Unit 4 terms law

bailee

the party who acquires possession but not the title of another’s personal property under agreement

bailment

the transfer of possession but not the title of another’s personal property under agreement

bailor

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

employee

a person hired to perform work that is directed and controlled by the employer

employer

The party who employs employees to do certain work

agent

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

general agent

one who is given broad authority to conduct the principals business

implied authority

an agents authority to do things in order to carry out express authority

independent contractor

one who contracts to do jobs and is controlled only by the contract as to how performance is to be render

special agent

one authorized by the principal to execute specific acts

commercial paper

governs negotiable instruments like promissory notes, drafts, and checks, which function as substitutes for money or promises to pay

negotiable instrument

signed document that promises a payment to a specified person or assignee

promissory note

is a written, binding contract in which one party makes an unconditional promise to pay a specific sum of money to another party by a certain date or on demand

certificate of deposit

is a legally binding time-deposit contract where a depositor locks a fixed sum of money with a bank or credit union for a specified term in exchange for guaranteed interest

maker

most commonly refers to the person who signs a promissory note and takes primary responsibility for paying back a loan

payee

legal and financial terms is a person or organization designated to receive a payment

draft

is a binding written order where one party tells a second party (such as a bank) to pay a specific sum of money to a third party

check

formally classified as a negotiable demand draft or a negotiable instrument drawn on a bank

certified check

A check is a personal check that a bank has verified, signed or stamped, and guaranteed by setting aside the specific funds from the account holder's balance

cashiers check

is a check issued, signed, and guaranteed by a bank or financial institution using its own funds rather than a personal or business account

drawer

The person who writes and signs the check or financial instrument

drawee

The financial institution or bank ordered to make the payment out of the drawer’s funds

order paper

An official daily document detailing the schedule, order of proceedings, and items for debate in a legislative chamber

bearer paper

a negotiable financial document or security that is payable to whoever physically possesses it rather than a specific named person

Negotiation

a consensual bargaining process where two or more parties communicate directly or through representatives to reach a mutually acceptable agreement, settle a dispute, or establish the terms of a contract

Sole proprietorship

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

Partnership

The voluntary association of two or more people as co-owners of a business

General partnership

Actively and openly engaged in business

silent partnership

Has no part in the firm

Secret partnership

Active partner but unknown to the public

Nominal partnership

Person who pretends to be a partner

Dormant partnership

Partner unknown to the public with no part in management

Limited partnership

Partner whose liability for the firm's debts is limited to the amount of their investment

Limited liability companies

a hybrid business structure that protects owners' personal assets from company debts while offering flexible, pass-through taxation

Corporation

A business entity created by statute and owned by stockholders

Public corporation

One formed for government function

Private corporation

One formed to do a nongovernmental function

Alien corporation

One incorporated in another country

Foreign corporation

All other states

Domestic corporation

One chartered in the state where it received its initial charter

Close corporation

One with a very small number of shareholders

Subchapter S corporation

a special tax status that allows a business to pass income, losses, deductions, and credits directly to shareholders to avoid double taxation

Stockholders\shareholders

Those having title to one or more shares of stock in a corporation

Board of directors

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

Promoter

A person or  group of people who come together with an idea for setting up a business at a particular place and incorporate a company to achieve it

Capital stock

The shares of ownership that have been issued by a corporation

Common stock

Simplest form of stock and the normal type issued

Preferred stock

Stock giving special advantage or preference to the holder

Par value

Stock with assigned face value

Treasury stock

Stock reacquired by the corporation

Uniform Commercial Code (UCC)

A group of laws that deal with commercial/ business transactions

model act that includes provisions concerning certain sales of goods and negotiable instruments

Personal Property

movable tangible property

intangible personal property

personal property lacks physical presence

service Contracts

contract who’s subject matter predominately involves service

sale

transfer of title for consideration

contract to sell

agreement to sell goods at a future time

price

consideration stipulated by contract

existing goods

at time of sell in existence and owned by the seller

future goods

at time of sell in existence and not owned by the seller in production

bill of lading

contract between cosigner and carrier

identified goods

goods specified by buyers and sellers

FOB destination

seller assumes risk of loss until goods are delivered by them to buyers store

FOB shipement

terms require seller to ship goods by carrier without any particular destination stated the risk of loss is the buyer as soon as goods are delivered to carrier

bill of sale

proof of sale

warranties

assurance to customers

express warranty

indefinite statement of the seller at time of sale

implied warranty

imposed by law and rise automatically when sale takes place

antitrust law

promote fair competition

goods

moveable tangible personal property

Sherman antitrust act

outlaws contracts combination in restraint of trade stops monopolize

usurious

max amount of interest allowed