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Business Law Fundamentals
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Match each statement with the correct term.
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1. Generally - the value given in return for a promise; involves two elements
2. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.
online dispute resolution (ODR)
3. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.
4. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.
5. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.
generally accepted accounting principles (GAAP)
6. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.
7. A trademark in cyberspace.
8. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
9. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.
good faith purchaser
10. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.
11. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.
tenancy by the entirety
12. The act of transferring to another all or part of one's rights arising under a contract.
motion for a new trial
13. A party to whom the rights under a contract are transferred - or assigned.
implied warranty of merchantability
14. Reasonable grounds for believing that a person should be arrested or searched.
15. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events
16. A gift of personal property under a will.
17. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).
18. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.
equal dignity rule
19. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.
20. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.
generally accepted auditing standards (GAAS)
21. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.
act of state doctrine
22. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.
23. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.
peer-to-peer (P2P) networking
24. A person on the board of directors who is also an officer of the corporation.
parol evidence rule
25. Property that is acquired by the debtor after the execution of a security agreement.
26. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.
force majeure clause
27. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ
right of subrogation
accord and satisfaction
28. The process of proving and validating a will and settling all matters pertaining to an estate.
29. The act of transferring to another all or part of one's duties arising under a contract.
delegation of duties
30. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.
motion for judgment n.o.v.
Statute of Frauds
31. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.
32. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.
motion for judgment n.o.v.
good faith purchaser
33. In a given state - a corporation that does business in - and is organized under the law of - that state.
34. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.
35. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.
36. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
37. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.
38. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the
39. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical
principle of rights
40. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).
41. The passing of title to property from the seller to the buyer for a price.
42. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.
43. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.
44. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.
right of reimbursement
45. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.
46. The geographic district in which a legal action is tried and from which the jury is selected.
articles of incorporation
47. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.
articles of incorporation
civil law system
48. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.
standing to sue
49. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.
50. Property with which the owner has voluntarily parted - with no intention of recovering it.
debtor in possession (DIP)
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