slovarček ang

8/13/2019 slovarek ang

1/24

1.2. CONSTITUTIONAL AND ADMINISTRATIVE LAW:

abuse of discretionn. a polite way of saying a trial judge has made such a bad mistake ("clearly against reason and evidence" oragainst established law) during a trial or on ruling on a motion that a person did not get a fair trial. A court ofappeals will use a finding of this abuse as a reason to reverse the trial court judgment. Examples of "abuse of

discretion" or judges' mistakes include not allowing an important witness to testify, making improper commentsthat might influence a jury, showing bias, or making rulings on evidence that deny a person a chance to tell his orher side of the matter

administrative lawn. the procedures created by administrative agencies (governmental bodies of the city, county, state or federalgovernment) involving rules, regulations, applications, licenses, permits, available information, hearings, appealsand decision-making. Federal agency procedures are governed by the Administrative Procedure Act, and manystates have adopted similar procedural formats either by law or regulation.

Bill of Rightsn. the first ten amendments to the federal Constitution demanded by several states in return for ratifying theConstitution, since the failure to protect these rights was a glaring omission in the Constitution as adopted in

convention in 1787. Adopted and ratified in 1791, the Bill of Rights are: First: Prohibits laws establishing a religion(separation of church and state), and bans laws which would restrict freedom of religion, speech, press (nowinterpreted as covering all media), right to peaceably assemble and petition the government. Second: A "wellregulated Militia, being necessary to the security of a free state, the right of the people to keep and bear Arms,shall not be infringed." This is often claimed as giving the unfettered right of individuals to own guns, but isactually limited to the right of "the" people, meaning the body politic or the public as a group, to bear arms asmilitiamen Third: No quartering of soldiers in private homes without the owner's consent. Fourth: No unreasonablesearch and seizures, no warrants without probable cause, and such warrants must be upon "oath or affirmation"and describe the place to be searched or the person or things to be taken. Fifth: Prohibits criminal charges fordeath penalty ("capital punishment") or any other "infamous" crime (felony) without indictment by a Grand Juryexcept under martial law in the time of war or "public danger"; no person may be tried twice for the same offense;no one may be compelled to be a witness against himself ("taking the Fifth"), no one can be deprived of life,liberty or property without "due process of law"; no taking of property for public use (eminent domain) without justcompensation. These rights have become applicable to states through the 14th Amendment as well as stateconstitutions. Sixth: Rights of criminal defendants to a speedy and public trial, impartial local jury, information onthe nature and cause of accusation, confront witnesses against him, right to subpena witnesses, and havecounsel. Seventh: Juries may be demanded in civil cases (over $20) and the jury shall be trier of the fact in suchcases as required by Common Law. Eighth: No excessive bail, excessive fines or "cruel and unusualpunishment." Note that denial of bail in murder cases or when the accused may flee is not "excessive," andcapital punishment (like the gas chamber) may be cruel but not necessarily unusual. inth: Stating these rightsshall not be construed to deny that other rights are retained by the people. Tenth: Powers given to the UnitedStates (central government) and not prohibited to the states, are reserved to the states or to the people.

clear and present dangern. the doctrine established in an opinion written by Oliver Wendell Holmes, Jr. in Schenk vs. United States (1919)which is used to determine if a situation creates a threat to the public, individual citizens or to the nation.

due process of lawn. a fundamental principle of fairness in all legal matters, both civil and criminal, especially in the courts. All legalprocedures set by statute and court practice, including notice of rights, must be followed for each individual sothat no prejudicial or unequal treatment will result. While somewhat indefinite, the term can be gauged by its aimto safeguard both private and public rights against unfairness. The universal guarantee of due process is in theFifth Amendment to the U.S. Constitution, which provides "No person shallbe deprived of life, libe rty, orproperty, without due process of law," and is applied to all states by the 14th Amendment. From this basicprinciple flows many legal decisions determining both procedural and substantive rights.

impeachmentn. 1) discrediting a witness by showing that he/she is not telling the truth or does not have the knowledge to testifyas he/she did. 2) the trying of a public official for charges of illegal acts committed in the performance of publicduty. It is not the conviction for the alleged crime nor the removal from office. It is only the trial itself.


2/24

interstate commercen. commercial trade, business, movement of goods or money, or transportation from one state to another,regulated by the federal government according to powers spelled out in Article I of the Constitution.

privacyn. the right to be free of unnecessary public scrutiny or to be let alone. Once a person is a "public figure" orinvolved in newsworthy events, the right to privacy may evaporate.

public domainn. 1) in copyright law, the right of anyone to use literature, music or other previously copyrighted materials afterthe copyright period has expired. Although the copyright laws have been changed several times, a rule of thumbwould be that the last possible date for copyright protection would be 50 years after the death of the author. Thus,the works of William Shakespeare, Mark Twain, Jack London and other classic writers are in the public domainand may be published by anyone without payment of a royalty. 2) all lands and waters owned by federal, stateand local governments.

public utilityn. any organization which provides services to the general public, although it may be privately owned. Publicutilities include electric, gas, telephone, water and television cable systems, as well as streetcar and bus lines.They are allowed certain monopoly rights due to the practical need to service entire geographic areas with onesystem, but they are regulated by state, county and/or city public utility commissions under state laws.

supremacy clausen. Article VI, section 2 of the U.S. Constitution, which reads: "This Constitution, and the Laws of the United Stateswhich shall be made in pursuance thereof; and all treaties made, or which shall be made, under the authority ofthe United States, shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any state to the contrary notwithstanding." Thus a Supreme Court ruling can bebinding on state courts if involving a constitutional issue.

unconstitutional

adj. referring to a statute, governmental conduct, court decision or private contract (such as a covenant whichpurports to limit transfer of real property only to Caucasians) which violate one or more provisions of the U.S.Constitution. The ultimate determination of constitutionality is the U.S. Supreme Court. Unconstitutional can alsorefer to violations of a state constitution.

zoningn. a system of developing a city or county plan in which various geographic areas (zones) are restricted to certainuses and development, such as industrial, light industrial, commercial, light-commercial, agricultural, single-familyresidential, multi-unit residential, parks, schools and other purposes. Zoning is the chief planning tool of localgovernment to guide the future development of a community, protect neighborhoods, concentrate retail businessand industry, channel traffic and play a major role in the enhancement of urban as well as small -town life. In 1926,zoning was declared constitutional by the U.S. Supreme Court in Village of Euclid v. Ambler Realty Co.

1.3. CONTRACTS, TORTS, FAMILY LAW, CIVIL PROCEDURE:

acceptv. to receive something with approval and intention to keep it. This use often arises on the question of accepting apayment which is late or not complete or accepting the "service" (delivery) of legal papers.

act of Godn. a natural catastrophe which no one can prevent such as an earthquake, a tidal wave, a volcanic eruption, ahurricane or a tornado. Acts of God are significant for two reasons 1) for the havoc and damage they wreak, and


3/24

2) because often contracts state that "acts of God" are an excuse for delay or failure to fulfill a commitment or tocomplete a construction project.

assignmentn. the act of transferring an interest in property or some right (such as contract benefits) to another. It is usedcommonly by lawyers, accountants, business people, title companies and others dealing with property.

bad debtn. an uncollectible debt. The problem is to determine when a debt is realistically dead, which means there mustbe some evidence of uncollectibility or a lengthy passage of time.

bailmentn. 1) the act of placing property in the custody and control of another, usually by agreement in which the holder(bailee) is responsible for the safekeeping and return of the property.

beneficiaryn. a broad definition for any person or entity (like a charity) who is to receive assets or profits from an estate, atrust, an insurance policy or any instrument in which there is distribution. There is also an "incidental beneficiary"or a "third party beneficiary" who gets a benefit although not specifically named, such as someone who will make

a profit if a piece of property is distributed to another.

bill of ladingn. a receipt obtained by the shipper of goods from the carrier (trucking company, railroad, ship or air freighter) forshipment to a particular buyer. It is a contract protecting the shipper by guaranteeing payment and satisfies thecarrier that the recipient has proof of the right to the goods. The bill of lading is then sent to the buyer by theshipper upon payment for the goods, and is thus proof that the recipient is entitled to the goods when received.Thus, if there is no bill of lading, there is no delivery.

bona fideadj. Latin for "good faith," it signifies honesty, the "real thing" and, in the case of a party claiming title as bona fidepurchaser or holder, it indicates innocence or lack of knowledge of any fact that would cast doubt on the right tohold title.

breach of contractn. failing to perform any term of a contract, written or oral, without a legitimate legal excuse. This may include notcompleting a job, not paying in full or on time, failure to deliver all the goods, substituting inferior or significantlydifferent goods, not providing a bond when required, being late without excuse, or any act which shows the partywill not complete the work ("anticipatory breach"). Breach of contract is one of the most common causes of lawsuits for damages and/or court-ordered "specific performance" of the contract.

burden of proofn. the requirement that the plaintiff (the party bringing a civil lawsuit) show by a "preponderance of evidence" or"weight of evidence" that all the facts necessary to win a judgment are presented and are probably true. In acriminal trial the burden of proof required of the prosecutor is to prove the guilt of the accused "beyond areasonable doubt," a much more difficult task. Unless there is a complete failure to present substantial evidenceof a vital fact (usually called an "element of the cause of action"), the ultimate decision as to whether the plaintiffhas met his/her burden of proof rests with the jury or the judge if there is no jury.

C.I.F.n. the total of cost, insurance and freight charges to be paid on goods purchased and shipped

cancelv. to cross out, annul, destroy, void and/or rescind a document. Cancelling can be done in several ways: tear upthe document or mark on its face that i t is cancelled, void, or terminated if the debt for which it stood has beenpaid. It is important that the document (like a promissory note) itself become no longer operative either bydestruction or marking, so that it cannot be used again.

cause of action

n. the basis of a lawsuit founded on legal grounds and alleged facts which, if proved, would constitute all the"elements" required by statute. Examples: to have a cause of action for breach of contract there must have been


4/24

an offer of acceptance; for a tort (civil wrong) there must have been negligence or intentional wrongdoing andfailure to perform; for libel there must have been an untruth published which is particularly harmful; and in allcases there must be a connection between the acts of the defendant and damages. In many lawsuits there areseveral causes of action stated separately, such as fraud, breach of contract, and debt, or negligence andintentional destruction of property.

caveat emptor(kah-vee-ott emptor) Latin for "let the buyer beware." The basic premise that the buyer buys at his/her own riskand therefore should examine and test a product himself/herself for obvious defects and imperfections. Caveatemptor still applies even if the purchase is "as is" or when a defect is obvious upon reasonable inspection beforepurchase. Since implied warranties (assumed quality of goods) and consumer protections have come upon thelegal landscape, the seller is held to a higher standard of disclosure than "buyer beware" and has responsibilityfor defects which could not be noted by casual inspection (particularly since modern devices cannot be testedexcept by use and many products are pre-packaged).See also:consum er protect ion laws

claim1) v. to make a demand for money, for property, or for enforcement of a right provided by law. 2) n. the making ofa demand (asserting a claim) for money due, for property, from damages or for enforcement of a right. If such a

demand is not honored, it may result in a lawsuit. In order to enforce a right against a government agency(ranging for damages from a negligent bus driver to a shortage in payroll) a claim must be filed first. If rejected orignored by the government, it is lawsuit time.

class actionn. a lawsuit filed by one or more people on behalf of themselves and a larger group of people "who are similarlysituated." Examples might include: all women who have suffered from defective contraceptive devices or breastimplants, all those overcharged by a public utility during a particular period, or all those who were underpaid by anemployer in violation of the Fair Labor Standards Act. If a class action is successful, a period of time is given forthose who can prove they fit the class to file claims to participate in the judgment amount. Class actions aredifficult and expensive to file and follow through, but the results can be helpful to people who could not afford tocarry a suit alone.

compensatory damagesn. damages recovered in payment for actual injury or economic loss, which does not include punitive damages(as added damages due to malicious or grossly negligent action).See also:damagesgeneral damagespuni t ive damagesspecial damages

compromise1) n. an agreement between opposing parties to settle a dispute or reach a settlement in which each gives someground, rather than continue the dispute or go to trial. Judges encourage compromise and settlement, which isoften economically sensible, since it avoids mounting attorneys' fees and costs. 2) v. to reach a settlement inwhich each party gives up some demands.See also:sett lement

conditionn. a term or requirement stated in a contract, which must be met for the other party to have the duty to fulfillhis/her obligations.See also:condi t ion precedentcondi t ion subsequent

considerationa vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties,and is the essential reason for a party entering into a contract. Consideration must be of value (at least to theparties), and is exchanged for the performance or promise of performance by the other party (such performanceitself is consideration). In a contract, one consideration (thing given) is exchanged for anotherconsideration.Contracts may become unenforceable or rescindable (undone by rescission) for "failure ofconsideration" when the intended consideration is found to be worth less than expected, is damaged ordestroyed, or performance is not made properly (as when the mechanic does not make the car run properly).

contract1) n. an agreement with specific terms between two or more persons or entities in which there is a promise to do
http://dictionary.law.com/default2.asp?selected=323&bold=||||http://dictionary.law.com/default2.asp?selected=323&bold=||||http://dictionary.law.com/default2.asp?selected=323&bold=||||http://dictionary.law.com/default2.asp?selected=423&bold=||||http://dictionary.law.com/default2.asp?selected=423&bold=||||http://dictionary.law.com/default2.asp?selected=809&bold=||||http://dictionary.law.com/default2.asp?selected=809&bold=||||http://dictionary.law.com/default2.asp?selected=1690&bold=||||http://dictionary.law.com/default2.asp?selected=1690&bold=||||http://dictionary.law.com/default2.asp?selected=1985&bold=||||http://dictionary.law.com/default2.asp?selected=1985&bold=||||http://dictionary.law.com/default2.asp?selected=1985&bold=||||http://dictionary.law.com/default2.asp?selected=1938&bold=||||http://dictionary.law.com/default2.asp?selected=1938&bold=||||http://dictionary.law.com/default2.asp?selected=1938&bold=||||http://dictionary.law.com/default2.asp?selected=280&bold=||||http://dictionary.law.com/default2.asp?selected=280&bold=||||http://dictionary.law.com/default2.asp?selected=281&bold=||||http://dictionary.law.com/default2.asp?selected=281&bold=||||http://dictionary.law.com/default2.asp?selected=281&bold=||||http://dictionary.law.com/default2.asp?selected=281&bold=||||http://dictionary.law.com/default2.asp?selected=280&bold=||||http://dictionary.law.com/default2.asp?selected=1938&bold=||||http://dictionary.law.com/default2.asp?selected=1985&bold=||||http://dictionary.law.com/default2.asp?selected=1690&bold=||||http://dictionary.law.com/default2.asp?selected=809&bold=||||http://dictionary.law.com/default2.asp?selected=423&bold=||||http://dictionary.law.com/default2.asp?selected=323&bold=||||


5/24

something in return for a valuable benefit known as consideration. Since the law of contracts is at the heart ofmost business dealings, it is one of the three or four most significant areas of legal concern and can involvevariations on circumstances and complexities.

conveyancen. a generic term for any written document which transfers (conveys) real property or real property interests fromone party to another. A conveyance must be acknowledged before a notary (or if a court judgment be certified asthe same as the document on file) and recorded with the County Recorder or Recorder of Deeds.

counter offern. an offer made in response to a previous offer by the other party during negotiations for a final contract. Makinga counter offer automatically rejects the prior offer, and requires an acceptance under the terms of the counteroffer or there is no contract. Example: Susan Seller offers to sell her house for $150,000, to be paid in 60 days;Bruce Buyer receives the offer and gives Seller a counter offer of $140,000, payable in 45 days. The original offeris dead, despite the shorter time for payment since the price is lower. Seller then can choose to accept at$140,000, counter again at some compromise price, reject the counter offer, or let it expire.

creditorn. a person or entity to whom a debt is owed.

damagesn. the amount of money which a plaintiff (the person suing) may be awarded in a lawsuit. There are many types ofdamages. Special damages are those which actually were caused by the injury and include medical and hospitalbills, ambulance charges, loss of wages, property repair or replacement costs or loss of money due on a contract.The second basic area of damages are general damages, which are presumed to be a result of the other party'sactions, but are subjective both in nature and determination of value of damages. These include pain andsuffering, future problems and crippling effect of an injury, loss of ability to perform various acts, shortening of lifespan, mental anguish, loss of companionship, loss of reputation (in a libel suit, for example), humiliation fromscars, loss of anticipated business and other harm. The third major form of damage is exemplary (or punitive)damages, which combines punishment and the setting of public example.

debtn. 1) a sum of money due to another. 2) obligation to deliver particular goods or perform certain acts according to

an agreement, such as returning a favor. 3) a cause of action in a lawsuit for a particular amount owed.

declaratory judgmentn. a judgment of a court which determines the rights of parties without ordering anything be done or awardingdamages. While this borders on the prohibited "advisory opinion," it is allowed to nip controversies in the bud.Examples: a party to a contract may seek the legal interpretation of a contract to determine the parties' rights, or acorporation may ask a court to decide whether a new tax is truly applicable to that business before it pays it.

degree of kinshipn. the level of relationship between two persons related by blood, such as parent to child, one sibling to another,grandparent to grandchild or uncle to nephew, first cousins, etc., calculated as one degree for each step from acommon ancestor. This may become important when determining the heirs of an estate when there is no will. See also:descent

deed1) n. the written document which transfers title (ownership) or an interest in real property to another person. Thedeed must describe the real property, name the party transferring the property (grantor), the party receiving theproperty (grantee) and be signed by the grantor, who must then acknowledge before a notary public that he/she/itexecuted the deed. To complete the transfer (conveyance) the deed must be recorded in the office of the CountyRecorder or Recorder of Deeds.

default1) n. failure to respond to a summons and complaint served on a party in the time required by law. If a legalanswer or other response is not filed, the suing party (plaintiff) can request a default be entered in the record,which terminates the rights of the defaulting party to defend the case. Under a unique New York statute a defaultcan be taken by failure to respond to a summons served without a complaint. 2) the failure to make a paymentwhen due, which can lead to a notice of default and the start of foreclosure proceedings if the debt is secured by a

mortgage or deed of trust. 3) v. to fail to file an answer or other response to a summons and complaint, or fail tomake a payment when due.
http://dictionary.law.com/default2.asp?selected=502&bold=||||http://dictionary.law.com/default2.asp?selected=502&bold=||||http://dictionary.law.com/default2.asp?selected=502&bold=||||http://dictionary.law.com/default2.asp?selected=502&bold=||||


6/24

disclaimern. 1) denial or renunciation by someone of his/her title to property. 2) denial of responsibility for another's claim,such as an insurance company's refusal to admit coverage under an insurance policy. 3) statement of non-responsibility, as is made when dissolving a partnership or business.

good faithn. honest intent to act without taking an unfair advantage over another person or to fulfill a promise to act, evenwhen some legal technicality is not fulfilled. The term is applied to all kinds of transactions.

goodwilln. the benefit of a business having a good reputation under its name and regular patronage. Goodwill is nottangible like equipment, right to lease the premises or inventory of goods. It becomes important when a businessis sold, since there can be an allocation in the sales price for the value of the goodwill, which is always asubjective estimate.

gross negligencen. carelessness which is in reckless disregard for the safety or lives of others, and is so great it appears to be aconscious violation of other people's rights to safety. It is more than simple inadvertence, but it is just shy of beingintentionally evil. If one has borrowed or contracted to take care of another's property, then gross negligence is

the failure to actively take the care one would of his/her own property.

heirn. one who acquires property upon the death of another, based on the rules of descent and distribution, namely,being the child, descendant or other closest relative of the dear departed. It also has come to mean anyone who"takes" (receives something) by the terms of the will.

implied contractn. an agreement which is found to exist based on the circumstances when to deny a contract would be unfairand/or result in unjust enrichment to one of the parties. An implied contract is distinguished from an "expresscontract."See also:contractexpress contractimpl ied

implied warrantyn. an assumption at law that products are "merchantable," meaning they work and are useable as normallyexpected by consumers, unless there is a warning that they are sold "as is" or second-hand without any warranty.

A grant deed of real property carries the implied warranty of good title, meaning the grantor (seller) had a title(ownership) to transfer.See also:caveat empto rimpl ied

incapacityadj. 1) not being able to perform any gainful employment due to congenital disability, illness (including mental),physical injury, advanced age or intellectual deficiency. This is significant in claims for worker's compensation,disability insurance, or Social Security claims under "SSI." 2) lacking the ability to understand one's actions inmaking a will, executing some other document or entering into an agreement. A challenge to the validity of a willoften turns on a claim that the person (now dead and unable to testify) lacked the capacity to understand what

he/she owned, who were the "natural objects of his/her bounty" (close relatives primarily), that no one was able todominate the testator's (will writer's) judgment so as to exert "undue influence."

irreparable damage or injuryn. the type of harm which no monetary compensation can cure or put conditions back the way they were, such ascutting down shade trees, polluting a stream, not giving a child needed medication, not supporting an excavationwhich may cause collapse of a building, tearing down a structure, or a host of other actions or omissions. Thephrase must be used to claim that a judge should order an injunction, writ, temporary restraining order or other

judicial assistance, generally known as equitable relief.

joint liabilityn. when two or more persons are both responsible for a debt, claim or judgment. It can be important to the personmaking the claim, as well as to a person who is sued, who can demand that anyone with joint liability for thealleged debt or claim for damages be joined in (brought into) the lawsuit. See also:jo inderjo in t an d sever al
http://dictionary.law.com/default2.asp?selected=337&bold=||||http://dictionary.law.com/default2.asp?selected=337&bold=||||http://dictionary.law.com/default2.asp?selected=703&bold=||||http://dictionary.law.com/default2.asp?selected=703&bold=||||http://dictionary.law.com/default2.asp?selected=903&bold=||||http://dictionary.law.com/default2.asp?selected=903&bold=||||http://dictionary.law.com/default2.asp?selected=903&bold=||||http://dictionary.law.com/default2.asp?selected=158&bold=||||http://dictionary.law.com/default2.asp?selected=158&bold=||||http://dictionary.law.com/default2.asp?selected=903&bold=||||http://dictionary.law.com/default2.asp?selected=903&bold=||||http://dictionary.law.com/default2.asp?selected=903&bold=||||http://dictionary.law.com/default2.asp?selected=1040&bold=||||http://dictionary.law.com/default2.asp?selected=1040&bold=||||http://dictionary.law.com/default2.asp?selected=1044&bold=||||http://dictionary.law.com/default2.asp?selected=1044&bold=||||http://dictionary.law.com/default2.asp?selected=1044&bold=||||http://dictionary.law.com/default2.asp?selected=1044&bold=||||http://dictionary.law.com/default2.asp?selected=1040&bold=||||http://dictionary.law.com/default2.asp?selected=903&bold=||||http://dictionary.law.com/default2.asp?selected=158&bold=||||http://dictionary.law.com/default2.asp?selected=903&bold=||||http://dictionary.law.com/default2.asp?selected=703&bold=||||http://dictionary.law.com/default2.asp?selected=337&bold=||||


7/24

kinn. blood relative.

landlord and tenantn. the name for the area of law concerning renting and leasing property and the rights of both the owner and the

renter or lessee.

latent defectn. a hidden flaw, weakness or imperfection in an article which a seller knows about, but the buyer cannot discoverby reasonable inspection. It includes a hidden defect in the title to land, such as an incorrect property description.Generally, this entitles the purchaser to get his/her money back (rescind the deal) or get a replacement without adefect on the basis of "implied" warranty of quality that a buyer could expect ("merchantability"). Even an "as is"purchase could be rescinded if it could be shown the seller knew of the flaw. See also:impl ied w arrantyproduct l iabi li tywarranty

lawsuitn. a common term for a legal action by one person or entity against another person or entity, to be decided in acourt of law, sometimes just called a "suit." The legal claims within a lawsuit are called "causes of action." See also:casecause of act ionsui t

lease1) n. a written agreement in which the owner of property (either real estate or some object like an automobile)allows use of the property for a specified period of time (term) for specific periodic payments (rent), and otherterms and conditions. Leases of real property describe the premises (often by address); penalties for latepayments, termination upon default of payment or breach of any significant conditions; increases in rent based oncost of living or some other standard; inclusion or exclusion of property taxes and insurance in rent; limitations onuse (for a butcher shop, a residence for the family only, no pets); charges for staying on beyond the term (holdingover); any right to renew the lease for another period; and/or a requirement for payment of attorneys' fees andcosts in case of the need to enforce the lease (including eviction). A lease is distinguished from a mere renting ofthe premises on a month-to-month basis and cannot exceed a year unless agreed to in writing.

lesseen. the person renting property under a written lease from the owner (lessor). He/she/it is the tenant and the lessoris the landlord.

letter of creditn. a document issued by a bank guaranteeing to provide a customer a line of credit (automatic loan up to a certainamount) for money or security for a loan. Such a letter is used primarily to facilitate long-distance businesstransactions.

liabilityn. one of the most significant words in the field of law, liability means legal responsibility for one's acts oromissions. Failure of a person or entity to meet that responsibility leaves him/her/it open to a lawsuit for anyresulting damages or a court order to perform (as in a breach of contract or violation of statute). In order to win alawsuit the suing party (plaintiff) must prove the legal liability of the defendant if the plaintiff's allegations areshown to be true. This requires evidence of the duty to act, the failure to fulfill that duty and the connection(proximate cause) of that failure to some injury or harm to the plaintiff.

litigationn. any lawsuit or other resort to the courts to determine a legal question or matter.

maturityn. 1) the date when the payment of the principal amount owed under the terms of a promissory note or bill ofexchange becomes due. Quite often a note states that failure to pay interest or installment payments when due"accelerates" the note, making the "maturity date" immediate if such payments are demanded and not paid. 2) theage when one becomes an adult, which is 18 for most purposes. See also:accelerationbi l l of exchangelegal agepromissory note

meeting of the mindsn. when two parties to an agreement (contract) both have the same understanding of the terms of the agreement.
http://dictionary.law.com/default2.asp?selected=907&bold=||||http://dictionary.law.com/default2.asp?selected=907&bold=||||http://dictionary.law.com/default2.asp?selected=1630&bold=||||http://dictionary.law.com/default2.asp?selected=1630&bold=||||http://dictionary.law.com/default2.asp?selected=2237&bold=||||http://dictionary.law.com/default2.asp?selected=2237&bold=||||http://dictionary.law.com/default2.asp?selected=2237&bold=||||http://dictionary.law.com/default2.asp?selected=147&bold=||||http://dictionary.law.com/default2.asp?selected=147&bold=||||http://dictionary.law.com/default2.asp?selected=156&bold=||||http://dictionary.law.com/default2.asp?selected=156&bold=||||http://dictionary.law.com/default2.asp?selected=2059&bold=||||http://dictionary.law.com/default2.asp?selected=2059&bold=||||http://dictionary.law.com/default2.asp?selected=2059&bold=||||http://dictionary.law.com/default2.asp?selected=2294&bold=||||http://dictionary.law.com/default2.asp?selected=2294&bold=||||http://dictionary.law.com/default2.asp?selected=69&bold=||||http://dictionary.law.com/default2.asp?selected=69&bold=||||http://dictionary.law.com/default2.asp?selected=1128&bold=||||http://dictionary.law.com/default2.asp?selected=1128&bold=||||http://dictionary.law.com/default2.asp?selected=1639&bold=||||http://dictionary.law.com/default2.asp?selected=1639&bold=||||http://dictionary.law.com/default2.asp?selected=1639&bold=||||http://dictionary.law.com/default2.asp?selected=1639&bold=||||http://dictionary.law.com/default2.asp?selected=1128&bold=||||http://dictionary.law.com/default2.asp?selected=69&bold=||||http://dictionary.law.com/default2.asp?selected=2294&bold=||||http://dictionary.law.com/default2.asp?selected=2059&bold=||||http://dictionary.law.com/default2.asp?selected=156&bold=||||http://dictionary.law.com/default2.asp?selected=147&bold=||||http://dictionary.law.com/default2.asp?selected=2237&bold=||||http://dictionary.law.com/default2.asp?selected=1630&bold=||||http://dictionary.law.com/default2.asp?selected=907&bold=||||


8/24

Such mutual comprehension is essential to a valid contract. It is provable by the express provisions of a writtencontract, without reference to any statements or hidden thoughts outside the writing. There would not be ameeting of the minds if Bill Buyer said, "I'll buy all your stock," and he meant shares in a corporation, and SamSeller said, "I'll sell all my stock to you," and meant his cattle.

mistaken. 1) an error in comprehending facts, meaning of words or the law, which causes one party or both parties toenter into a contract without understanding the obligations or results. Such a mistake can entitle one party or bothparties to a rescission (cancellation) of the contract. A mistaken understanding of the law (as distinguished fromfacts) by one party only is usually no basis for rescission since "ignorance of the law is no excuse."

mutualadj., adv. referring to anything in which both parties have reciprocal rights, understanding or agreement.

natural personn. a real human being, as distinguished from a corporation, which is often treated at law as a fictitious person.

negligencen. failure to exercise the care toward others which a reasonable or prudent person would do in the circumstances,or taking action which such a reasonable person would not. Negligence is accidental as distinguished from"intentional torts" (assault or trespass, for example) or from crimes, but a crime can also constitute negligence,such as reckless driving.

notary publicn. a person authorized by the state in which the person resides to administer oaths (swearings to truth of astatement), take acknowledgments, certify documents and to take depositions if the notary is also a courtreporter.

novationn. agreement of parties to a contract to substitute a new contract for the old one. It extinguishes (cancels) the oldagreement. A novation is often used when the parties find that payments or performance cannot be made underthe terms of the original agreement, or the debtor will be forced to default or go into bankruptcy unless the debt is

restructured. While voluntary, a novation is often the only way any funds can be paid.

obligee(ah-bluh-jee) n. the person or entity to whom an obligation is owed, like the one to be paid on a promissory note.

obligor(ah-bluh-gore) n. the person or entity who owes an obligation to another, as one who must pay on a promissorynote.

officious intermeddlern. a volunteer who assists and/or benefits another without contractual responsibility or legal duty to do so, butnevertheless wants compensation for his/her actions.

oral contractn. an agreement made with spoken words and either no writing or only partially written. An oral contract is just asvalid as a written agreement.

partyn. 1) one of the participants in a lawsuit or other legal proceeding who has an interest in the outcome. Partiesinclude plaintiff (person filing suit), defendant (person sued or charged with a crime), petitioner (files a petitionasking for a court ruling), respondent (usually in opposition to a petition or an appeal), cross-complainant (adefendant who sues someone else in the same lawsuit), or cross-defendant (a person sued by a cross-complainant).

plaintiffn. the party who initiates a lawsuit by filing a complaint with the clerk of the court against the defendant(s)demanding damages, performance and/or court determination of rights.


9/24

power of attorneyn. a written document signed by a person giving another person the power to act in conducting the signer'sbusiness, including signing papers, checks, title documents, contracts, handling bank accounts and otheractivities in the name of the person granting the power.

preemptive rightn. the right of a shareholder in a corporation to have the first opportunity to purchase a new issue of stock of thatcorporation in proportion to the amount of stock already owned by the shareholder.

product liabilityn. the responsibility of manufacturers, distributors and sellers of products to the public, to deliver products free ofdefects which harm an individual or numerous persons and to make good on that responsibility if their productsare defective. These can include faulty auto brakes, contaminated baby food, exploding bottles of beer,flammable children's pajamas or lack of label warnings.

quasi contractn. a situation in which there is an obligation as if there was a contract, although the technical requirements of acontract have not been fulfilled.

recoupmentn. the right of a defendant in a lawsuit to demand deduction from the amount awarded to plaintiff (party bringingthe suit) of a sum due the defendant from the plaintiff in the transaction which was the subject of the lawsuit.

redeemv. to buy back, as when an owner who had mortgaged his/her real property pays off the debt.

remedyn. the means to achieve justice in any matter in which legal rights are involved. Remedies may be ordered by thecourt, granted by judgment after trial or hearing, by agreement (settlement) between the person claiming harmand the person he/she believes has caused it, and by the automatic operation of law.

renewaln. keeping an existing arrangement in force for an additional period of time, such as a lease, a promissory note,insurance policy or any other contract. Renewal usually requires a writing or some action which evidences thenew term.

rescissionn. the cancellation of a contract by mutual agreement of the parties. See also:rescind

secured transactionn. any loan or credit in which property is pledged as security in the event payment is not made.

setoff(offset) n. a claim by a defendant in a lawsuit that the plaintiff (party filing the original suit) owes the defendantmoney which should be subtracted from the amount of damages claimed by plaintiff. By claiming a setoff thedefendant does not necessarily deny the plaintiff's original demand, but he/she claims the right to prove theplaintiff owes him/her an amount of money from some other transaction and that the amount should be deductedfrom the plaintiff's claim.

settlementn. the resolution of a lawsuit (or of a legal dispute prior to filing a complaint or petition) without going forward to afinal court judgment. Most settlements are achieved by negotiation in which the attorneys (and sometimes aninsurance adjuster with authority to pay a settlement amount on behalf of the company's insured defendant) andthe parties agree to terms of settlement.

standard of caren. the watchfulness, attention, caution and prudence that a reasonable person in the circumstances would

exercise. If a person's actions do not meet this standard of care, then his/her acts fail to meet the duty of carewhich all people (supposedly) have toward others.


10/24

statute of limitationsn. a law which sets the maximum period which one can wait before filing a lawsuit, depending on the type of caseor claim. The periods vary by state. Federal statutes set the limitations for suits filed in federal courts.

subcontractorn. a person or business which has a contract (as an "independent contractor" and not an employee) with a

contractor to provide some portion of the work or services on a project which the contractor has agreed toperform. In building construction, subcontractors may include such trades as plumbing, electrical, roofing, cementwork and plastering. If a subcontractor is not paid for his/her work, he/she has the right to enforce a "mechanic'slien" on the real property upon which the work was done to collect.

tenantn. a person who occupies real property owned by another based upon an agreement between the person and thelandlord/owner, almost always for rental payments.See also:tenancy

tortn. from French for "wrong," a civil wrong or wrongful act, whether intentional or accidental, from which injuryoccurs to another. Torts include all negligence cases as well as intentional wrongs which result in harm. Therefore

tort law is one of the major areas of law (along with contract, real property and criminal law) and results in morecivil litigation than any other category.

unjust enrichmentn. a benefit by chance, mistake or another's misfortune for which the one enriched has not paid or worked andmorally and ethically should not keep. If the money or property received rightly should have been delivered orbelonged to another, then the party enriched must make restitution to the rightful owner. Usually a court will ordersuch restitution if a lawsuit is brought by the party who should have the money or property.

vendorn. a seller, particularly of real property.

vestedadj. referring to having an absolute right or title, when previously the holder of the right or title only had anexpectation. Example: after 20 years of employment Larry Loyal's pension rights are now vested.

voidadj. referring to a statute, contract, ruling or anything which is null and of no effect. A law or judgment found by anappeals court to be unconstitutional is void, a rescinded (mutually cancelled) contract is void, and a marriagewhich has been annulled by court judgment is void.See also:voidable

vicarious liabilityn. sometimes called "imputed liability," attachment of responsibility to a person for harm or damages caused byanother person in either a negligence lawsuit or criminal prosecution. Thus, an employer of an employee whoinjures someone through negligence while in the scope of employment (doing work for the employer) is

vicariously liable for damages to the injured person. In most states a participant in a crime (like a hold-up) may bevicariously liable for murder if another member of the group shoots and kills a shopkeeper or policeman.

waivev. to voluntarily give up something, including not enforcing a term of a contract (such as insisting on payment onan exact date), or knowingly giving up a legal right such as a speedy trial, a jury trial or a hearing on extradition(the transfer to another state's jurisdiction of one accused of a crime in the other state). See also:waiver

warrantyn. a written statement of good quality of merchandise, clear title to real estate or that a fact stated in a contract istrue. An "express warranty" is a definite written statement and "implied warranty" is based on the circumstancessurrounding the sale or the creation of the contract.See also:warrant
http://dictionary.law.com/default2.asp?selected=2099&bold=||||http://dictionary.law.com/default2.asp?selected=2099&bold=||||http://dictionary.law.com/default2.asp?selected=2099&bold=||||http://dictionary.law.com/default2.asp?selected=2227&bold=||||http://dictionary.law.com/default2.asp?selected=2227&bold=||||http://dictionary.law.com/default2.asp?selected=2227&bold=||||http://dictionary.law.com/default2.asp?selected=2233&bold=||||http://dictionary.law.com/default2.asp?selected=2233&bold=||||http://dictionary.law.com/default2.asp?selected=2233&bold=||||http://dictionary.law.com/default2.asp?selected=2236&bold=||||http://dictionary.law.com/default2.asp?selected=2236&bold=||||http://dictionary.law.com/default2.asp?selected=2236&bold=||||http://dictionary.law.com/default2.asp?selected=2236&bold=||||http://dictionary.law.com/default2.asp?selected=2233&bold=||||http://dictionary.law.com/default2.asp?selected=2227&bold=||||http://dictionary.law.com/default2.asp?selected=2099&bold=||||


11/24

wrongful terminationn. a right of an employee to sue his/her employer for damages (loss of wage and "fringe" benefits, and, if against"public policy," for punitive damages).

1.4. PROPERTY LAW:

abandoned propertyn. property left behind (often by a tenant) intentionally and permanently when it appears that the former owner (ortenant) does not intend to come back, pick it up, or use it. Examples may include possessions left in a house afterthe tenant has moved out or autos left beside a road for a long period of time, or patent rights of an inventor whodoes not apply for a patent and lets others use his invention without protest. One may have abandoned theproperty of contract rights by not doing what is required by the contract. However, an easement and other landrights are not abandoned property just because of non-use.See also:abandonabandonment

adverse possessionn. a means to acquire title to land through obvious occupancy of the land, while claiming ownership for the periodof years set by the law of the state where the property exists. This can arise when a rancher fences in a parcelcontending he was to get title from some prior owner, and then grazes cattle on the property for many yearswithout objection by the title holder.

appraisev. to professionally evaluate the value of property including real estate, jewelry, antique furniture, securities, or incertain cases the loss of value (or cost of replacement) due to damage. This may be necessary in determining thevalue of the estate of someone who has died, particularly when the items must be divided among thebeneficiaries, to determine the value of assets for insurance coverage, to divide partnership assets, set a salesprice, determine taxes, or make insurance claims.

chatteln. an item of personal property which is movable, as distin-guished from real property (land and improvements). See also:personal proper ty

clear titlen. holding ownership of real property without any claims by others on the owner's title and no history of pastclaims which might affect the ownership.

collateral1) n. property pledged to secure a loan or debt, usually funds or personal property as distinguished from realproperty (but technically collateral can include real estate).

common propertyn. 1) real property owned by "tenants in common," who each have an "undivided interest" in the entire property. 2)property managed by a homeowners' association in a condominium project or a subdivision development, which

all owners may use and each owns a percentage interest in. 3) lands owned by the government for public(common) use, like parks and national forests.

conveyancen. a generic term for any written document which transfers (conveys) real property or real property interests fromone party to another. A conveyance must be acknowledged before a notary (or if a court judgment be certified asthe same as the document on file) and recorded with the County Recorder or Recorder of Deeds.

easementn. the right to use the real property of another for a specific purpose. The easement is itself a real propertyinterest, but legal title to the underlying land is retained by the original owner for all other purposes. Typicaleasements are for access to another property (often redundantly stated "access and egress," since entry and exitare over the same path), for utility or sewer lines both under and above ground, use of spring water, entry to make

repairs on a fence or slide area, drive cattle across and other uses.
http://dictionary.law.com/default2.asp?selected=2273&bold=||||http://dictionary.law.com/default2.asp?selected=2273&bold=||||http://dictionary.law.com/default2.asp?selected=2275&bold=||||http://dictionary.law.com/default2.asp?selected=2275&bold=||||http://dictionary.law.com/default2.asp?selected=2275&bold=||||http://dictionary.law.com/default2.asp?selected=1518&bold=||||http://dictionary.law.com/default2.asp?selected=1518&bold=||||http://dictionary.law.com/default2.asp?selected=1518&bold=||||http://dictionary.law.com/default2.asp?selected=1518&bold=||||http://dictionary.law.com/default2.asp?selected=2275&bold=||||http://dictionary.law.com/default2.asp?selected=2273&bold=||||


12/24

eminent domainn. the power of a governmental entity (federal, state, county or city government, school district, hospital district orother agencies) to take private real estate for public use, with or without the permission of the owner. The Fifth

Amendment to the Constitution provides that "private property [may not] be taken for public use without justcompensation." The Fourteenth Amendment added the requirement of just compensation to state and localgovernment takings.

encumbrance(incumbrance)n. a general term for any claim or lien on a parcel of real property. These include: mortgages,deeds of trust, recorded abstracts of judgment, unpaid real property taxes, tax liens, mechanic's liens, easementsand water or timber rights. While the owner has title, any encumbrance is usually on record (with the CountyRecorder or Recorder of Deeds) and must be paid for at some point.

free and clearadj. referring to the ownership of real property upon which there is no lien, encumbrance, recorded judgment orthe right of anyone to make a claim against the property. The term is used in contracts for sale of real propertyand deeds, to state that the title has no claim against it.

landlord and tenantn. the name for the area of law concerning renting and leasing property and the rights of both the owner and therenter or lessee.

lease1) n. a written agreement in which the owner of property (either real estate or some object like an automobile)allows use of the property for a specified period of time (term) for specific periodic payments (rent), and otherterms and conditions. Leases of real property describe the premises (often by address); penalties for latepayments, termination upon default of payment or breach of any significant conditions; increases in rent based oncost of living or some other standard; inclusion or exclusion of property taxes and insurance in rent; limitations onuse (for a butcher shop, a residence for the family only, no pets); charges for staying on beyond the term (holdingover); any right to renew the lease for another period; and/or a requirement for payment of attorneys' fees andcosts in case of the need to enforce the lease (including eviction). A lease is distinguished from a mere renting ofthe premises on a month-to-month basis and cannot exceed a year unless agreed to in writing.

lesseen. the person renting property under a written lease from the owner (lessor). He/she/it is the tenant and the lessoris the landlord.

lienn. any official claim or charge against property or funds for payment of a debt or an amount owed for servicesrendered. A lien is usually a formal document signed by the party to whom money is owed and sometimes by thedebtor who agrees to the amount due. A lien carries with it the right to sell property, if necessary, to obtain themoney. A mortgage or a deed of trust is a form of lien, and any lien against real property must be recorded withthe County Recorder to be enforceable, including an abstract of judgment which turns a judgment into a lienagainst the judgment debtor's property.

mortgagen. a document in which the owner pledges his/her/its title to real property to a lender as security for a loandescribed in a promissory note. To be enforceable the mortgage must be signed by the owner (borrower),acknowledged before a notary public, and recorded with the County Recorder or Recorder of Deeds. If the owner(mortgagor) fails to make payments on the promissory note (becomes delinquent) then the lender (mortgagee)can foreclose on the mortgage to force a sale of the real property to obtain payment from the proceeds, or obtainthe property itself at a sheriff's sale upon foreclosure. However, catching up on delinquent payments and payingcosts of foreclosure ("curing the default") can save the property. In some states the property can be redeemed bysuch payment even after foreclosure.

offern. a specific proposal to enter into an agreement with another. An offer is essential to the formation of anenforceable contract. An offer and acceptance of the offer creates the contract.


13/24

ownershipn. legal title coupled with exclusive legal right to possession. Co-ownership, however, means that more than oneperson has a legal interest in the same thing. paramount titlen. a right to real property which prevails over any other person's claim of title.

property taxn. an annual governmental tax on real property or personal property based on a tax rate (so many dollars or centsper $100 value of the property). The value is usually established by an Assessor, a county official.

possessionn. 1) any article, object, asset or property which one owns, occupies, holds or has under control. 2) the act ofowning, occupying, holding or having under control an article, object, asset or property.

premisesn. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designatedstructure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage)is insured or whether a person accused of burglary has actually entered a structure. 2) in legal pleading, premisesmeans "all that has hereinabove been stated," as in a prayer (request) at the end of a complaint asking for "anyfurther order deemed proper in the premises" (an order based on what has been stated in the complaint).

quiet enjoymentn. the right to enjoy and use premises (particularly a residence) in peace and without interference. Quietenjoyment is often a condition included in a lease. Thus, if the landlord interferes with quiet enjoyment, he/shemay be sued for breach of contract. Disturbance of quiet enjoyment by another can be a "nuisance" for which alawsuit may be brought to halt the interference or obtain damages for it. See also:nuisance

real estaten. land, improvements and buildings thereon, including attached items and growing things. It is virtually the sameas "real property," except real property includes interests which are not physical such as a right to acquire the

property in the future.See also:real property

real propertyn. 1) all land, structures, firmly attached and integrated equipment (such as light fixtures or a well pump), anythinggrowing on the land, and all "interests" in the property, which may include the right to future ownership(remainder), right to occupy for a period of time (tenancy or life estate), the right to drill for oil, the right to get theproperty back (a reversion) if it is no longer used for its current purpose (such as use for a hospital, school or cityhall), use of airspace (condominium) or an easement across another's property. Real property should be thoughtof as a group of rights like a bundle of sticks which can be divided. It is distinguished from personal propertywhich is made up of movable items. 2) one of the principal areas of law like contracts, negligence, probate, familylaw and criminal law.

tangible propertyn. physical articles (things) as distinguished from "incorporeal" assets such as rights, patents, copyrights andfranchises. Commonly tangible property is called "personalty."See also:in tangib le proper typersonal proper typersonal ty

tenantn. a person who occupies real property owned by another based upon an agreement between the person and thelandlord/owner, almost always for rental payments.See also:tenancy

vendorn. a seller, particularly of real property.
http://dictionary.law.com/default2.asp?selected=1358&bold=||||http://dictionary.law.com/default2.asp?selected=1358&bold=||||http://dictionary.law.com/default2.asp?selected=1358&bold=||||http://dictionary.law.com/default2.asp?selected=1727&bold=||||http://dictionary.law.com/default2.asp?selected=1727&bold=||||http://dictionary.law.com/default2.asp?selected=1727&bold=||||http://dictionary.law.com/default2.asp?selected=993&bold=||||http://dictionary.law.com/default2.asp?selected=993&bold=||||http://dictionary.law.com/default2.asp?selected=1518&bold=||||http://dictionary.law.com/default2.asp?selected=1518&bold=||||http://dictionary.law.com/default2.asp?selected=1521&bold=||||http://dictionary.law.com/default2.asp?selected=1521&bold=||||http://dictionary.law.com/default2.asp?selected=1521&bold=||||http://dictionary.law.com/default2.asp?selected=2099&bold=||||http://dictionary.law.com/default2.asp?selected=2099&bold=||||http://dictionary.law.com/default2.asp?selected=2099&bold=||||http://dictionary.law.com/default2.asp?selected=2099&bold=||||http://dictionary.law.com/default2.asp?selected=1521&bold=||||http://dictionary.law.com/default2.asp?selected=1518&bold=||||http://dictionary.law.com/default2.asp?selected=993&bold=||||http://dictionary.law.com/default2.asp?selected=1727&bold=||||http://dictionary.law.com/default2.asp?selected=1358&bold=||||


14/24

1.5. COMPANY LAW, COMPETITION, INTELLECTUAL PROPERTY,BANKRUPTCY:

agencyn. the relationship of a person (called the agent) who acts on behalf of another person, company, or government,known as the principal. "Agency" may arise when an employer (principal) and employee (agent) ask someone tomake a delivery or name someone as an agent in a contract. The basic rule is that the principal becomesresponsible for the acts of the agent, and the agent's acts are like those of the principal (Latin: respondeatsuperior).

antitrust lawsn. acts adopted by Congress to outlaw or restrict business practices considered to be monopolistic or whichrestrain interstate commerce. The Sherman Antitrust Act of 1890 declared illegal "every contract, combinationorconspiracy in restraint of trade or commerce" between states or foreign countries.

articles of incorporationn. the basic charter of a corporation which spells out the name, basic purpose, incorporators, amount and types ofstock which may be issued, and any special characteristics such as being non-profit. Each state has its ownsystem of approval of articles, prohibits names which are confusingly similar to those of existing corporations (so

an incorporator can test the name by applying to reserve the name), sets specific requirements for non-profits(charitable, religious, educational, public benefit, and so forth), and regulates the issuance of shares of stock.

balance sheetn. the statement of the assets and the liabilities (amounts owed) of a business at a particular time usuallyprepared each month, quarter of a year, annually, or upon sale of the business.

bankruptcyn. a federal system of statutes and courts which permits persons and businesses which are insolvent (debtors) or(in some cases) face potential insolvency, to place his/her/its financial affairs under the control of the bankruptcycourt. The procedure is that when the debtor's debts exceed his/her/its assets or ability to pay, the debtor can filea petition with the bankruptcy court for voluntary bankruptcy or the debtor's unpaid creditors can file an"involuntary" petition to force the debtor into bankruptcy, although voluntary bankruptcy is far more common. The

most common petition is under Chapter 7, in which a trustee is appointed by the court, the current assets arecounted up by the trustee (with many of them exempt from bankruptcy), who pays debts to the extent possiblewith priority for taxes, then secured debts (mortgages or some judgments), and finally unsecured debts. Then thecourt adjudicates (officially declares) the debtor a bankrupt and discharges the unpayable debts, to the loss of thecreditors. Chapter 11 bankruptcy allows a business to reorganize and refinance to be able to prevent finalinsolvency. Often there is no trustee, but a "debtor in possession," and considerable time to present a plan ofreorganization. Sometimes this works, but often it is just a bottomless pit of more debt and delay. Chapter 13 issimilar to Chapter 11, but is for individuals to work out payment schedules, which is more likely to be worthwhile.

board of directorsn. the policy managers of a corporation or organization elected by the shareholders or members. The board inturn chooses the officers of the corporation, sets basic policy, and is responsible to the shareholders. In smallcorporations there are usually only three directors. In larger corporations board members provide illustriousnames, but the company is often run by the officers and middle-management who have the expertise.

bondn. 1) written evidence of debt issued by a company with the terms of payment spelled out. A bond differs fromcorporate shares of stock since bond payments are pre-determined and provide a final payoff date, while stockdividends vary depending on profitability and corporate decisions to distribute.

book valuen. a determination of the value of a corporation's stock by adding up the stated value of corporate assets asshown on the books (records) of a corporation and deducting all the liabilities (debts) of the corporation. This maynot be the true value of the corporation or its shares since the assets may be under- or over-valued.

brokern. in general, a person who arranges contracts between a buyer and seller for a commission (a percentage of thesales price). These include real estate brokers (who have responsibility over an agency and its sales agents as

well as their own conduct), insurance brokers (handling more than one company rather than being an agent forjust a single carrier), and stockbrokers, who are the upper-level of stock salespersons and/or the operators of


15/24

brokerage houses. Brokers in the more technical fields (as above) are regulated and licensed by each state andhave a "fiduciary" duty to act in the best interests of the customer.

bylawsn. the written rules for conduct of a corporation, association, partnership or any organization. They should not beconfused with the articles of incorporation, which only state the basic outline of the company, including stockstructure

capital assetsn. equipment, property, and funds owned by a business.

capital stockn. the original amount paid by investors into a corporation for its issued stock. Capital stock bears no directrelationship to the present value of stock, which can fluctuate after the initial issue or first stock offering. Capitalstock also does not reflect the value of corporate assets, which can go up or down based on profits, losses, orpurchases of equipment. Capital stock remains as a ledger entry at the original price.

collusionn. where two persons (or business entities through their officers or other employees) enter into a deceitful

agreement, usually secret, to defraud and/or gain an unfair advantage over a third party, competitors, consumersor those with whom they are negotiating.

depreciationn. the actual or theoretical gradual loss of value of an asset (particularly business equipment or buildings) throughincreasing age, natural wear and tear, or deterioration, even though the item may retain or even increase itsreplacement value due to inflation. Depreciation may be used as a business deduction for income tax reduction,spread out over the expected useful life of the asset (straight line) or at a higher rate in the early years of use(accelerated).

derivative actionn. a lawsuit brought by a corporation shareholder against the directors, management and/or other shareholders ofthe corporation, for a failure by management. In effect, the suing shareholder claims to be acting on behalf of thecorporation, because the directors and management are failing to exercise their authority for the benefit of the

company and all of its shareholders. This type of suit often arises when there is fraud, mismanagement, self-dealing and/or dishonesty which are being ignored by officers and the board of directors of a corporation.

diligencen. reasonable care or attention to a matter, which is good enough to avoid a claim of negligence, or is a fairattempt (as in due diligence in a process server's attempt to locate someone).

divestituren. the court-ordered or voluntary giving up of a possession or right, which is a common result in an antitrust actionto prevent monopoly or other restraint of trade.

entityn. a general term for any institution, company, corporation, partnership, government agency, university or anyother organization which is distinguished from individuals

equity2) the net value of real property, determined by subtracting the amount of unpaid debts secured by (against) theproperty from the appraised value of the property.

face valuen. in shares of stock, the original cost of the stock shown on the certificate, or "par value."

fair market valuen. the amount for which property would sell on the open market if put up for sale. This is distinguished from"replacement value," which is the cost of duplicating the property. Real estate appraisers will use "comparable"


16/24

sales of similar property in the area to determine market value, adding or deducting amounts based on

differences in quality and size of the property See also:appraiseappraisermarket value

goodwilln. the benefit of a business having a good reputation under its name and regular patronage. Goodwill is nottangible like equipment, right to lease the premises or inventory of goods. It becomes important when a business

is sold, since there can be an allocation in the sales price for the value of the goodwill, which is always asubjective estimate.

insider tradingn. the use of confidential information about a business gained through employment in a company or a stockbrokerage, to buy and/or sell stocks and bonds based on the private knowledge that the value will go up or down.The victims are the unsuspecting investing public. It is a crime under the Securities and Exchange Act.

letter of creditn. a document issued by a bank guaranteeing to provide a customer a line of credit (automatic loan up to a certainamount) for money or security for a loan. Such a letter is used primarily to facilitate long-distance businesstransactions.

limited liabilityn. the maximum amount a person participating in a business can lose or be charged in case of claims against thecompany or its bankruptcy. A stockholder in a corporation can only lose his/her investment, and a limited partnercan only lose his/her investment, but a general partner can be responsible for all the debts of the partne rship.Parties to a contract can limit the amount each might owe the other, but cannot contract away the rights of a thirdparty to make a claim.See also:corporat ionl imi ted partnershipl iquid ated damagespartnershipshareholder

mergern. 1) in corporate law, the joining together of two corporations in which one corporation transfers all of its assets tothe other, which continues to exist. In effect one corporation "swallows" the other, but the shareholders of theswallowed company receive shares of the surviving corporation. A merger is distinguished from a "consolidation,"in which both companies join together to create a new corporation.

misfeasancen. management of a business, public office or other responsibility in which there are errors and an unfortunateresult through mistake or carelessness, but without evil intent and/or violation of law. Misfeasance is distinguishedfrom "malfeasance," which is intentional conduct in violation of the law.See also:malfeasance

partnershipn. a business enterprise entered into for profit which is owned by more than one person, each of whom is a"partner." A partnership may be created by a formal written agreement, but may be based on an oral agreementor just a handshake. Each partner invests a certain amount (money, assets and/or effort) which establishes anagreed-upon percentage of ownership, is responsible for all the debts and contracts of the partnership eventhough another partner created the debt or entered into the contract, has a share in management decisions, and

shares in profits and losses according to the percentage of the total investment. Often a partnership agreementmay provide for certain division of management, shares of investment, profit and/or rights to buy out a partnerupon leaving the partnership or death. Each partner owes the other partners a duty of full disclosure ofinformation which affects the business and cannot commandeer for himself/herself business opportunities whichrightfully belong to the partnership.

patent infringementn. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued bythe government, without obtaining permission of the owner of the patent by contract, license or waiver. Theinfringing party will be liable to the owner of the patent for all profits made from the use of the invention, as well asany harm which can be shown by the inventor, whether the infringement was intentional or not.

pierce the corporate veilv. to prove that a corporation exists merely as a completely controlled front (alter ego) for an individual ormanagement group, so that in a lawsuit the individual defendants can be held responsible (liable) for damages foractions of the corporation. If a corporation has issued stock and held regular meetings of shareholders and
http://dictionary.law.com/default2.asp?selected=2418&bold=||||http://dictionary.law.com/default2.asp?selected=2418&bold=||||http://dictionary.law.com/default2.asp?selected=2419&bold=||||http://dictionary.law.com/default2.asp?selected=2419&bold=||||http://dictionary.law.com/default2.asp?selected=1216&bold=||||http://dictionary.law.com/default2.asp?selected=1216&bold=||||http://dictionary.law.com/default2.asp?selected=1216&bold=||||http://dictionary.law.com/default2.asp?selected=358&bold=||||http://dictionary.law.com/default2.asp?selected=358&bold=||||http://dictionary.law.com/default2.asp?selected=1167&bold=||||http://dictionary.law.com/default2.asp?selected=1167&bold=||||http://dictionary.law.com/default2.asp?selected=1171&bold=||||http://dictionary.law.com/default2.asp?selected=1171&bold=||||http://dictionary.law.com/default2.asp?selected=1460&bold=||||http://dictionary.law.com/default2.asp?selected=1460&bold=||||http://dictionary.law.com/default2.asp?selected=1948&bold=||||http://dictionary.law.com/default2.asp?selected=1948&bold=||||http://dictionary.law.com/default2.asp?selected=1948&bold=||||http://dictionary.law.com/default2.asp?selected=1196&bold=||||http://dictionary.law.com/default2.asp?selected=1196&bold=||||http://dictionary.law.com/default2.asp?selected=1196&bold=||||http://dictionary.law.com/default2.asp?selected=1196&bold=||||http://dictionary.law.com/default2.asp?selected=1948&bold=||||http://dictionary.law.com/default2.asp?selected=1460&bold=||||http://dictionary.law.com/default2.asp?selected=1171&bold=||||http://dictionary.law.com/default2.asp?selected=1167&bold=||||http://dictionary.law.com/default2.asp?selected=358&bold=||||http://dictionary.law.com/default2.asp?selected=1216&bold=||||http://dictionary.law.com/default2.asp?selected=2419&bold=||||http://dictionary.law.com/default2.asp?selected=2418&bold=||||


17/24


18/24

judge), and which cannot be objected to on the basis that it is irrelevant, immaterial, or violates the rules againsthearsay and other objections.

appeal1) v. to ask a higher court to reverse the decision of a trial court after final judgment or other legal ruling. After thelower court judgment is entered into the record, the losing party (appellant) must file a notice of appeal, requesttranscripts or other records of the trial court (or agree with the other party on an "agreed-upon statement"), filebriefs with the appeals court citing legal reasons for over-turning the ruling, and show how those reasons (usuallyother appeal decisions called "precedents") relate to the facts in the case.

beyond a reasonable doubtadj. part of jury instructions in all criminal trials, in which the jurors are told that they can only find the defendantguilty if they are convinced "beyond a reasonable doubt" of his or her guilt. Sometimes referred to as "to a moralcertainty," the phrase is fraught with uncertainty as to meaning, but try: "you better be damned sure." Bycomparison it is meant to be a tougher standard than "preponderance of the evidence," used as a test to give

judgment to a plaintiff in a civil (non-criminal) case.

briberyn. the crime of giving or taking money or some other valuable item in order to influence a public official (anygovernmental employee) in the performance of his/her duties.

burden of proofn. the requirement that the plaintiff (the party bringing a civil lawsuit) show by a "preponderance of evidence" or"weight of evidence" that all the facts necessary to win a judgment are presented and are probably true. In acriminal trial the burden of proof required of the prosecutor is to prove the guilt of the accused "beyond areasonable doubt," a much more difficult task. Unless there is a complete failure to present substantial evidenceof a vital fact (usually called an "element of the cause of action"), the ultimate decision as to whether the plaintiffhas met his/her burden of proof rests with the jury or the judge if there is no jury.

capital punishmentn. execution (death) for a capital offense. The U.S. Supreme Court has vacil lated on the application of capitalpunishment, ruling in the Furman decision (1972) that capital punishment was a violation of the Eighth

Amendment's prohibition against "cruel and unusual punishment" in certain cases, and then reinstated it in 1976.

New York, which once led the nation in executions, abolished capital punishment but reinstated it in 1995. Thereis no capital punishment in Alaska, Hawaii, Iowa, Kansas, Massachusetts, Maine, Minnesota, Michigan, NorthDakota, Rhode Island, Vermont, West Virginia and the District of Columbia. There have been no federalexecutions in more than 30 years. Texas, Florida, Louisiana, Georgia, Virginia, and Alabama have held the mostexecutions in recent years. Means of capital punishment used in the United States include lethal injection,electrocution, gas chamber, hanging, and firing squad. All capital offenses require automatic appeals, whichmeans that approximately 2,500 men and women are presently on "death row" awaiting their appeals or death.

challengen. the right of each attorney in a jury trial to request that a juror be excused. There may be a "challenge for cause"on the basis the juror had admitted prejudice or shows some obvious conflict of interest (e.g. the juror used towork for the defendant or was once charged with the same type of crime) which the judge must resolve. If the

juror is excused (removed) "for cause," then the challenge does not count against the limited number ofchallenges allowed each side. More common is the "peremptory challenge," which is a request that a juror be

excused without stating a reason. An attorney might say: "Juror number eight may be excused." Only six or eightperemptory challenges are normally allowed each side.

circumstantial evidencen. evidence in a trial which is not directly from an eyewitness or participant and requires some reasoning to provea fact. There is a public perception that such evidence is weak ("all they have is circumstantial evidence"), but theprobable conclusion from the circumstances may be so strong that there can be little doubt as to a vital fact("beyond a reasonable doubt" in a criminal case, and "a preponderance of the evidence" in a civil case).Particularly in criminal cases, "eyewitness" ("I saw Frankie shoot Johnny") type evidence is often lacking and maybe unreliable, so circumstantial evidence becomes essential. Prior threats to the vic tim, fingerprints found at thescene of the crime, ownership of the murder weapon, and the accused being seen in the neighborhood, certainlypoint to the suspect as being the killer, but each bit of evidence is circumstantial. See also:evidence

corroborating evidencen. evidence which strengthens, adds to, or confirms already existing evidence


19/24

cross-examinationn. the opportunity for the attorney (or an unrepresented party) to ask questions in court of a witness who hastestified in a trial on behalf of the opposing party. The questions on cross-examination are limited to the subjectscovered in the direct examination of the witness, but importantly, the attorney may ask leading questions, in whichhe/she is allowed to suggest answers or put words in the witness's mouth.

double jeopardyn. placing someone on trial a second time for an offense for which he/she has been previously acquitted, evenwhen new incriminating evidence has been unearthed. This is specifically prohibited by the Fifth Amendment tothe U.S. Constitution, which states: "nor shall any person be subject for the same offence [sic] to be twice put in

jeopardy of life or limb"

duressn. the use of force, false imprisonment or threats (and possibly psychological torture or "brainwashing") to compelsomeone to act contrary to his/her wishes or interests. If duress is used to get someone to sign an agreement orexecute a will, a court may find the document null and void. A defendant in a criminal prosecution may raise thedefense that others used duress to force him/her to take part in an alleged crime.

embezzlementn. the crime of stealing the funds or property of an employer, company or government or misappropriating moneyor assets held in trust.

exclusionary rulen. the rule that evidence secured by illegal means and in bad faith cannot be introduced in a criminal trial. Thetechnical term is that it is "excluded" upon a motion to suppress made by the lawyer for the accused. It is basedon the constitutional requirement that "no [person] can be deprived of life, liberty, or property, without due

process of law" (Fifth Amendment to the Constitution, applied to the states by 14th Amendment.

felonyn. 1) a crime sufficiently serious to be punishable by death or a term in state or federal prison, as distinguishedfrom a misdemeanor which is only punishable by confinement to county or local jail and/or a fine.

fruit of the poisonous treen. in criminal law, the doctrine that evidence discovered due to information found through illegal search or otherunconstitutional means (such as a forced confession) may not be introduced by a prosecutor. The theory is thatthe tree (original illegal evidence) is poisoned and thus taints what grows from it. For example, as part of acoerced admission made without giving a prime suspect the so-called "Miranda warnings" (statement of rights,including the right to remain silent and what he/she says will be used against them), the suspect tells the policethe location of stolen property. Since the admission cannot be introduced as evidence in trial, neither can thestolen property.See also:Miranda warnin g

hearingn. any proceeding before a judge or other magistrate (such as a hearing officer or court commissioner) without a

jury in which evidence and/or argument is presented to determine some issue of fact or both issues of fact andlaw. While technically a trial with a judge sitting without a jury fits the definition, a hearing usually refers to briefsessions involving a specific question at some time prior to the trial itself, or such specialized proceedings asadministrative hearings. In criminal law, a "preliminary hearing" is held before a judge to determine whether theprosecutor has presented sufficient evidence that the accused has committed a crime to hold him/her for trial. See also:admin istrat ive hearingprel iminary h earingtr ial

hung juryn. slang for a hopelessly deadlocked jury in a criminal case, in which neither side is able to prevail. Usually it

means there is no unanimous verdict (although in Oregon and Louisiana 10 of 12 jurors can convict or acquit). Ifthe jury is hung the trial judge will declare a mistrial. A new trial from scratch, with a new jury panel, is required.
http://dictionary.law.com/default2.asp?selected=1255&bold=||||http://dictionary.law.com/default2.asp?selected=1255&bold=||||http://dictionary.law.com/default2.asp?selected=1255&bold=||||http://dictionary.law.com/default2.asp?selected=2333&bold=||||http://dictionary.law.com/default2.asp?selected=2333&bold=||||http://dictionary.law.com/default2.asp?selected=1580&bold=||||http://dictionary.law.com/default2.asp?selected=1580&bold=||||http://dictionary.law.com/default2.asp?selected=2161&bold=||||http://dictionary.law.com/default2.asp?selected=2161&bold=||||http://dictionary.law.com/default2.asp?selected=2161&bold=||||http://dictionary.law.com/default2.asp?selected=2161&bold=||||http://dictionary.law.com/default2.asp?selected=1580&bold=||||http://dictionary.law.com/default2.asp?selected=2333&bold=||||http://dictionary.law.com/default2.asp?selected=1255&bold=||||


20/24

The prosecutor can decide not to re-try the case, particularly if a majority of the jury favored acquittal.See also:dismissalju rymistr ia ltr ial

indictmentn. a charge of a felony (serious crime) voted by a Grand Jury based upon a proposed charge, witnesses'

testimony and other evidence presented by the public prosecutor (District Attorney). To bring an indictment theGrand Jury will not find guilt, but only the probability that a crime was committed, that the accused person did itand that he/she should be tried. District Attorneys often only introduce key facts sufficient to show the probability,both to save time and to avoid revealing all the evidence. The Fifth Amendment to the U.S. Constitution providesthat "No person shall be held to answer for a capital, or otherwise infamous crime, unless on presentment of aGrand Jury."

jury trialn. a trial of a lawsuit or criminal prosecution in which the case is presented to a jury and the factual questions andthe final judgment are determined by a jury. This is distinguished from a "court trial" in which the judge decidesfactual as well as legal questions, and makes the final judgment.

juvenile delinquentn. a person who is under age (usually below 18), who is found to have committed a crime in states which havedeclared by law that a minor lacks responsibility and thus may not be sentenced as an adult.

larcenyn. the crime of taking the goods of another person without permission (usually secretly), with the intent of keepingthem. It is one form of theft. Some states differentiate between grand larceny and petty larceny based on thevalue of the stolen goods. Grand larceny is a felony with a state prison sentence as a punishment and pettylarceny is usually limited to county jail time.

libel1) n. to publish in print (including pictures), writing or broadcast through radio, television or film, an untruth aboutanother which will do harm to that person or his/her reputation, by tending to bring the target into ridicule, hatred,scorn or contempt of others.

malice aforethoughtn. 1) the conscious intent to cause death or great bodily harm to another person before a person commits thecrime. Such malice is a required element to prove first degree murder. 2) a general evil and depraved state ofmind in which the person is unconcerned for the lives of others.

manslaughtern. the unlawful killing of another person without premeditation or so-called "malice aforethought" (an evil intentprior to the killing). It is distinguished from murder (which brings greater penalties) by lack of any prior intention tokill anyone or create a deadly situation. There are two levels of manslaughter: voluntary and involuntary.

Miranda warningn. the requirement, also called the Miranda rule, set by the U.S. Supreme Court in Miranda v. Arizona (1966) thatprior to the time of arrest and any interrogation of a person suspected of a crime, he/she must be told that he/shehas: the right to remain silent, the right to legal counsel, and the right to be told that anything he/she says can beused in court against him/her.

mitigating circumstancesn. in criminal law, conditions or happenings which do not excuse or justify criminal conduct, but are consideredout of mercy or fairness in deciding the degree of the offense the prosecutor charges or influencing reduction ofthe penalty upon conviction.

parolen. 1) the release of a convicted criminal defendant after he/she has completed part of his/her prison sentence,based on the concept that during the period of parole, the released criminal can prove he/she is rehabilitated andcan "make good" in society.
http://dictionary.law.com/default2.asp?selected=539&bold=||||http://dictionary.law.com/default2.asp?selected=539&bold=||||http://dictionary.law.com/default2.asp?selected=1076&bold=||||http://dictionary.law.com/default2.asp?selected=1076&bold=||||http://dictionary.law.com/def

Documents

slovarček ang