assets to a trustee in bankruptcy

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7
Q

bill of sale

A

a written agreement that conveys title from seller to buyer

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8
Q

bona fide purchaser for value

A

an innocent third party who has paid a fair price for goods under claim by a creditor

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9
Q

book accounts

A

accounts receivable that can be used as security for a loan

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10
Q

chattel mortgage

A

a loan for which a creditor provides credit to the debtor, securing the loan by taking title of a good such as a car

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11
Q

chattels

A

tangible, movable personal property that can be measured and weighed; also know as goods

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12
Q

chose in action

A

the thing or benefit that is transferred in an assignment; intangible personal property, such as a claim or the right to sue

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13
Q

collateral

A

goods or property used to secure a debt

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14
Q

conditional sale

A

a sale in which the seller provides credit to the purchaser, holding title until the goods are paid for

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15
Q

confirmed letter of credit

A

a document, ratified by the lender, that secures or guarantees the financial aspects of a trade transaction

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16
Q

consolidation order

A

a court order issued under the orderly payment of debts program that sets out amounts to be paid into court by the debtor for the benefit of each of the creditors subject to the order

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17
Q

consumer debtor

A

an individual who is bankrupt or insolvent, with less than $250,000 in claims against them (excluding a mortgage on their home)

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18
Q

consumer proposal

A

an alternative to bankruptcy, whereby a consumer debtor secures some time to reorganize their affairs and make a proposal for partial payment that will satisfy their creditors

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19
Q

continuing guarantee

A

a provision in a guarantee allowing the creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default

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20
Q

division I proposal

A

an offer made to creditors by the debtor to change the amount and/or payment terms of the debt

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21
Q

division II proposal

A

a consumer debtor secures some time to reorganize their affairs and make a proposal for partial payment that will satisfy their creditors

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22
Q

estate

A

all the property the owner has power to dispose of, less any related debt; an interest in land; the property of a bankrupt given to the trustee in bankruptcy

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23
Q

fixture

A

a thing attached to land or to a building or to another fixture attached to the land

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24
Q

floating charge

A

a security not fixed on any particular assets until default or some other specified event

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25
Q

fraudulent preference

A

a debtor’s payment of money to one creditor to give that creditor preference over the other creditors

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26
Q

fraudulent transfer

A

a debtor’s transfer of property in an attempt to keep it out of the hands of creditors; not a valid sale at a fair price to an innocent third part

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27
Q

guarantee

A

a written commitment whereby a guarantor agrees to pay a debt if the debtor does not

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28
Q

guarantor

A

a person assuming obligation to pay if the debtor does not

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29
Q

holdback

A

a specified percentage that a person owing funds on a construction contract must retain for a specified period to protect against claims made by the suppliers of goods and services

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30
Q

indemnity

A

a primary obligation of a third party to pay a debt along with the debtor

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31
Q

insolvency

A

inability if a person to pay their debts as they become due

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32
Q

lease

A

a secured agreement whereby possession of the goods goes to the lessee, while the title to the goods remains with the lessor

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33
Q

lease to purchase

A

a lease in which title to the goods is transferred to the lessee at the end of the lease periodl

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34
Q

letter of credit

A

a commitment by the importer’s bank that the price stated will be paid upon presentation of documentation confirming delivery

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35
Q

mortgage

A

a means of securing loans; title of property is held by the moneylender as security in some jurisdictions; in other jurisdictions, a mortgage is simply a charge against title

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36
Q

official receiver

A

an officer of the court, appointed by the superintendent of bankruptcy, for each bankruptcy district

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37
Q

operating lease

A

a lease in which the goods are returned to the lessor at the end of the lease period

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38
Q

perfection

A

protection of a secured creditor’s claim, either by registering the secured obligation or by taking possession of the collateral

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39
Q

personal property

A

tangible, movable goods and intangible claims

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40
Q

pledge

A

an item that a creditor takes possession of as security and holds until repayment

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41
Q

preferred creditors

A

creditors who, by legislation, must be paid before other unsecured creditors

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42
Q

priority

A

when there are two or more creditors, the one entitled to be paid first has priority; for example a registered lien usually has first claim over other interests to goods used as security

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43
Q

proof of claim

A

a document filed with the trustee in bankruptcy establishing the validity of a creditor’s claim

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44
Q

purchase money security interest (PMSI)

A

a security interest on specific goods that has priority over a general security agreement provided it is registered within a specified time

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45
Q

real property

A

land, building attached to the land, and items called fixtures

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46
Q

receivership

A

a proceeding in which a receiver is appointed for an insolvent corporation, partnership, or individual to take possession of its assets for ultimate sale and distribution to creditors

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47
Q

right to redeem

A

after a creditor has taken possession of collateral, the right of the debtor to reclaim it on payment of any money owing

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48
Q

secured creditor

A

a creditor who has a claim on property of the debtor, giving them priority on that property over other creditors

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49
Q

secured transaction

A

a collateral right to debt giving the creditor the right to take back the goods or intercept the debt owing used as security in the event of default

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50
Q

settlement

A

transfer of assets where nominal or no consideration is involved

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51
Q

standby letter of credit

A

a commitment by the importer’s bank that the price stated will be paid upon presentation of documentation confirming delivery; used as a guarntee

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52
Q

superintendent of bankruptcy

A

the government official appointed by the federal government who is responsible for the administration of bankruptcy across Canada

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53
Q

surplus income

A

amount a bankrupt’s income exceeds what is necessary to maintain a reasonable standard of living according to standards set by the office of the superintendent of bankruptcy

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54
Q

trustee in bankruptcy

A

the licensed professional appointed to administer the estate of a bankrupt for the benefit of the creditors

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55
Q

voluntary assignment in bankruptcy

A

the voluntary transfer of a debtor’s assets to a trustee in bankruptcy so that they can be administered for the benefit of the creditors

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56
Q

abatement

A

a court order to reduce the rent to be paid to compensate for a breach of the lease by the landlord

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57
Q

adverse possession

A

a right to actual possession, which can be acquired by non-contested use of the land

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58
Q

agreement for sale

A

an agreement where the title will be transferred at some time in the future, typically once the property is fully paid for; an agreement that grants possession of the property to the purchaser pending full payment of the price

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59
Q

agreement of purchase and sale

A

the first stage in the purchase of real property; also referred to as an interim agreement between the vendor and purchaser

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60
Q

bailee

A

the person acquiring possession of personal property in a bailment

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61
Q

bailment

A

temporary possession by one person of chattels owned by another

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62
Q

bailment for value

A

a bailment involving a mutual benefit of consideration flowing between the parties

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63
Q

bailor

A

the owner giving up possession of property in a bailment

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64
Q

building scheme

A

a set of restrictions placed on all the properties in a large development

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65
Q

certificate of title

A

conclusive evidence as to the ownership of a property

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66
Q

cooperative

A

an independent legal entity composed of members holding shares in it; a method of acquiring residential accommodation

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67
Q

deed of conveyance

A

a document transferring an interest in property

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68
Q

distress

A

seizure by a landlord of any property left by a tenant holding it until the rent is paid or selling it to pay rent owing

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69
Q

dominant tenement

A

property that has the advantage of an easement

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70
Q

dower rights

A

protection of the rights of a spouse in certain matrimonial property; have been modified or abolished in most jurisdictions

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71
Q

easement

A

the right of a person other than the owner to use a portion of private property

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72
Q

easement acquired by prescription

A

a right to the use of land that is acquired through free use of that land without interference over a number of years

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73
Q

equity of redemption

A

an interest in land retained by the mortgage even after default

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74
Q

estate in land

A

the right to uninterrupted possession of land for a period of time. the amount of time is determined by the nature of the estate

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75
Q

fee simple

A

the highest interest in land, equivalent to ownership; an estate granting possession for an infinite time

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76
Q

foreclosure

A

a court process ending the mortgagor’s right to redeem

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77
Q

forfeiture

A

the requirement by a landlord that a tenant who breached the lease vacate the property

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78
Q

fungibles

A

goods being of such a nature that one part of quantity may be replaced

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79
Q

homestead rights

A

rights giving a spouse a claim to a substantial portion of family property

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80
Q

interim agreement

A

a binding contract that will subsequently be put into a more formal document; usually refereed to as an agreement of purchase and sale in a real estate transactions

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81
Q

join tenancy

A

shared property ownership with a right of survivorship

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82
Q

land titles system

A

registration system that guarantees title to real property

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83
Q

leasehold estate

A

an interest in land that grants the tenant exclusive possession until a specific date

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84
Q

licence

A

a non-exclusive right to use property; revocable persmission to use another’s lan

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85
Q

life estate

A

an interest in land ending at death of the estate holder

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86
Q

option agreement

A

a subsidiary contract creating an obligation to hold an offer open for acceptance until the expiration of a specified time

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87
Q

order for judicial sale

A

a court order that property be sold during the redemption period

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88
Q

periodic tenancy

A

automatically renewing tenancy with no specific termination date

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89
Q

registration system

A

a means of registering and tracking property deeds

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90
Q

relief against forfeiture

A

an equitable principle that when a landlord retakes a property because of a failure to pay rent prior to the end of the lease term, the tenant can pay the arrears and apply in the court to have the lease reinstated

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91
Q

remainderman

A

a third party with the right to the remainder of the fee simple after the death of a life tenant

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92
Q

reversionary interest

A

the right of the original owner to retake possession of property upon the death of the life tenant

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93
Q

right of way

A

a type of easement that allows the crossing of another’s land

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94
Q

riparian rights

A

the common law right given to people living near rivers streams to have the water come to them in undiminished quantity and quality

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95
Q

servient tenement

A

the property subject to an easement

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96
Q

severance

A

an owner’s removal of chattel that they have affixed; separation or division of joint ownership; action by one of the co-owners that is inconsistent with joint tenancy

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97
Q

statutory easements

A

easements giving utilities or other bodies rights to run power or sewer lines across private property and to enter the property to inspect and maintain them

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98
Q

sublet

A

a lease executed by the lessee of land or premises to a third party for a shorter term than that which the lessee holds

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99
Q

tenancy at sufferance

A

a situation in which a tenant fails to leave after a lease has expired and owes compensation to the landlord

100
Q

tenancy in common

A

ownership of land by two or more people with equal, undivided interests in it

101
Q

vacant possession

A

an obligation to deliver possession of vacant premises to a tenant at the beginning of a lease period

102
Q

balance of convenience

A

determination of who will suffer the greatest injury if the damage were allowed to continue

103
Q

copyright

A

control over the use and reproduction of the expression of creative work; type of intellectual property

104
Q

delivery up

A

an order directing the defendant to deliver all copies of the infringing items in her possession or control to the copyright owner

105
Q

encryption coding

A

technological innovations to proctect privacy and security on the internet

106
Q

enhanced injunction

A

an injunction ordered by the courts that goes beyond ceasing or rectifying current behaviour by preventing a party from engaging in certain behaviour in the future as well

107
Q

fair dealing

A

use of copyrighted material for the purposed of research or private study, criticism or review, or new reporting

108
Q

intellectual property

A

personal property in the form of ideas and creative work

109
Q

moral rights

A

an author’s right to prohibit others, including any new owner of a creative work, from distorting or degrading it, associating the work with particular causes or entities, and the right of attribution (to be named)

110
Q

netiqueete

A

a code of conduct for online activities

111
Q

patent

A

a government-granted monopoly prohibiting anyone but the patent to owner and licensees from making, using, selling, or importing the invention

112
Q

permanent injunction

A

a court order prohibiting offending conduct

113
Q

public domain

A

the category of works that are no linger copyrighted and may be used by anyone

114
Q

statutory damages

A

a new remedy enabling a court to award damages that it “considers just” under the circumstances, without requiring proof of damage or lost profits

115
Q

summary procedures

A

an arrangement allowing a court to make a decision based on affidavit evidence

116
Q

trade secret

A

confidential information that gives a business competitive advanatage

117
Q

trademark

A

any terms, letters, numbers, symbols, designs, colours, sounds or combination of these, that identifies business services or products and distinguishes them from those of a competitor

118
Q

affirmative action

A

programs intended to correct racial, gender, or other imbalances in the workplace

119
Q

agent

A

a person authorized to represent or act on behalf of a principal in dealing with third parties

120
Q

Anton Piller order

A

court order to seize offending material before trials

121
Q

bargaining agent

A

a body certified to act on behalf of a group of employees or employers

122
Q

closed shop

A

a workplace where only workers who are already members of the union can be hired

123
Q

collective bargaining

A

a procedure for settling terms and conditions of employment by negotiation between an employer and its employees as expressed through representatives chosen by them

124
Q

constructive dismissal

A

unilaterally demoting or changing the duties of an employee, contrary to what was agreed to in the employment contract; conduct that essentially terminates a pre-existing contractual relationship, which could be treated as dismissal

125
Q

control test

A

a test of whether an employment relationship exists based on whether the person being paid for work is told how, when, and where to do it

126
Q

employee

A

a person who has agreed to perform specified services for another, the employer, in exchange for payment

127
Q

employers’ organizations

A

bargaining agents representing groups of employers

128
Q

employment equity

A

the correction of employment situations where there has been a tradition of racial, gender, or other imbalance

129
Q

grievance process

A

a procedure for settling disputes arising under a collective agreement

130
Q

in good faith

A

a characteristic of bargaining that makes every reasonable effort to reach an agreement

131
Q

independent contractor

A

a person working for themselves who contracts to provide specific services to another

132
Q

interest dispute

A

disagreement about the terms to be included in a new collective agreement

133
Q

issue estoppel

A

a principle preventing an issue from being litigated again on grounds that it has already been determined in an earlier trial or hearing

134
Q

jurisdictional dispute

A

a disagreement over who has authority; in the labour context, a dispute between two unions over which one should represent a group of employees, or over which union members ought to do a particular job

135
Q

just cause

A

a valid reason to dismiss an employee without notice

136
Q

lockout

A

an action in which the employer prevents employees from working

137
Q

mandatory retirement

A

forced retirement from employment, generally at 65 years

138
Q

mediator

A

a neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives

139
Q

organization test

A

a test used to establish whether a worker is an employee or independent contractor; examines whether the worker is providing services integral to the organizations business

140
Q

pay equity

A

a principle (or statute) requiring equal pay for work of equal value

141
Q

pay in lieu of notice

A

an amount paid to a dismissed employee rather than notice to terminate

142
Q

picketing

A

job action during a legal strike when employees circulate at the periphery of the job site to persuade others not to do business with the struck employer

143
Q

reasonable notice

A

length of notice to be given to an employee to terminate an employment contract of indefinite term; determined with reference to length of service and the nature of the employee’s position, among other factors

144
Q

recognition dispute

A

dispute arising between unions and employers while union is being organized

145
Q

restrictive covenant

A

in property law, a condition imposed by the seller as to what the purchaser can use the land for; in employment law, a committment not to work in a certain geographical area for a designated period of time

146
Q

reverse discrimination

A

prejudice or bias exercised against a person or class to correct a pattern of discrimination against another person or class

147
Q

rights dispute

A

a disagreement about the meaning of a term in a collective agreement

148
Q

secondary picketing

A

picketing by striking employees not just of their own workplace but also of other locations where the employer carries on business

149
Q

strike

A

withdrawl of services by employees

150
Q

union shop

A

a workplace where new employees must join the union

151
Q

work stoppages

A

strikes (initiated by employees) and lockouts (initiated by employers)

152
Q

work to rule

A

job action in which employees perform no more than what is minimally required so as to pressure an employer

153
Q

wrongful dismissal

A

termination of employment without reasonable cause and without notice or pay in lieu of notice

154
Q

annual general meeting

A

a meeting where shareholders elect directors and vote on other important resolutions

155
Q

articles of association

A

internal regulations setting out the procedures for governing a corporation in a registration jurisdiction

156
Q

articles of incorporation

A

a method of incorporating based on a US approach and used in some jurisdictions in Canada

157
Q

auditor

A

a part responsible for ensuring that an organization’s financial statements have been properly prepared

158
Q

bond

A

a share interest in the indebtedness of a corporation

159
Q

broadly held corporations

A

corporations that are publicly traded on the stock market; referred to as distributing corporations in some jurisdictions

160
Q

closely held corporations

A

corporations in which there are relatively few shareholders; referred to as non-distributing corporations in some jurisdictions

161
Q

common shareholders

A

holders of common shares who do not have any preferential rights or privileges

162
Q

common shares

A

shares to which no preferential rights or privileges are attached

163
Q

corporate myth

A

a corporation is a leagl fiction

164
Q

debenture

A

an acknowledgment of debts by a corporation normally involving more than one creditor

165
Q

deeds of settlement

A

contracts used historically for setting up a company

166
Q

derivative action

A

a lawsuit in which certain shareholders are given the right to launch a civil action against the directors on behalf of an injured corporation

167
Q

dissent and appraisal

A

the right of minority shareholders who are adversely affected by major changes to indicate their opposition and force, the company to buy back their shares at a fair price

168
Q

distributing corporations

A

corporations that are publicly traded on the stock market; referred to as broadly held corporations in some jursdictions

169
Q

dividend

A

a payment to shareholders out of corporate profits

170
Q

due diligence

A

doing everything reasonable to avoid the problem leading to the legal liability

171
Q

franchising

A

arrangements based on contracts of service and the supply of products between larger and smaller units of one organization

172
Q

insider knowledge

A

information that affects share pricing that is not publicly known; directors, officers, and large shareholders, among others, cannot profit by improperly using confidential knowledge about the corporation

173
Q

insider trading

A

when officers or people holding significant percentages of the shares of a corporation trade in those shares using their insider knowledge to anticipate a rise or fall in prices

174
Q

letters patent

A

a method of incorporating used in some jurisidictions in Canada whereby the government grants recognition to the company as a separate legal entity

175
Q

limited liability

A

liability is restricted to capital contributed; shareholders are shildeed from liability for the corporation’s debts

176
Q

memorandum of association

A

the constitution of a corporation in a registration jurisdiction

177
Q

non-distributing corporations

A

corporations in which there are relatively few shareholders

178
Q

oppression actions

A

an action against the directors who have allegedly offended the rights of creditors or minority shareholders

179
Q

par-value shares

A

a share with a stated value at issuance (most shares are now no par value)

180
Q

personal guarantee

A

a guarantee of payment for another’s obligation

181
Q

pre-emptive right

A

the right of shareholder to buy new shares in the same proportion as their current ownership of shares

182
Q

preferred shareholders

A

holders of preferred shares who may have a right to vote arising if dividends are not paid

183
Q

preferred shares

A

shares giving the shareholder preference over other classes of shares; that preference often pertains to the payment of dividends

184
Q

promoter

A

a person who participates in the initial setting up of a corporation or who assists the corporation in making a public share offering

185
Q

prospectus

A

a public document disclosing relevant information about a corporation

186
Q

proxy

A

when shareholders designate another person to vote on their behalf at an annual general meeting

187
Q

registration

A

a legislated requirement for incorporating a company in some jurisdictions in Canada

188
Q

representative action

A

a lawsuit where certain shareholders are given the right to launch a civil action against the directors on behalf of an injured corporation

189
Q

securities commission

A

a provincial agency that serves as a watchdog for the stock market

190
Q

separate legal entity

A

the principle that a corporation exists separately from the people who created it

191
Q

share

A

the means of acquiring funds from a large number of sources to run a corporation; an interest in a corporation held by an investor

192
Q

shareholder agreement

A

an agreement among the shareholders of a corporation that sets out the terms of their relationship

193
Q

actual authority

A

authority given to an agent expressly or by implication

194
Q

agency

A

the service an agent performs on behalf of a principal

195
Q

agency agreement

A

an agreement creating an agency relationship between principal and agent

196
Q

agency by necessity

A

consent to act as an agent that is implied when there is an urgent reason

197
Q

apparent authority

A

authority as suggested to a third party by the conduct of a principal; may exist even when there is no actual authority

198
Q

authority

A

the right or power to act or to make a decision

199
Q

corporation

A

a business organization that is a separate legal entity from its owners, the shareholders

200
Q

delegation

A

entrusting someone else to act in one’s place, and agent normally cannot delegate their responsibilities to someone else

201
Q

enduring power of attorney

A

the power to act as the donor’s trustee or representative following the donor’s lack of capacity

202
Q

equitable estoppel

A

the principle that when a gratuitous promise to do something in the future causes a person who relies on that promise to incur an expense, the promisor will not be allowed to enforce other contractual rights that are inconstant with that promise; the promise can only be used as a defence by the promisee; also known as promissory estoppel

203
Q

estoppel

A

an equitable remedy that stops a party from trying to establish a position or deny something that, if allowed, would create an injustice

204
Q

express authority

A

the authority of the agent as actually stated by the principal

205
Q

firm

A

a partnership

206
Q

full disclosure

A

the obligation to reveal all relevant details of a transaction

207
Q

general partner

A

a partner in a limited partnership who liability is unlimited

208
Q

holding corporation

A

a corporation that owns shares in other corporations

209
Q

implied authority

A

when the authority of the agent is implied from surrounding circumstances, such as the position or title given to the agent

210
Q

joint venture

A

the collaboration of several businesses, usually to compete a major project

211
Q

jointly liable

A

under joint liability, all parties must be sued together; partners may face joint liability for debts of the firms

212
Q

limited liability partnership (LLP)

A

a form of partnership in which only the partner responsible for the loss faces unlimited liability

213
Q

limited partner

A

a partner in a limited partnership whose liability is limited to the amount of their investment

214
Q

limited partnership

A

a partnership with general and limited partners

215
Q

non-profit society

A

a separate legal entity with different procedures of incorporation and liabilities of its members than corporations

216
Q

partnership

A

when the ownership and responsibility of a business are shared by two or more people with a view toward profit

217
Q

power of attorney

A

an agency agreement in writing and under seal

218
Q

principal

A

the person who authorizes an agent to represent them

219
Q

promissory estoppel

A

the principle that when a gratuitous promise to do something in the future causes a person who relies on that promise to incur an expense, the promisor will not be allowed to enforce other contractual rights that are inconstant with that promise

220
Q

ratiification

A

when the majority agrees with the terms of a collective bargain; when a principal confirms a contract entered into by their agent

221
Q

severally liable

A

under several liability, each partner can be sued separately

222
Q

sole proprietorship

A

an individual carrying on business alone

223
Q

undisclosed principal

A

a principal whose identity is concealed from the third parties with whom the agent is dealing; the rights and obligations of the aprties depend on whether the agent makes it clear that they are representing an undisclosed principal rather than operating on their own behalf

224
Q

unlimited liability

A

the liability of the sole proprietor or the partners for all debts incurred by the business to the extent of their personal resources

225
Q

utmost good faith

A

a duty to act in the best interest of another (directors and officers, business associates and their employer, agents and their principals, between partners; also known as fiduciary duty)

226
Q

agreement to sell

A

an agreement that title will be transferred at some time in the future

227
Q

bill of exchange

A

a negotiable instrument by which the drawer directs that drawee to pay out money to the payee; drawee need to be a bank, and the instrument may be made payable in the future

228
Q

bill of lading

A

a receipt for goods in the care of the shipper accompanied by contract of carriage terms to move the goods or deliver identical goods to a designated place

229
Q

certified cheque

A

a means of transferring funds by cheque where payment is, in effect, guaranteed by the bank

230
Q

cheque

A

a negotiable instrument consisting of a bill of exchange drawn on a bank, payable on demand

231
Q

CIF (cost, insurance, and freight) contracts

A

sales contracts in which one of the parties has been designated as being responible for paying the costs involved in the shipping of the goods, as well as arranging insurance

232
Q

COD (cash on delivery) contracts

A

sales contracts in which the seller maintains the proprietary rights or title as well as control over the possession of those goods until they are delivered to the buyer’s premises and paid for

233
Q

consumer transactions

A

purchases by individuals of goods or services for personal use and not for resale or for business purposes

234
Q

cooling-off period

A

a statutorily defined periods during which purchasers in door-to-door sales may change their minds and rescind a contract

235
Q

direct sales

A

sales made to consumers at their dwellings or places of business; also known as door-to-door sales

236
Q

drawer

A

the person creating te negotiable instrument

237
Q

endorser

A

the person who signs the back of a cheque, usually assuming the obligation to pay it if the drawee or maker defaults

238
Q

FOB (free on board) contracts

A

sales contracts in which the parties have agreed that the parties have agreed that the seller will bear the risk until a specified point in the transport process

239
Q

holder in due course

A

an innocent third party entitled to collect on a negotiable instrument despite any claims of the original parties

240
Q

lien

A

a claim registered against property, such as a mortgage; a charge giving the creditor the right to retain what is in their possession until their demands for payment are satisfied

241
Q

merchantable quality

A

freedom of goods from defects that, if known, would impact the price

242
Q

promissory note

A

a promise to pay the amount stated on the instrument

243
Q

quiet possession

A

a condition that the seller, or anyone claiming through the seller, will not interfere with the buyer’s use and enjoyment of the property

244
Q

referral selling

A

a type of sales practice in which the purchaser supplies a seller with a list of friends or acquaintances and receives a benefit when sales are made to those people

245
Q

risk

A

potential loss from destruction or damage to goods, injury, or other eventually

246
Q

seller’s lien

A

a seller who holds the goods has a lien against a defaulting purchaser

247
Q

stoppage in transit

A

the seller’s right to stop the shipment during transit in event of default

Commercial Law (1 decks)

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