Mors 200 Arts Final - Business Law Vocabulary Part 1

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

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

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

Land and those objects permanently attached to land.

A negotiable instrument containing a promise to pay.

Partner unknown to the public with no part in management.

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

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

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.

Operates in the state that granted the charter.

The written request which initiates a civil law suit.

Rate of interest which exceeds the maximum that is allowed.

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.

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

The written request which initiates a civil law suit.

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

The party to initiates, or makes, an offer.

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.

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

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

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.

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

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

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).

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

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

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

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

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

The person who executes any draft.

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.

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

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

A contract which will be enforced by the court.

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

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

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

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

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

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

Official document detailing a defendant's defense.

Laws which seek to promote competition among business.

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

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

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

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

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.

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

The carrying out or completion of some task.

The contracting of services rather than goods.

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

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

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.

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

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

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

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

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

Anything that may be owned.

A decision of a court of law.

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

A person in possession of an instrument.

Stating an untrue fact.

One in possession of a commercial paper.

The individual who initiates a civil action.

One who takes initial steps to form a corporation.

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.

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

Stock reacquired by a corporation.

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.

An offense which is injurious to society as a whole.

An agreement to an offer resulting in a contract.

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

Law enacted by a local government entity.

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.

An agreement of no legal effect.

Courts hearing cases appealed from a lower court.

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

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.

One who ships goods by common carrier.

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.

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

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

Moveable tangible personal property.

Pretrial steps taken to learn the details of the case.

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

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.

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

The person who executes a promissory note.

One that is incorporated in a foreign country.

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

Laws which are enacted by legislative bodies.

Having no words other than the signature of the indorser.

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

To take into police custody.

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.

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

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

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

Canceling, annulling, avoiding.