Business Law Vocab~ Test #2

Front 1

A wrongful action done by one person which causes damage or injury to another

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TORT

Front 2

A condition that occurs when one person's actions put another in fear of bodily harm

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ASSAULT

Front 3

Unauthorized touching of another's body

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BATTERY

Front 4

The communication of damaging, false information about a person to at least one other person.

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Defamation

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Written defamation

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Libel

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Oral or verbal defamation

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Slander

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protection from liability for slander or libel given under certain circumstances regardless of the fact that the statements are false or maliciously made.

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Absolute privilege

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Protection from liability for defamatory statements only if the defendent uttered them without actual malice or had a good reason for doing so.

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Qualified Privilege

Front 9

Intentional, unlawful, and unconsented restraint by one person of the physical liberty of another

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False Imprisonment

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Most common type of tort; involves a person causing injury to another, by doing some action with less than the amount of care expected of a "reasonable person"

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Negligence

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One of the key elements of a negligence case is that the defendant's lack of care must be the direct cause of the injury to the plaintiff, and that the injury was a "forseeable" result of such negligence

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Proximate cause

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A defense to negligence that asserts that th eplaintiff was also negligent. If applied, this defense results in dismissal of the case

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Contributory Negligence

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A defense to negligence that calls for the jury to assess the negligence of the plaintiff and the defendant, and adjust the damages to reflect the percentage of negligence of the plaintiff

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Comparative Negligence

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A defense to negligence that asserts that the plaintiff knowingly acceted the risks of the activity causing the injury

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Assumption of the risk

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A catagory of negligence in which the defendant has violated a statute intended to protect the public from such conduct

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Negligence per se

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A situation in which the injury-causing incident could not have happened without negligence, and the defendant was in control if the event or premises where the accident occurred.

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res ipsa loquitur

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Defamation of a business or product

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disparagement

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one person intentionally interferes with a contract between two other people or businesses.

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interference with contracts

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the wrongful taking of a nonpublicbusiness secret or asset from one firm and its use by another firm

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misappropriation

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liability without proof of negligence or fault

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strict liability

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one which is inherently dangerous

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ultrahazardous activity

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Damages, in excess of those required to compensate the plaintiff for the wrong done, that are imposed in order to punish the defendant b/c of the particularly wanton or willful character of the wrongdoing

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punitive damages

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a federal law allowing a prosecutor to charge a business firm with racketeering if the firm has engaged in two or more prohibited acts within a 10-yr period. The law contains very serious penalties and can also be used in civil suits.

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Racketeer Influenced and Corrupt Organization Act (RICO)

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A court hearing at which the defendant is asked to respond to the criminal charge by stating 'guilty' or 'not guilty'

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Arraignment

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A court hearing in a criminal case, at which the prosecutor must produce sufficient evidence to show that a crime has been committed and that there is good cause to believe that the defendant committed it.

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preliminary hearing

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the settlement of a criminal case, whereby the prosecutor dismisses one charge if the defendant pleads guilty to another charge

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plea-bargain

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one of several volumes produced by American Law Institute and authored by legal scholars that sets forth statements on the law of contracts. It is widely referred to but not binding

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Restatement of Contracts

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Money or performance awarded by a court

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remedy

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the promise or performance that the promisor demands as the price of the promise in a contract

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consideration

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A contract expressed by conduct or implied or deduced from the facts

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implied in law contract

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Abenefit received by chance, mistake, or at someone else's expense

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unjust enrichment

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An obligation that is not created by a contract but is imposed by law to prevent unjust enrichment of one party from the acts of another party

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quasi contract

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A situation in which one party's reliance on a promise prevents the promisor from denying the existence of a contract

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promissory estoppel

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A contract in which each party makes a promise to the other

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bilateral contract

Front 35

A contract in which one party makes a promise offering some benefit if another party performs a specified act(rather than making a return promise).

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unilateral contract

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a contract in which one party has the option to disaffirm the bargain or back out

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voidable contract

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A contract for which the law gives no court remedy

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unenforceable contract

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a preliminary contract in whihc value is given to the offeror in exchange for keeping the offer open for a specified time

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option contract

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an offer that cannot be revoked, withdrawn, or amended for the time stated

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firm offer

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person who deals with goods of the kind sold in his or her business

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merchant

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a rule that states that in order for an acceptance to exist, the response must be a mirror image of the offer and connot add new terms

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mirror image rule

Front 42

making an offer or acceptance valid when it is deposited in the mail

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mailbox rule

Front 43

withdrawing an offer before it is accepted or mutual agreement to cancel contract

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revocation

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a debt not in dispute

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liquidated debt

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a debt that is disputed

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unliquidated debt

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the threat of physicial intimidation or coercion aimed at forcing individuals to enter into contarcts against their will

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duress

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a situation in which a dominant person, or a person in a position of trust and confidence, takes advantage of another person

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undue influence

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An individual under the legal age to contract

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minor

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a decision not to be bound to a contract

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disaffirm

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to adopt the act even if it was not approved beforehand; to agree to be bound to a contract

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ratify

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an activity in which a woman agrees to give birth to a baby of a mother unable to carry the child

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surrogacy

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a contract so unfair that no reasonable person would enter into it

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unconscionable contract

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standardized contarct forms offered to consumers of goods and services on a 'take-it-or-leave-it' basis

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adhesion contracts

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A state law modeled on the English Statute of Frauds dealing with the enforcement and requirements of agreements in particular circumstances

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Statute of Frauds

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Oral testimony in court about the terms of a written contarct

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parol evidence

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the contract contains all of each party's understanding

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integrated

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A clause in a contract stating that the contract is a complete statement of the agreement and supersedes any prior terms, representations, or agreeements whether made orally or in writing

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merger clause

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A person or entity that is not a party to but has rights under a contract made by 2 other parties

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third-party beneficiary

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a third party beneficiary to a contract whom the parties to the contract did not intend to benefit

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incidental beneficiary

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a direct bebeficiary whom the party paying for the other party's performance intends to benefit as a gift or donation

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donee beneficiary

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a direct beneficiary whom the party paying for the other party's performance intends to benefit as payment for a debt or obligation

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creditor beneficiary

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a present transfer of property or rights

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assignment

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to release from an obligation

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discharge

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a condition that must be fulfilled before performance under a contract can become due, an estate or right already in effect or vested or dischargesnan already existing duty under contract

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condition subsequent

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the repudiation by a promisor of the contract prior to the time that the performance is required when such repudiation is accepted by the promisee as a breach of the contract

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anticipatory breach

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as much as he deserved

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quantum meruit

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damages recoverable in breach of contract cases for losses that include expenses incurred in handling and caring for goods which were the subject of the contract, reasonable expenses incurred in obtaining cover, and any other reasonable expenses resulting from the breach that do not fall into any other catagory

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incidental damages

Front 68

actual damages

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compensatory damages

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damages awarded in an amount deemed to conmpensate for losses that arise not as a natural result of an injury but because of some particular circumstance of the injured party

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consequential or special damages

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damages whose amount is agreed upon by the parties to a contract as adequately compensating for loss in the event of a breach

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liquidated damages

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a court order which requires a seller to perform a contract as agreed

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specific performance

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to take back and make void

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rescind

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a promise that the goods are of the quality indicated

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warranty

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A warranty that is expressed in written or verbal form, or by use of a sample or model

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express warranty

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Mild bragging about an item not specific enough to create a warranty

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puffing

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the implied warranty given to a purchaser by a merchant- that teh item is fit for its ordinary use

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merchantibility

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the implied warranty given when the buyer needs the item for some particular(not regular) purpose and relies on the seller to furnish such an item

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fitness for a particular purpose

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A statement in a warranty that limits or eliminates implied warranties

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disclaimer

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A federal law that requires certain disclosures and provides certain rights to consumers, where written warranties are provided

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Magnuson-Moss Warranty Act

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when 2 parties ahve contract with eachother. this concept is no longer very important in warranty cases

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privity

Front 81

the most common type of tort- that involves an injury caused by another's lack of due care.

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negligence

Front 82

A legal theory that allows a person injured by a defective product to win a lawsuit against the manufacturer without proving 'fault' or lack of due care

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strict product liability

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1. Product was defective 2. Product was unreasonably dangerous 3. Seller was 'in business' of selling these products 4. Product reached the consumer without alteration in the distribution chain

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elements of strict liability

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the duty of vehicle maunfacturers to build cars, trucks. and motorcycles that do not enhance or worsen injuries of persons when involved in accidents

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crashworthiness

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a common law defense against a personal injury claim that states that when an employee knows an activity is dangerous but continues, he or she cannot collect damges

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assumption fo the risk

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when someone uses a product in a way that the manufacturer could not have reasonably forseen

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misuse

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An outer limit on how many years after a product was manufactured that the maker could be held liable for a defect

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statute of repose

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a defense to liability recognized in some states, if the product was made using the best methods then available

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state of the art defense

Front 89

when 2 or more defendants are found liable, the plaintiff can collect the entire award from any one defendant

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joint and several liability

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the theory that when a federal law and a state law govern the same subject and are conflicting, the federal law may displace or cancel the state law

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preemption doctrine

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A model law dealing with the sale of goods, adopted by 49 states, that specifies contract rights and remedies of buyers and sellers (and other issues).

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uniform commercial code (ucc)

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the buyer inspects the goods and says "these are not the correct items"

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rejection

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the buyer's right to purchase substitute goods of the seller fails to deliver the correct goods

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cover

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if the buyer wrongfully refuses to accept the goods, the seller can sell the goods and then sue the buyer for any loss

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resell

Front 95

the seller who delivers nonconforming goods to thebuyer can correct the deficiency if the contract time limit has not expired

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cure

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An ownership interest lasting at least for one's life

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freehold estate

Front 97

the most complete ownership of real property

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fee simple absolute

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A fee simple ownership that may be lost if the property is used in certain ways

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fee simple determinable

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A type of ownership that lasts only for the life of the owner and cannot be extended

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life estate

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A legal right in real property, which will or may become full ownership in the future

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future interest

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A legal right to possession, but not ownership, of real property, such as a lease

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nonfreehold estate

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a tenancy lasting for a certain time

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periodic tenancy

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Ownership of property by two or more persons. Each can sell his share or leave to heirs. Shares do not have to be equal

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tenancy in common

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Ownership of property by 2 or more persons. when one dies, his share is automatically distributed to the co-owners who survive. Joint tenants cannot leave their share to their heirs. Shares must be equal

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Joint tenancy

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A type of joint tenancy for married couples

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tenancy by the entireties

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A type of property ownership for married couples recognized in 9 states, all property bought or acquired during marriage is owned equally by both spouses

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community property

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a written document used to transfer owndership in real property

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deed

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A deed that "warrants" that the buyer is receiving good, clear title to the property

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warranty deed

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A deed that merely conveys what ownership the grantor has without any warranties

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quitclaim deed

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one person obtains title to real property by actually possessing a portion of the property, for a number of years without the permission of the owner

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adverse possession

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An agreement to give a lender a legal right in real property owner by another person

Back 111

mortgage

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the legal interest in property owned by another that allows a creditor to repossess and resell collatoral and to apply the proceeds to pay off the owner's loan

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security interest

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the process by which the holder of the mortgage exercises the legal right to force the sale of property

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foreclosure

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a period of time during which a foreclosed owner can re-acquire the property

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redemption period

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Filing a deed or mortgage in a public records office to give notice to others of the legal interests in the real property

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recording

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a common law theory that allows one owner the right to sue a neighbor if that person's use of his land interferes with the first owner's use and enjoyment of his property

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nuisance

Front 117

a plan developed by a city or county that regulates the uses of land in different "zones" of the city of county

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zoning

Front 118

Permission form a zoning board to use land in a way not allowed by the zoning classification

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variance

Front 119

the power of a state, local, or federal government agency to acquire ownership of property froma private owner for some "public use" after paying fair compensation

Back 119

eminent domain

Front 120

when some governmant action deprives an owner of significant property rights without compensation

Back 120

taking

Front 121

A restriction on the use of real property, contained in a deed. Such covenants are common in subdivision developments

Back 121

restrictive covenant

Front 122

A legal right to use a portion of real property owned by someone else for a specific purpose

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easement

Front 123

property, other than real estate, that has a physical existence

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tangible personal property

Front 124

the legal rights covering such topics as patents, copyrights, trademarks, and trade secrets

Back 124

intellectual property

Front 125

A legal right of the creator or inventor of a product, process, or invention. the patent holder has the exclusive right to use, develop, and license the subject of the patent for 20 yrs

Back 125

patent

Front 126

Unauthorized use of copyrighted or patented material

Back 126

infringement

Front 127

the legal right of an author, composer, or artist to prevent others from copying or reproducing his/her work

Back 127

copyright

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a legal principle, an exemption to a copyright owner's exclusive rights, that allows another to make some limited("fair") use of the copyrighted work without permission

Back 128

"fair use" doctrine

Front 129

a word, phrase, or symbol that identifies and distinguishes a product

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trademark

Front 130

the maufacture and sale, without permission, of goods copyrighted or trademarked by another firm

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piracy

Front 131

a document that states how a person wishes his or her property distributed after death

Back 131

will

Front 132

an amendment to an existing will

Back 132

codicil

Front 133

the person named in the will to carry out the decendent's requests and pay bills and expenses

Back 133

executor

Front 134

when a person dies without leaving a will, the property is ditributed according to state law

Back 134

intestate

Front 135

a legal mechanism by which one person transfers ownership of property to a trustee, who holds, uses, or invests the property for the benefit of another person

Back 135

trust