Vocab- Business Law

Question 1

An agreement to an offer resulting in a contract.

Answer 1

Acceptance

Question 2

An agreement made an executed in satisfaction of the rights one has from a previous contract.

Answer 2

Accord and Satisfaction

Question 3

The party appointed by the principal to enter into a contract with a third party on behalf of the principal.

Answer 3

Agent

Question 4

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.

Answer 4

Agency

Question 5

One that is incorporated in a foreign country.

Answer 5

Alien Corporation

Question 6

Official document detailing a defendant’s defense.

Answer 6

Answer

Question 7

Laws which seek to promote competition among business.

Answer 7

Antitrust

Question 8

The authority an agent is believed by third parties to have because of the behavior of the principal.

Answer 8

Apparent Authority

Question 9

Request to a higher court to review a lower court’s decision.

Answer 9

Appeal

Question 10

Courts hearing cases appealed from a lower court.

Answer 10

Appellate Courts

Question 11

Charging a person with a crime and asking for that person’s plea.

Answer 11

Arraignment

Question 12

To take into police custody.

Answer 12

Arrest

Question 13

The party to whom the assignment is made.

Answer 13

Assignee

Question 14

A means whereby one party in a contract conveys rights to another person, who is not a party to the original contract.

Answer 14

Assignment

Question 15

The party making the assignment.

Answer 15

Assignor

Question 16

Power to act for someone else.

Answer 16

Authority

Question 17

The party who acquires possession but not the title, of personal property by one party to another, under assignment.

Answer 17

Bailee

Question 18

The transfer of possession, but not the title of personal property by one party to another, under agreement.

Answer 18

Bailment

Question 19

The party who gives up possession, but not the title of personal property in a bailment.

Answer 19

Bailor

Question 20

A person in possession of an instrument.

Answer 20

Bearer

Question 21

A commercial paper made payable to bearer, i.e. the person having possession of such.

Answer 21

Bearer Paper

Question 22

Recipient of the proceeds of a life insurance policy; one who inherits property as specified in a will.

Answer 22

Beneficiary

Question 23

A contract which consists of mutual promises to perform some future acts.

Answer 23

Bilateral Contract

Question 24

The contract existing between the cosignor (shipper) and the carrier.

Answer 24

Bill of Lading

Question 25

A document of conveyance which provides written evidence of title to tangible personal property.

Answer 25

Bill of Sale

Question 26

Having no words other than the signature of the indorser.

Answer 26

Blank Indorsement

Question 27

A body of persons elected by the stockholders to define and establish corporate policy.

Answer 27

Board of Directors

Question 28

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.

Answer 28

Booking

Question 29

A situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in the contract.

Answer 29

Breach of Contract

Question 30

Those rules of conduct prescribed by a government and its agencies in regulating business transactions.

Answer 30

Business Law

Question 31

A check drawn on a bank’s own funds and signed by a responsible bank official.

Answer 31

Cashier’s Check

Question 32

The acknowledgement by a bank of a receipt of money with an agreement of repayment.

Answer 32

Certificate of Deposit

Question 33

A check for which the bank assures that the drawer has sufficient funds to make payment.

Answer 33

Certified Check

Question 34

An order by a depositor on the bank to pay a sum of money to a payee.

Answer 34

Check

Question 35

The body of law concerned with private or purely personal rights.

Answer 35

Civil Law

Question 36

A designation which applies to a corporation in which an outstanding share of stock and managerial control are held by a limited number of people (often members of the same family).

Answer 36

Close (Closely Held) Corporation

Question 37

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.

Answer 37

Commercial Paper, Negotiable Instrument

Question 38

Customs which have become recognized by the courts as binding on the community.

Answer 38

Common Law

Question 39

An award paid to the injured party to cover the exact amount of their loss, but no more.

Answer 39

Compensatory Damages

Question 40

The written request which initiates a civil law suit.

Answer 40

Complaint (Petition)

Question 41

That which the promisor demands and receives as the price for a promise.

Answer 41

Consideration

Question 42

One to whom goods are shipped by common carrier.

Answer 42

Consignee

Question 43

One who ships goods by common carrier.

Answer 43

Consignor

Question 44

An agreement between two or more competent persons which is enforceable by law.

Answer 44

Contract

Question 45

A seller agrees to transfer title to goods to the buyer for a consideration (price) at a future time.

Answer 45

Contract to Sell

Question 46

The necessity that the parties desiring to enter into contracts meet all requirements.

Answer 46

Contractual Capacity

Question 47

A business entity created by statutory law and owned by individuals known as stockholders.

Answer 47

Corporation

Question 48

An intended acceptance which changes or qualifies an original offer, and in effect, rejects that offer and becomes a new offer.

Answer 48

Counteroffer

Question 49

A person who is not a party to a contract to whom the promisor of a contract owes an obligation or duty.

Answer 49

Creditor Beneficiary

Question 50

An offense which is injurious to society as a whole.

Answer 50

Crime

Question 51

Laws dealing with crimes and the punishment of wrongdoers.

Answer 51

Criminal Law

Question 52

The person against whom legal action is brought.

Answer 52

Defendant

Question 53

The repudiation of, or election to avoid, a voidable contract.

Answer 53

Disaffirmance

Question 54

Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law.

Answer 54

Discharge

Question 55

Pretrial steps taken to learn the details of the case.

Answer 55

Discovery

Question 56

Operates in the state that granted the charter.

Answer 56

Domestic Corporation

Question 57

A third party beneficiary to whom no legal duty is owed and for whom performance is a gift.

Answer 57

Donee Beneficiary

Question 58

A written order signed by one person requiring the person to whom addressed to pay a particular sum of money, to order or bearer, on demand or at a certain time.

Answer 58

Draft

Question 59

The person, company or financial institution ordered to pay a draft.

Answer 59

Drawee

Question 60

The person who executes any draft.

Answer 60

Drawer

Question 61

A means of removing one’s free will, obtaining consent by means of a threat to do harm to the person, his family, his property, or his earning power.

Answer 61

Duress

Question 62

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.

Answer 62

Employee

Question 63

The party who hires people to do certain work.

Answer 63

Employer

Question 64

Contracts in which the terms have ben fulfilled.

Answer 64

Executed Contract

Question 65

The carrying out or completion of some task.

Answer 65

Execution

Question 66

Those contracts in which the terms have not been completely executed or fulfilled by the parties.

Answer 66

Executory Contract

Question 67

Those goods which are, at the time of the contract, in existence and owned by the seller.

Answer 67

Existing Goods

Question 68

The authority of an agent, stated in the document of agreement creating the agency.

Answer 68

Express Authority

Question 69

A contract in which the parties express their intentions, either orally or in writing at the time of the agreement.

Answer 69

Express Contract

Question 70

The actual and definite statement of a seller, either orally or in writing, at the time of the sale.

Answer 70

Express Warranties

Question 71

A more serious criminal offense that is punishable by death or imprisonment in a penitentiary for more than one year.

Answer 71

Felony

Question 72

A relationship of trust and confidence, such as that which exists between partners in a partnership.

Answer 72

Fiduciary

Question 73

Designation that applied when a corporation operates in any state other than where it is chartered.

Answer 73

Foreign Corporation

Question 74

Those contracts which must be in special form or produced in a certain way, such as under seal.

Answer 74

Formal Contract

Question 75

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.

Answer 75

Fraud

Question 76

Goods which are not in existence at the time a contract is agreed to.

Answer 76

Future Goods

Question 77

One who is authorized to execute the principal’s business of a particular kind, or all the principal’s business at a particular place, if not all of one kind.

Answer 77

General Agent

Question 78

Those individuals actively and openly engaged in the business and held out to everyone as a partner.

Answer 78

General Partner

Question 79

Moveable tangible personal property.

Answer 79

Goods

Question 80

One in possession of a commercial paper.

Answer 80

Holder

Question 81

A person in possession of a negotiable instrument who accepts the negotiable instrument in good faith and for value.

Answer 81

Holder in Due Course

Question 82

The goods specified by the buyer and seller.

Answer 82

Identified Goods

Question 83

An agent’s authority to do things not specifically authorized in order to carry out express authority.

Answer 83

Implied Authority

Question 84

One in which terms of the contract are implied by acts or conduct of the parties.

Answer 84

Implied Contract

Question 85

Warranties imposed by law, arising automatically because the sale has been made.

Answer 85

Implied Warranties

Question 86

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.

Answer 86

Independent Contractor

Question 87

A person who becomes the holder of a negotiable instrument by indorsement which names him or her as the person to whom the instrument is negotiated.

Answer 87

Indorsee

Question 88

The signature or statement of purpose by the owner on the back of negotiable instrument, which indicates the future control of the instrument.

Answer 88

Indorsement

Question 89

Person who writes his or her name on the back of an instrument.

Answer 89

Indorser

Question 90

A permanent judicial order or decree forbidding the performance of a certain act.

Answer 90

Injunction

Question 91

Persons who are afflicted with a serious mental disorder impairing their ability to function.

Answer 91

Insane

Question 92

Evidences of ownership of personal property such as stock of corporations, checks and copyrights.

Answer 92

Intangible Personal Property

Question 93

Persons who are under the influence of alcohol to the extent that their judgement may be impaired.

Answer 93

Intoxication

Question 94

A decision of a court of law.

Answer 94

Judgement

Question 95

Rules of conduct commanding what is right and prohibiting what is wrong.

Answer 95

Law

Question 96

Newest form of business ownership recognized by the U.S.; combines features of both the corporation and partnership.

Answer 96

Limited Liability Corporation

Question 97

Partners who have their liability for the firm’s debts limited to the amount of their investment.

Answer 97

Limited Partner

Question 98

The amount of the damages stipulated in a contract to be paid in the event one party breaches the contract.

Answer 98

Liquidated Damages

Question 99

The person who executes a promissory note.

Answer 99

Maker

Question 100

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.

Answer 100

Malpractice

Question 101

A person who deals in goods of the kind, or otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction.

Answer 101

Merchant

Question 102

Those persons under legal age; in most states (but not all), the standard is under the age of eighteen.

Answer 102

Minor

Question 103

A less serious criminal offense, generally punishable by fine and/or imprisonment of less than one year.

Answer 103

Misdemeanor

Question 104

Stating an untrue fact.

Answer 104

Misrepresentation

Question 105

Items, required or proper and useful, for sustaining a human being at an appropriate living standard. (Examples: food, clothing and shelter).

Answer 105

Necessaries

Question 106

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).

Answer 106

Negligence

Question 107

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.

Answer 107

Negotiable Instrument (Commercial Paper)

Question 108

The act of transferring ownership of a negotiable instrument to another party.

Answer 108

Negotiation

Question 109

A token award to symbolize vindication of the wrong done to the plaintiff; generally, the award is $1.00.

Answer 109

Nominal Damages

Question 110

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.

Answer 110

Novation

Question 111

The proposal to make a contract.

Answer 111

Offer

Question 112

The person to whom an offer is made.

Answer 112

Offeree

Question 113

The party to initiates, or makes, an offer.

Answer 113

Offeror

Question 114

A commercial paper made payable to the order of some named party; the word order or its equivalent must be used.

Answer 114

Order Paper

Question 115

Law enacted by a local government entity.

Answer 115

Ordinance

Question 116

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.

Answer 116

Partnership

Question 117

The party to whom any negotiable instrument is made payable.

Answer 117

Payee

Question 118

All property which is not real property.

Answer 118

Personal Property

Question 119

The written request which initiates a civil law suit.

Answer 119

Petition (Complaint)

Question 120

The individual who initiates a civil action.

Answer 120

Plaintiff

Question 121

The consideration stipulated by contract, generally expressed in monetary terms.

Answer 121

Price

Question 122

A party who appoints a second party to serve as an agent.

Answer 122

Principal

Question 123

A corporation formed by individuals to carry out some non-governmental function.

Answer 123

Private Corporation

Question 124

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.

Answer 124

Process (Summons)

Question 125

An equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment.

Answer 125

Promissory Estoppel

Question 126

A negotiable instrument containing a promise to pay.

Answer 126

Promissory Note

Question 127

A business owned by one person who is subject to claims of creditors.

Answer 127

Proprietorship

Question 128

A corporation formed to carry out government functions.

Answer 128

Public Corporation

Question 129

An award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff.

Answer 129

Punitive Damages

Question 130

An indorsement which limits the liability of the indorser.

Answer 130

Qualified Indorsement

Question 131

Confirming an act which was executed without authority or an act which was voidable.

Answer 131

Ratification

Question 132

Land and those objects permanently attached to land.

Answer 132

Real Estate (Real Property)

Question 133

Canceling, annulling, avoiding.

Answer 133

Recission

Question 134

Refusal to accept.

Answer 134

Rejection

Question 135

An indorsement which prevents the use of the instrument for anything except the stated use.

Answer 135

Restrictive Indorsement

Question 136

The annulment or cancellation of an instrument, act, or promise by the one doing or making the offer.

Answer 136

Revocation

Question 137

The transfer of title to goods from the seller to the buyer for consideration called the price.

Answer 137

Sale

Question 138

The contracting of services rather than goods.

Answer 138

Service Contracts

Question 139

Those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation.

Answer 139

Shareholders (Stockholders)

Question 140

Federal legislation intended to promote competition among businesses by prohibiting restraint of trade.

Answer 140

Sherman Antitrust Act

Question 141

An individual who takes no active part in the management of a partnership, buy has capital invested in the business.

Answer 141

Silent Partner

Question 142

Any contract other than a formal contract, whether written, oral, or implied.

Answer 142

Simple Contract

Question 143

A business owned by one person who is subject to claims of creditors.

Answer 143

Sole Proprietorship

Question 144

One authorized by the principal to execute specific act(s).

Answer 144

Special Agent

Question 145

An indorsement which designates the particular person to whom payment is to be made.

Answer 145

Special Indorsement

Question 146

A contract remedy by which the court requires the breaching party to perform the contract.

Answer 146

Specific Performance

Question 147

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.

Answer 147

Stare Decisis

Question 148

A statute originally enacted by English Parliament, and now enacted in some form in all of the American states, listing certain types of contract which could only be enforced if in written form.

Answer 148

Statute of Frauds

Question 149

A law that restricts the period of time within which an action may be brought to court.

Answer 149

Statute of Limitations

Question 150

Laws which are enacted by legislative bodies.

Answer 150

Statutes

Question 151

A creation of the tax codes in which shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status.

Answer 151

Subcharter S Corporation

Question 152

Person not party to a contract, but whom parties intended to benefit.

Answer 152

Third Party Beneficiary

Question 153

A private or civil wrong, other than by breach of contract, for which there may be action for damages.

Answer 153

Tort

Question 154

Court which conducts the original trial and renders its decision.

Answer 154

Trial Court

Question 155

Improper influence that is asserted by one dominant person over another, without the threat of harm.

Answer 155

Undue Influence

Question 156

An agreement which at the current time is not enforceable by law.

Answer 156

Unenforceable Contract

Question 157

Recognized as the most important statute in business law, it includes provisions which regulate certain sales of goods and negotiable instruments.

Answer 157

Uniform Commercial Code

Question 158

A contract formed when an act is done in consideration for a promise.

Answer 158

Unilateral Contract

Question 159

Exceeding the maximum rate of interest which may be charged on loans.

Answer 159

Usurious

Question 160

Rate of interest which exceeds the maximum that is allowed.

Answer 160

Usury

Question 161

A contract which will be enforced by the court.

Answer 161

Valid Contract

Question 162

An agreement of no legal effect.

Answer 162

Void Contract

Question 163

An agreement which would be an unenforceable agreement, but due to circumstances, may be set aside by one of the parties.

Answer 163

Voidable Contract

Question 164

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.

Answer 164

Warranty