Quiz 3 Study Guide Flashcards
The contract existing between the consignor and the carrier
Bill of lading
A document of conveyance which provides written evidence of one’s title to tangible personal property
Bill of sale
A seller agrees to transfer title to goods for a consideration (price) at a future time
Contract to sell
A business entity created by statutory law and owned by individuals known as stockholders
Corporation
Those goods which are, at the time of the contract, in existence and owned by the seller
Existing goods
Those goods which are not in existence at the time a contract is agreed to
Future goods
Movable tangible personal property
Goods
The goods specified by the buyer and seller
Identified goods
All property which is not real property
Personal property
The actual and definite statement of a seller, either orally or in writing, at the time of the sale
Express warranty
Warranties imposed by law, arising automatically because the sale has been made
Implied warranty
Guarantees made by a seller that an article, good or service will conform to a certain standard or will operate in a certain manner
Warranty
The party appointed by the principal to enter into a contract with a third party on behalf of the principal
Agent
The authority an agent is believed by third parties to have because of the behavior of the principal
Apparent authority
The authority of an agent, stated in the document or agreement creating the agency
Express authority
An agent’s authority to do things not specifically authorized in order to carry out express authority
Implied authority
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 established in the contract
Independent contractor
A party who appoints a second party to serve as an agent
Principal
A business entity created by statutory law and owned by individuals known as stockholders
Corporation
A relationship of trust and confidence, such as that which exists between partners in a partnership
Fiduciary
Newest form of business ownership recognized in the U.S.; combines features of both the corporation and partnership
Limited liability company
Partners who have their liability for the firm’s debts limited to the amount of their investment.
Limited partnership
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
Those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation.
Share holders (stockholders)
An individual who takes no active part in the management of a partnership, but has capital invested in the business
Silent partner
A business owned by one person who is subject to claims of creditors
Sole proprietorship
Is a creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status.
Sub-chapter S corporation
