BMA terminology + concept list

Indictment

A court-issued statement that formally charges an individual with a crime.

Discovery phase

The phase in a legal case where each side learns about the case and attempts to form its argument, often through interviewing witnesses.

Pleadings

Initial papers filed in a lawsuit that explain each side of the argument.

Appeals

After a trial has ended, one side asks for a review of the decision by pointing out errors in the reading.

Appellate

Relating to the appeal process.

Litigation process

The process of a legal case, including pleading, pretrial, trial, and appellate stages.

Substantive laws

Laws that govern how society members behave.

Arbitration

A binding process that replaces a trial, where a judgment is passed down by a neutral party based on the evidence given.

Mediators

Third-party individuals who guide discussions and resolve conflicts.

Acquittal

When a jury finds that a person is not guilty of a tort or crime.

Probate courts

Courts that deal with cases involving wills and estates.

Preponderance of evidence

The level of proof required in a civil case to show wrongdoing.

Due process

The right of a person to be heard in court.

Habeas corpus

A legal petition that challenges imprisonment procedures and policies.

Eminent domain

A law that allows the government to take private property for public use, with compensation to the owner.

Injunction

A court order that requires a defendant to stop engaging in a specific activity.

Non-compete contract

An agreement between an employee and employer stating that the employee will not work for a competitor if they leave the company or are fired.

Full disclosure

The requirement that financial statements or documents include all necessary information for them to be understood.

Legally binding contracts

Contracts that clearly outline an agreement, helping to avoid disputes and litigation.

Master-servant

Agency relationships in law.

Concurrent jurisdiction

The authority a court has to resolve a specific issue.

Voir dire

The process of selecting members of a jury for trial.

Deposition

A witness's testimony that is taken and recorded outside of the courtroom.

Summons

A court's formal request for a person to perform a specific activity.

Procedural laws

Written rules that govern the way substantive laws are enforced.

Transfer risk

A statement indicating that a team is not liable.

Legal procedure

The process of reviewing disputes or claims and resolving them.

Equitable remedies

Actions taken to perform or not perform certain activities, rather than awarding money damages.

Court website

A website that provides rules, forms, decisions, and contact information for a court.

Constitution's sixth amendment

The right of a defendant to request a jury trial.

Consideration

What one party gives or receives in exchange for something.

Grand jury

A jury that reviews evidence and information about a situation or case.

Care

A tort duty that requires people to behave in a socially acceptable and responsible manner.

Secondary liable

On a negotiable instrument, requiring drawers and endorsers to fulfill the contract if makers and acceptors dishonor it.

Bilateral contract

A legally valid contract where both parties promise to perform certain activities or fulfill obligations.

Trademark

A mark used for business activities that is applied with the government.

Indicator of economic health

Various factors such as the number of orders for durable goods, gross domestic product, industrial production levels, rate of inflation, number of new jobs, and number of housing starts.

Federal statutes

Laws written and passed by the U.S. Congress.

U.S

The supreme primary source of law in the United States.

State laws and administrative agencies

Sources of primary law.

U.S

The highest court in the United States that interprets laws.

Regulations

Rules that dictate how laws will be enforced.

Express authority

Specific directions given by a principal to an agent.

Government regulation

Rules and regulations enforced by the government to protect the rights of businesses.

Inevitable disclosure

The likelihood that workers will share their current employer's trade secrets with future employers.

Professional liability insurance

Insurance that limits financial losses if a client files a lawsuit against a business professional.

Workers' compensation insurance

Insurance that provides benefits to employees who are injured on the job.

Trade restraints

Actions that restrict competition among businesses, such as horizontal and vertical restraints.

Government does not ensure business's profitability

The government does not guarantee that a business will be profitable.

Criminal punishments often involve prison sentences while tort punishments do not

Criminal convictions can result in imprisonment, while tort cases typically involve monetary damages.

Various regulations control how the ownership of goods is transferred to prevent trade restraints

Regulations are in place to prevent anti-competitive behavior and promote fair trade practices.

Gambling online is difficult to prosecute under traditional law

Online gambling can be challenging to enforce due to the accessibility of the internet.

When an employee invents a product on behalf of their employer, the employer owns the patent rights if the employee signs an agreement transferring ownership

The employer owns the rights to the invention if the employee agrees to transfer ownership.

Offer + acceptance meet agreement provision

For a contract to be valid, there must be an offer, acceptance, and agreement on the terms.

Prices remain stable when a nation's inflation rate is low

Low inflation rates generally result in stable prices.

Attorneys need to choose jurors likely to rule in favor of their clients

Attorneys aim to select jurors who are likely to be sympathetic to their client's case.

The judge controls proceedings in a civil trial

The judge is responsible for overseeing the trial and ensuring fairness.

Court cannot enforce a contract when the agreement's purpose is unlawful

Courts cannot enforce contracts that involve illegal activities.

Finance

The management of money and financial decisions in a business.

Equity

The total net worth of a business, calculated by subtracting liabilities from assets.

Gross profit

The income from sales minus the cost of goods.

Net profit

The gross profit minus operating expenses.

Total revenue

The total income generated from sales.

Return on investment

A measure of the success of a specific business activity, calculated by dividing net profit by the amount spent.

Price-to-cash-flow ratio

A ratio used to determine the relative worth of a potential investment, calculated by dividing the current stock price by the cash flow per share.

Account holder

A person who compares bank statements with their checkbook to identify problems or discrepancies.

Compensatory damage

Damages awarded to put the plaintiff in the same position before a contract breach, calculated as the difference between the contract price and the market price.

Incidental damages

Additional damages awarded on top of compensatory damages.

Working capital management

The management of a business's current balance of assets and liabilities.

Budget

An estimate of a business

Fair competition

The need for competition to be fair and regulated.

Monopolies

Monopolies are allowed to exist only if regulated.

Poverty

Despite efforts, poverty has not been eliminated.

Exclusive agreements + price fixing

These practices are illegal.

Economic freedom

There are limits to economic freedom and personal choices.

Public corporation

A corporation owned by stockholders, with strict tax reporting laws, dual taxation, and limited personal liability.

Corporation

A form of ownership owned by stockholders, with limited liability for each owner.

Monopoly

Allowed to exist in the public interest.

Profit-and-loss statement

A statement that shows a business's revenue, cost of goods sold, operating expenses, and both gross and net profit.

Accounts receivable

Money owed to a business by its customers.

Accounts payable

Money owed by a business.

Cash flow

The movement of funds into and out of a business.

Reverse distribution

The process of retrieving capital goods for reuse, recycling, or disposal.

Economies

Systems in which people make and spend their incomes.

Loss leader

A product that is sold below cost.

Profit motive

The primary incentive for starting a business.

Cash-value

Life insurance that pays out the stated value of the policy at the time of death.

Liability insurance

Insurance that protects property owners if someone else is injured on or by their property.

Bodily injury

Liability insurance that protects vehicle owners when they cause injury to others.

Universal life insurance

Life insurance that allows the insured to grow savings tax-free and adapt to meet insurance needs at any stage of life.

Long-term care insurance

Insurance needed if one loses independence due to physical or mental limitations.

Bookkeepers

Individuals who compile income statements.

Financial leverage

Tools a business has to increase wealth or assets.

Liquidate

The process of converting assets to cash by selling them on the open market.

Zero-based budget

A budgeting approach that requires managers to justify every expense within a set time period.

Master budget

A comprehensive budget for an entire company, including all company functions.

Captive insurance companies

Companies that form their own insurance companies to control premium rates and the claims process.

Accounting

The process of record-keeping and providing information about a company's finances.

List prices

Prices established by a seller, not affected by customer complaints.

Endorsement

Approval by a reputable external source.