| A | B |
|---|
| Foreign Corrupt Practices Act | Addresses accounting transparency requirements; prohibits bribery of foreign officials; applies to any citizen, national, resident of the U.S., and any business entity organized under U.S. laws |
| Implied Warranty of Merchantability | Customer should expect a product to reasonable conform to an ordinary buyer's expectations...In other words, a product should be as they seem. You buy a new radio, it is a reasonable expectation that the radio work; a disclaimer can VOID an implied warranty of merchantability (Ex. "Sold as is", "With all Faults"); This warranty is not in writing |
| Express Warranty | Warranty that is clearly stated (verbally or in writing) |
| Malice | The intent or desire to do evil; ill-will |
| Coercion | The practice of persuading/forcing someone to do something by using force or threats; coercion can be used as a defense if you're forced to do something illegal |
| Force Majeure | Allows parties (in a contract) to suspend or terminate the performance of its obligations when certain circumstances beyond their control arises (ex. war, riots, fire, strikes, prolonged energy shortage, etc.) |
| Voir Dire | The process of questioning prospective jurors (jury selection) |
| Utilitarianism | Theory that essentially states that a law's usefullness should be defined its ability to increase happiness, wealth, or justice |
| Bilateral Contract | What most contracts are; one party promises a certain action to another person in response to that person's action; a contract between two or more people/groups |
| Unilateral Contract | Involves an action undertaken by one person or group alone; allows only one person to make a promise or agreement; Ex. Reward offers, insurance contracts |
| Corporate Malfeasance | Describes major and minor crimes that might be committed by officers of a corporation; Ex. Knowingly polluting air and water resources, discriminating against employees, defrauding investors by issuing false financial reports, etc. |
| Short Swing Profit | Any profit made by a company insider from the purchase and sale of company stock if both transactions occur within a 6-month period |
| Company Insider | Any officer, director, or holder of more than 10% of the company's shares |
| Chapter 11 Bankruptcy | Allows for reorganization of businesses |
| Chapter 13 Bankruptcy | Individual debt adjustment (personal bankruptcy) |
| Quasi Contracts | When an obligation is imposed by law to prevent unjust enrichment (free benefits/services); Think of the practice test question where the doctor was allowed to bill the person on the street that they administered emergency medical help to; Not a true contract because mutual assent (agreement) is not necessary |
| Import Quotas | Limit on the quantity of good that can be produced abroad and sold domestically; a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time |
| Appropriation | Act of setting apart something for its application to a particular usage, to the exclusion of all other uses; Ex. In budgets, money is appropriated for certain uses and cannot be used for other things |
| Novation | The substitution of a new contract for an old one; ordinarily arises when a new individual assumes an obligation/duty to pay that was incurred by the original party to the contract; the original debtor is totally released from the obligation, which is transferred to someone else |
| Statute of Limitations | Law which forbids prosecutors from charging someone with a crime that was committed more than a specified number of years ago |
| State Statute of Repose | Statute that cuts off certain legal rights if they are not acted on by a certain deadline; Similar to statute of limitations, but deadlines are observed more strictly |
| Uniform Partnership Act | Governs the formation and operation of business partnerships in the U.S. |
| Bailment Contract | Transfer of personal property by one party (Bailor) to another party (Bailee), but NOT for the sake of possession (it's for a particular purpose); implied contract; Bailee is under obligation to take good care of the property in their possession; Ex. giving clothes to a dry cleaner, leaving a car with a mechanic, giving cash to a bank |
| Doctrine of Respondeat Superior | An employer is responsible for the actions of employees performed within the course of their employment |
| Condition Precedent | An event which must occur before performance under a contract becomes due (Ex. you wouldn't pay someone for cutting your grass until they cut your grass) |
| Rescission | The unwinding of a transaction and/or contract; brings both parties as far back as possible to the position they were in before entering into the contract |
| Exculpatory Clause | A provision in a contract under which: one party is relieved of any blame/liability arising from the other party's wrongdoing OR one party (usually the one making the offer) is freed of all liability arising out of performance of that contract; Ex: A dry cleaner's receipt includes a disclaimer freeing him or her from any liability for damage to the item to be cleaned during the dry cleaning process |
| Legislative Enactment | Another word for Statute |
| Employment at Will Doctrine | Idea that employment is for an indefinite period and may be terminated by employer or employee at any time |
| Liquidated Damages | Monetary compensation for a loss, detriment, or injury to a person or person’s property awarded by a court or by contract stipulation regarding breach of contract; Contracts involving money often have this; it establishes a predetermined sum that must be paid if a party fails to perform as promised |
| Intended Beneficiary | A third party beneficiary; Third party benefits from a contract acquiring rights under the contract; Also known as Direct Beneficiary; Ex. Fergus wants to give his wife, Fiona, something nice for Arbor Day. He buys her a subscription from a flower-of-the-month company. Fergus gives the firm his information as the purchaser and his wife's information as the recipient. Fiona is thereby the intended beneficiary on the contract. If the flowers are not delivered in accordance with the terms of the contract, Fiona would have the legal authority to seek a remedy on her own. |
| Composition of Creditors | A contract made by someone in debt with two or more creditors; Creditors agree to accept one specific partial payment of the total amount of their claims, which is to be divided pro rata among them; this payment fulfills all of the debtor's obligations |
| Proximate Cause | An event that relates to an injury; Were there forseeable risks associated with that action/event? Did it cause the injury? |
