Business Law FBLA:Key Terms and Definations.
Acceptance - ansThe second party's unqualified willingness to go along with the first party's proposal
Accord and Satisfaction - ansA legal way to settle contractual disputes by which one party agrees to accept less
than the amount due as full payment
Actual Authority - ansThe real power a principal gives to an agent
Actual Notice - ansA formal notice given directly to a party, usually using certified mail with a receipt
Adhesion contract - ansA take-it-or-leave-it offer made by a party who holds most of the power in a bargaining
session
Administrative Law - ansThe body of rules created by government agencies
Agency - ansA type of working relationship in which one person represents another person in a business
transaction with a third party
Agency by Estoppel - ansWhen the principal's actions lead the third party to believe that the agent is working
for the principal (appointed but not officially)
Agent - ansThe person who has been authorized to do the work
Alternative Dispute Resolution - ansParties try to resolve disagreements outside of the usual court system, by
mediation, arbitration, conciliation, and negotiation
Annual Percentage Rate (APR) - ansThe true interest rate of a loan
, Apparent Authority - ansAuthority that a 3rd party believes an agent has while acting on behalf of the principal
Appellate Court - ansThe U.S. courts of appeals in federal system; hears appeals and reviews cases from the
lower courts
Arraignment - ansA formal hearing during which the defendant is read the indictment or info and is asked to
plead guilty or not guilty
Arrest - ansOccurs when a person is legally deprived of his or her freedom
Articles of Incorporation - ansA legal document filed with the state to establish a corporation
Assault - ansAttempt to commit a battery
Asset Acquisition - ansWhen one corporation agrees to purchase the assests, such as property, building, and
equipment, of a second corporation
Assignment - ansThe transfer of a right under contract
Assumption of Risk - ansA defense against negligence that is raised when the plaintiff knew of the risk and still
took the chance of being injured
Bail - ansMoney or other property that is left with the court to assure that a person who has been arrested, but
released, will return to jail
Bailment - ansThe transfer of possession and control of personal property to another with the intent that the
same property will be returned later
Bankruptcy - ansThe legal process by which a debtor can make a fresh start through the sale of assets to pay off
Acceptance - ansThe second party's unqualified willingness to go along with the first party's proposal
Accord and Satisfaction - ansA legal way to settle contractual disputes by which one party agrees to accept less
than the amount due as full payment
Actual Authority - ansThe real power a principal gives to an agent
Actual Notice - ansA formal notice given directly to a party, usually using certified mail with a receipt
Adhesion contract - ansA take-it-or-leave-it offer made by a party who holds most of the power in a bargaining
session
Administrative Law - ansThe body of rules created by government agencies
Agency - ansA type of working relationship in which one person represents another person in a business
transaction with a third party
Agency by Estoppel - ansWhen the principal's actions lead the third party to believe that the agent is working
for the principal (appointed but not officially)
Agent - ansThe person who has been authorized to do the work
Alternative Dispute Resolution - ansParties try to resolve disagreements outside of the usual court system, by
mediation, arbitration, conciliation, and negotiation
Annual Percentage Rate (APR) - ansThe true interest rate of a loan
, Apparent Authority - ansAuthority that a 3rd party believes an agent has while acting on behalf of the principal
Appellate Court - ansThe U.S. courts of appeals in federal system; hears appeals and reviews cases from the
lower courts
Arraignment - ansA formal hearing during which the defendant is read the indictment or info and is asked to
plead guilty or not guilty
Arrest - ansOccurs when a person is legally deprived of his or her freedom
Articles of Incorporation - ansA legal document filed with the state to establish a corporation
Assault - ansAttempt to commit a battery
Asset Acquisition - ansWhen one corporation agrees to purchase the assests, such as property, building, and
equipment, of a second corporation
Assignment - ansThe transfer of a right under contract
Assumption of Risk - ansA defense against negligence that is raised when the plaintiff knew of the risk and still
took the chance of being injured
Bail - ansMoney or other property that is left with the court to assure that a person who has been arrested, but
released, will return to jail
Bailment - ansThe transfer of possession and control of personal property to another with the intent that the
same property will be returned later
Bankruptcy - ansThe legal process by which a debtor can make a fresh start through the sale of assets to pay off
