Law and Ethics I & II Compiled Terms
Unconditional
"I will pay you on Tuesday." is an example of this type of promise to pay
priority
(1) the order in which claims will be paid when there are insufficient assets to pay all of the claims; (2) the order in which certain classes of people have the right to make decisions concerning the disposition of the dead body.
Board of Directors
A body of persons elected by the stockholders to define and establish corporate policy
Malpractice
A breach of contract by a professional person; failure to perform a professional service with the ability and care generally exercised by others in the profession
Corporation
A business entity created by statutory law and owned by individuals known as stockholders
Sole Proprietorship
A business owned and carried on by one person
Sole Proprietorship
A business owned by one person who is subject to claims of creditors
Bailor
A case of someone finding and taking possession of lost property is a bailment for the sole benefit of this party
Cashier's Check
A check drawn on a bank's own funds and signed by a responsible bank official
Certified Check
A check for which the bank assures that the drawer has sufficient funds to make a payment
Certified Check
A check for which the bank assures that the drawer has sufficient funds to make payment
Mental Anguish
A condition which may result from an outrageous intentional or grossly negligent act and may be accompanied by physical injury
Life Insurance
A contract by which the insurer agrees to pay a beneficiary a specified sum upon the death of the insured
Executory Contract
A contract in which the terms have not been fully carried out by all parties
Specific Performance
A contract remedy by which the court requires the breaching party to perform the contract
Insurance
A contract whereby a party transfers a risk of financial loss to a risk bearer for a fee
Bilateral Contract
A contract which consists of mutual promises to perform some future acts
Valid Contract
A contract which will be enforced by the court
Voidable Contract
A contract which would be an enforceable agreement, but no due to circumstances may be set aside by one of the parties
Private Corporation
A corporation formed by individuals to carry out some non-governmental function
Public Corporation
A corporation formed to carry out government funcions
Public Corporation
A corporation formed to carry out government functions
Domestic Corporation
A corporation in the state in which it received its initial charter
Alien Corporation
A corporation that is incorporated in another country
Domestic Corporation
A corporation that operates in the state that granted the charter
Precedent
A court decision that determines the decision in a subsequent, similar case
Subchapter S Corporation
A creation of the tax codes; shareholders elect to be taxed as a partnership (no double taxation) without losing corporation status
Secured Claim
A debt which is supported by a pledge, mortgage or lien on assets belonging to the debtor.
Judgement
A decision of a court of law
Quitclaim Deed
A deed that transfers whatever interest a grantor has in a property, but makes no claims as to what that interest may be
General Warranty
A deed that warrants that a grantor has good title to a real property and further warrants that the grantor will defend the grantee against all claims by third parties
Close Corporation
A designation which applies to a corporation in which outstanding share of stock and managerial control are held by a limited number of people (often members of the same family)
Bill of Sale
A document of conveyance which provides written evidence of one's title to tangible personal property
Bill of Sale
A document that conveys or evidences title to tangible personal property
Administrative Agency
A governmental body created by legislation empowered to regulate and issue rules and regulations
Uniform Anatomical Gift Act
A law permitting a person of legal age and sound mind to give all or any part of his/her body to take effect upon his/her death or gives the right to another
Statute of Limitations
A law that restricts the period of time within which an action may be brought the court
Statute of Limitations
A law that restricts the period of time within which an action may be brought to court
Misdemeanor
A less serious criminal offense, generally punishable by fine and/or imprisonment of less than one year
Duress
A means of destroying another's free will by one party obtaining consent to a contract as a result of a wrongful threat to do the other person or family members some harm
Assignment
A means whereby one party in a contract conveys rights to another party, who is not a party to the original contract
Assignment
A means whereby one party in a contract conveys rights to another person, who is not a party to the original contract
Felony
A more serious criminal offense that is punishable by death or by imprisonment in a penitentiary for more than one year
Promissory Note
A negotiable instrument containing a promise to pay
Summons
A notice given to a defendant, attaching the complaint and stating a time frame in which an answer must be filed or an appearance made
Silent Partner
A partner has all the rights and liabilities of a general partner but does not want to be actively engaged in the day to day operations
Secret Partner
A partner that has all the rights of a general partner and is actively engaged but is not disclosed as being a partner and has unlimited liability when discovered by the public
General Partner
A partner that has unlimited liability and are actively engaged in management and operation of the business while sharing the profits and losses of the business
Limited Partner
A partner that is created by the partnership itself obtaining the status of a limited partnership and the amount of liability is limited by the amount of investment
Dormant Partner
A partner that is not actively engaged in the business and is not disclosed as a partner that has unlimited liability when discovered by the public
Nominal Partner
A partner that is not legally a partner but may be a paid consultant that has some interest in the business succeeding (i.e. held out as a partner)
Principal
A party who appoints a second party to serve as an agent
Injunction
A permanent judicial order or decree forbidding the performance of a certain act
Bearer
A person in possession of an instrument
Funeral Director
A person properly licensed, engaged in, or conducting, or holding himself/herself out as being engaged in: 1. preparing, other than by embalming, for the burial or disposition of dead human bodies; and/or 2. maintaining or operating a funeral establishment for the preparation and disposition, or for the care of dead human bodies
Endorsee
A person who becomes the holder of a negotiable instrument by endorsement which names him or her as the person to whom the instrument is negotiated
Endorsee
A person who becomes the holder of a negotiable instrument by endorsements which names him or her as the person to whom the instrument is negotiated
Merchant
A person who deals in goods of the kind or otherwise by occupation purports to have knowledge or skill peculiar to the practices or goods involved in the transaction
Creditor Beneficiary
A person who is not a party to a contract to whom the promisor of a contract owes an obligation or duty
Promoter
A person who takes the initial steps to form a corporation
Term Insurance Policy
A policy where the company assumes, for a specified period of time, the risk of death of the insured
Mutual Benefit
A private carrier's contract for transporting goods is an example of this type of bailment
Tort
A private or civil wrong, other than by breach of contract, for which there may be action for damages
Tort
A private or civil wrong, other than by breach of contract, for which there may be damages
Valid Consideration
A promise to refrain from doing an act that can be lawfully done
Offer
A proposal to make a contract
Legal Rate of Interest
A rate that is applied when no rate is specified
Bill of Lading
A receipt and contract between the shipper of a particular good and a carrier
Contract to Sell
A seller agrees to transfer title to goods for a consideration (price) at a future time
Endorsement
A signature on the back of an instrument along with any directions or limitations regarding use of or liability for the instrument
Breach of Contract
A situation in which one of the parties to a contract fails or otherwise refuses to perform the obligations established in that contract
Statute of Frauds
A statute originally enacted by English Parliament, and now enacted in some form in all the American states, listing certain types of contract which could only be enforced if in written form
Donee Beneficiary
A third party beneficiary to whom no legal duty is owed and for whom performance is a gift
Nominal Damages
A token award to symbolize vindication of the wrong done to the plaintiff, generally the award is $1.00
Insurable
A type of interest in the nonoccurence of the risk insured against`
Holographic Will
A will written entirely by the testator with his own hand.
Concealment
A willful failure to disclose pertinent information by the insured
Commercial Paper (Negotiable Instrument)
A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit
Commercial Paper/Negotiable Instrument
A writing drawn in a special form which can be transferred from person to person as a substitute for money or as an instrument of credit
Bill of Exchange
A written order by one person directing another to pay a sum of money to a third person
Petition
A written request initiating a civil suit (P)
Complaint/Petition
A written request to a court to settle a dispute
Trust Account
Account established by one individual to be held for the benefit of another (as a method of payment of funeral expenses); creates a fiduciary responsibility. Money paid to a funeral home for future services is placed in an account with the funeral home as trustee for the benefit of another
Federal Trade Commission (FTC)
Agency of federal government created in 1914 to promote free and fair competition by prevention of trade restraints, price fixing, false advertising and other unfair methods of competition
Officers
Agents of the corporation
Non-Guaranteed Contract
Agreement in which the funeral home promises to apply the amount pre-paid plus any accruals to the balance due. However, the cost of the funeral will be based upon the current price for the services and merchandise at the time the services are provided
Revocable Contract
Agreement which may be terminated by the purchaser at any time prior to the death of the beneficiary with a refund of the monies paid on the contract as prescribed by state law
Third Party Contracts
Agreements which are incident to providing services and merchandise other than by the funeral establishment i.e. caskets, vaults, urns, , cremation services, etc.
Personal Property
All property that is not real property
Personal Property
All property which is not real property
Bailment
An act of delivering goods (mainly personal property) for a particular purpose without the transfer of ownership
Outrageous Act
An act with complete disregard for proper conduct which transcends the bounds of common decency
codicil
An addition or amendment of a last will and testament executed with the same formality as the will.
Power Over Business Practices
An agency's power to determine whether the activity of a regulated entity is acceptable or not is an example of this type of power
Special Agent
An agent who is authorized to carry out all of the principal's business of a particular kind
Implied Authority
An agent's authority to do things not specifically authorized in order to carry out express authority
Contract
An agreement between two or more competent persons which is enforceable by law.
Irrevocable Contract
An agreement for future funeral services which cannot be terminated or canceled prior to the death of the beneficiary
Accord and Satisfaction
An agreement made and executed in satisfaction of the rights one has from a previous contract
Void Contract
An agreement of no legal effect
Acceptance
An agreement to an offer resulting in a contract
Guaranteed Contract
An agreement whereby the funeral home promises that the services and merchandise will be provided at the time of need (in the future) for a sum not exceeding the original amount of the aforementioned contract plus any accruals, regardless of the current prices associated with providing the services and merchandise at the time of the funeral
Unenforceable Contract
An agreement which at the current time is not enforceable by law
Corporation
An artificial being, existing only in contemplation of law
Compensatory Damages
An award paid to the injured party to cover the exact amount of their loss but no more
Punitive Damages
An award paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff
Restrictive
An endorsement that attempts to prevent the use of instrument for anything except the stated use
Special Endorsement
An endorsement which designates the particular person to whom payment is to be made
Qualified Endorsement
An endorsement which limits the liability of the endorser
Restrictive Endorsement
An endorsement which prevents the use of the instrument for anything except the stated use
Promissory Estoppel
An equitable doctrine that prevents the promisor from revoking the promise when the promisee justifiably acts in reliance upon the promise to his detriment
Silent Partner
An individual who takes no active part in the management of a partnership, but has capital invested in the business
Will
An instrument executed with required formality by a person making disposition of their property to take effect upon their death.
Universal Life Policy
An insurance product combining features of both whole life and term life policies
Counteroffer
An intended acceptance which changes or qualifies an original offer and in effect, rejects that offer and becomes a new offer
Crime
An offense which is injurious to society as a whole
Check
An order by a depositor on the bank to pay a sum of money to a payee
Common Carrier
Any carrier required by law to convey passengers or freight without refusal if the approved fare or charge is paid (e.g., airline, train, etc.)
Outer Burial Container
Any container which is designed for placement in the grave around the casket including, but not limited to, containers commonly known as burial vaults, grave boxes, and grave liners
Ultra Vires Contract
Any contract entered into by a corporation that goes beyond its powers
Simple Contract
Any contract other than a formal contract, whether written, oral, or implied
Person
Any individual, partnership, corporation, association, government or governmental subdivision or agency or other entity
Cash Advance Items
Any item of service or merchandise described to a purchaser as a "cash advance," "accommodation," "cash disbursement," or similar term. A cash advance item is also any item obtained from a third party and paid for by the funeral provider on the purchaser's behalf. Cash advance items may include, but are not limited to: cemetery or crematory services; pallbearers; public transportation; clergy honorarium; flowers; musicians or singers; nurses; obituary notices; gratuities; and death certificates.
Bailee
Any loss or damage to bailed property due to no fault of the bailee falls on the owner is an example of a bailment for the sole benefit of this party
Crematory
Any person, partnership or corporation that performs cremation and sells funeral goods
Funeral Provider
Any person, partnership or corporation that sells or offers to sell funeral goods and funeral services to the public
Funeral Services
Any services which may be used to: (1) care for and prepare deceased human bodies for burial, cremation or other final disposition; and (2) arrange, supervise or conduct the funeral ceremony or the final disposition of deceased human bodies.
Case Law
Appellate court decisions that establish precedented principles
Livery
Automotive equipment made available for hire
Non-Declinable Service Fee
Basic services is the only fee which the consumer cannot decline (unless state or local law requires otherwise). Funeral Provider should recover expenses for services, facilities or unallocated overhead in this charge.
Services of Funeral Director and Staff
Basic services, not to be included in prices of other categories in Section 453.2(b)(4), that are furnished by a funeral provider in arranging any funeral, such as conducting the arrangements conference, planning the funeral, obtaining necessary permits, and placing obituary notices
Interstate
Between two or more states
Rescission
Canceling, annulling, avoiding
Graveside Service
Ceremony commemorating the deceased at a place of final disposition
Memorial Service
Ceremony commemorating the deceased without the body present
Shares
Certificates that represent ownership in a stock corporation
Casket Handling Fees
Charge, fee or surcharge applied to consumers who purchase their casket elsewhere from a source other than the price list/funeral provider
Arraignment
Charging a person with a crime and asking for that person's plea
Order Paper
Commercial paper made payable to the order of some named party; the word order or its equivalent must be used
Bearer Paper
Commercial paper made payable to whoever has possession of it
Bearer Paper
Commercial paper payable to bearer; i.e. to the person having possession of such
Precedents
Common law cases are decided on the basis of ____
Ratification
Conforming an act which was executed without authority or an act which was voidable
Bill of Rights
Consists of ten amendments to the U.S. constitution specifically designed to protect the civil rights and liberties of citizens and the states
Term Life Policy
Contract whereby insurer assumes risk of death of insured for a specific time with no cash surrender value
Voidable
Contracts that are made by people who have become so intoxicated that they cannot understand the meaning of their acts are considered ____
Trial Court
Court which conducts the original trial and renders its decision
Trial Court
Court which conducts the original trial and renders its decision; action for damages
Appellate Courts
Courts hearing cases appealed from a lower court
Binding Contract
Created when an offeree accepts an offer that has been properly communicated
Common Law
Customs which have become recognized by the courts as binding on the community
Effective Date
Date that the specific price list was put into use
Foreign Corporation
Designation that applies when a corporation operates in any state other than where it is chartered
Immediate Burial
Disposition of human remains by burial, without formal viewing, visitation or ceremony with the body present, except for a graveside service
Direct Cremation
Disposition of human remains by cremation without formal viewing, visitation, or ceremony with the body present
Deed
Document conveying title to real property
Rules and Regulations
Enactments by an administrative body within the jurisdiction of that agency
Tying Arrangements
Exist when a seller requires the purchase of unwanted items/services in order to obtain the desired item/service
Negligence
Failure to exercise ordinary care; omission to do something which a reasonable prudent person would do under ordinary circumstances or the doing of something which a reasonable and prudent would not do; the lack of due care (a breach of a legal duty to act carefully resulting in injury to another or damage to another's property)
Negligence
Failure to exercise ordinary care; omission to do something which a reasonable prudent person would do under ordinary circumstances or the doing of something which a reasonable prudent would not do; the lack of due care (a breach of a legal duty to act carefully resulting in injury to another or damage to another's property)
Sherman Antitrust Act
Federal legislation intended to promote competition among businesses by prohibiting restraint of trade
Pre-Planned Funeral Arrangements
Funeral arrangements made in advance of need that do not include provisions for funding or prepayment
Pre-Funded Funeral Arrangements
Funeral arrangements made in advance of need that include provisions for funding or prepayment
Third Party Merchandise
Funeral goods consumer purchase from a source other than the price list/funeral provider
Telephone Price Disclosure
Funeral provider must give consumers who call accurate information from the price lists and answer questions about offerings and prices with readily available information
Funeral Goods
Goods which are sold or offered for sale directly to the public for use in connection with funeral services
Blank Endorsement
Having no words other than the signature of the endorser
Cremation
Heating process which incinerates human remains
Void
If a contract is not for a lawful purpose that must be achieved in a lawful manner then the contract is ____
Quasicontract
If a minor contracts for necessaries, the minor is not required to play the contract price but will e required to pay a reasonable amount to avoid unjust enrichment. This makes the contract a ____
Undue Influence
Improper influence that is asserted by one dominant person over another, without the threat of harm
Escrow Account
In funeral service, a vehicle used to hold monies paid on prefunded contracts and beyond the control of the funeral director
Consideration
Indicates what the promisor demands and receives as the price for a promise
Whole Life Policy
Insurance that covers an insured for life and accumulates cash surrender value
Life Estate
Interest in real property for duration of a person's life
Statement of Funeral Goods and Services Selected
Itemized written statement provided for retention to each person who arranges a funeral or other disposition. It must include the goods and services selected and prices paid for each, itemization of cash advance items and the total cost
Necessaries
Items, required or proper and useful, for sustaining a human being at an appropriate living standard (examples: food, clothing and shelter)
Qualified
James wants to endorse a check to Janice but wishes to rid himself from all further liabilities - what type of endorsement is this?
Real Property
Land and those objects permanently attached to land
Ordinance
Law enacted by a municipality
Criminal Law
Laws dealing with crimes and the punishment of wrongdoers
Statutes
Laws which are enacted by legislative bodies
Suicide
Life insurance contracts are commonly not claimable in cases involving this
Itemization
Method of price quotation by which each unit of service and/or merchandise is priced separately
Goods
Movable tangible personal property
Limited Liability Company
Newest form of business ownership recognized in the U.S. combines features of both the corporation and partnership
Limited Liability Company
Newest from of business ownership recognized in the U.S. combines features of both the corporation and partnership
Free Items
None of the specified items required to be separately itemized on the GPL can be listed as free or no charge. Items not required by the rule can be listed as free.
Fixture
Objects permanently attached to land
Triggering Event
Occurrence of situation that requires certain action
Tenancy at Sufferance
Occurs when a tenant holds over the tenancy after the expiration of the lease without the permission of the landlord
Answer
Official document detailing a defendant's defense
Special Agent
One authorized by the principal to execute specific act(s)
Special Agent
One authorized by the principal to execute specific acts
General Agent
One authorized to carry out all of the principal's business of a particular kind
Holder
One in possession of commercial paper
Implied Contract
One in which the terms of the contract are implied by acts or conduct of the parties
Forwarding of Remains
One of the 16 items specified required on the GPL (if the funeral provider offers the service). This involves services of the funeral provider in the locale where death occurs and preparation for transfer to another funeral provider as selected by the family (consumer). Funeral Rule requires package pricing of this service with a description of the components included.
Receiving Remains
One of the 16 specified items required on the GPL (if the funeral provider offers the service). This involved services of the funeral provider after initial services have been provided by another firm at the locale of death. Funeral Rule requires package pricing of this service with a description of the components included.
Transfer of Remains
One of the 16 specified items required on the GPL; defined as the moving of the dead human body from the place of death to the funeral home or other designated place (aka removal)
Independent Contractor
One who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as a means by which the contract is executed, except for specifications established in the contract
Independent Contractor
One who contracts to perform certain tasks for a set fee, but who is independent of the control of the contracting party as to a means by which the contract is executed, except for specifications established in the contract
Invitee
One who has been invited on the property by the landowner; persons coming to a funeral home for the purpose of attending funerals, viewing remains, or engaging the funeral director's services are some examples
Trustee
One who holds title to property or another position of trust to a beneficiary
heir
One who inherits, or is entitled to receive, property by will or laws intestacy.
General Agent
One who is authorized to execute the principal's business of a particular kind, or all the principal's business at a particular place, if not all of one kind
General Agent
One who is authorized to execute the principal's business of a particular kind, or all the principals business at a particular place, if not all of one kind
Consignee
One who receives goods shipped by common carrier
Consignor
One who ships goods by common carrier
Consignor
One who ships goofs by common carrier
Domestic Corporation
Operates in the state that granted the charter
Title
Ownership; evidence of ownership of property
Limited Partner
Partners who have their liability for the firm's debts limited to the amount of their investment
Third Party Beneficiary
Person not party to a contract, but whom parties intended to benefit
Endorser
Person who writes his or her name on back of an instrument
Fixture
Personal property attached to land or building that becomes part of the land
Intangible Personal Property
Personal property that lacks a physical presence
Clinical Death
Phase of somatic death lasting from 5-6 minutes during which life may be restored
Authority
Power to act for someone else
Discovery
Pretrial steps taken to learn the details of the case
Alternative Price List
Price lists which may be prepared for use in certain limited situations such as children/infants, for government agencies to provide for indigent persons, for agreements with religious groups, burial or memorial societies for members of their group
General Price List (GPL)
Printed or typewritten list of goods and services offered for sale by a funeral provider with retail prices. Considered the keystone of the Funeral Rule.
Outer Burial Container Price List (OBC PL)
Printed or typewritten list of outer burial containers normally offered for sale by the funeral provider which do not require special ordering. Must include retail price and enough descriptive information to enable consumers to identify the merchandise.
Casket Price List (CPL)
Printed or typewritten list of the casket and alternative containers normally offered for sale by the funeral provider which do not require special ordering. Must include retail price and enough descriptive information to enable consumers to identify the merchandise.
Contract Carrier
Provides transportation for compensation only to those with whom it desires to do business (e.g., livery service)
Antitrust Laws
Purpose of these is to promote competition among businesses
Beneficiary
Recipient of the proceeds of a life insurance policy
Uniform Commercial Code
Recognized as the most important statute in business law, it includes provisions which regulate certain sales of goods and negotiable instruments
Undue Influence
Refers to a person in a special relationship causing another's action contrary to free will
Commission
Refers to the Federal Trade Commission
Degree of Kindred
Relationship to decedent of his relatives; each generation is one degree, counting to a common ancestor
Appeal
Request to a higher court to review a lower court's decision
Mental Capacity
Required as a prerequisite for any agreement to be legally enforceable
Liability
Responsibility for actions and/or other debts; the quality or state of being legally obligated or accountable
Contract
Results when the parties intend to be legally obligated by the terms of the agreement
Agreement
Results whenever two people's minds meed on a subject
Casket
Rigid container which is designed for the encasement of human remains and which is usually constructed of wood, metal, fiberglass, plastic, or like material, and ornamented and lined with fabric
Bailor
Sally leaving her car in a neighbor's carage while Sally's carport is getting a new roof is an example of a bailment for the sole benefit of this party
Funeral Ceremony
Service commemorating the deceased with the body present
Exigent Circumstances
Situation requiring immediate action or urgency; FTC recognizes that funeral provider might embalm without permission
Mandatory Disclosures
Statements required by the Rule which cannot be modified or edited and must appear in a clear and conspicuous manner.
Misrepresentation
Stating an untrue fact
Custodian
Status associated with funeral service practitioner/funeral establishment who becomes legal protector of dead human body from time of removal until final disposition
True
T/F: A bailment can be created by the unspoken conduct of the parties
True
T/F: A bailment may exist when the recipient does not return the actual goods
True
T/F: A close corporation has a small number of stockholders
False
T/F: A common carrier is liable for a loss if it is transporting goods that pose a menace to health which are seized by a public authority
False
T/F: A common carrier may refuse service that is unprofitable
True
T/F: A common carrier may refuse to provide transport for goods if it does not have proper equipment
True
T/F: A common carrier of people is required to assist passengers when necessary for alighting
False
T/F: A contract is void if parties to a contract are mutually mistaken about their expectations
True
T/F: A contract negotiated by an agent usually involves at least three parties
True
T/F: A depository bank receiving a check with a restrictive endorsement, such as "for deposit" must always honor the restriction
True
T/F: A false statement made in belief that it is true is known as innocent misrepresentation
True
T/F: A finder has title to and absolute right to possession of abandoned property
True
T/F: A finder of lost property has the right of possession against all but the true owner, as long as the finder has not committed a wrong of some kind
True
T/F: A foreign corporation who has authority to do business in the state is allowed to form contracts
True
T/F: A grantor and grantee must be identified in a deed
True
T/F: A holder who takes a negotiable instrument in good faith and for value, is a holder in due course
True
T/F: A minor, upon reaching the age of majority, must ratify none or all parts of a contract
True
T/F: A partner who commits a tort has liability for indemnifying the partnership for any loss it sustains
False
T/F: A person who sells alcoholic beverages to a minor when such a sale is prohibited can recover on the contract
True
T/F: A principal may ratify an authorized contract and thus be bound on it
True
T/F: A principal must reimburse the agent for expenses incurred during the agency
False
T/F: A principal ordinarily does not have liability to third parties for contracts made within the actual or the apparent scope of an agent's authority
False
T/F: A promise to steal a valuable piece of art is valid consideration to support a contract
False
T/F: A qualified endorser makes no warranties regarding the instrument
True
T/F: A sole proprietor has ultimate responsibility for all business decisions
True
T/F: A sole proprietor has unlimited liability and high financial risk
False
T/F: A sole proprietor has very limited flexibility in managing the business
False
T/F: A special endorsement is having no words other than the name of the endorser
False
T/F: A special warranty deed warrants that a grantor has the right to sell a personal property
False
T/F: A state administrative agency affects businesses throughout the country
False
T/F: A tenancy for years is a tenancy for an indefinite period of time
True
T/F: Administrative agencies primarily set policy through the issuance of rules and regulations
True
T/F: Advertisements and catalogs are examples of general invitations
True
T/F: Agents have a duty to keep principals informed of all facts pertinent to the agency
False
T/F: All agreements are contracts
False
T/F: All partners of a limited partnership have limited liability
True
T/F: All people legally competent to act for themselves may act through an agent
True
T/F: An LLC can be dissolved with the written consent of all members
True
T/F: An LLC can be sued by third-parties as a separate entity
False
T/F: An agent does not incur liability for any losses caused by disobeying a principal's instructions
False
T/F: An agent does not incur personal liability for fraud or any other wrongdoing caused by disobedience
False
T/F: An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition
False
T/F: An easement gives an exclusive right to possession
False
T/F: An instrument made payable to more than one person is not negotiable
False
T/F: An insurer is a party who purchases insurance to provide protection from a loss
True
T/F: An offer expresses the willingness of the offeror to enter into a contractual agreement
False
T/F: An offer made in jest that does not appear to be seriously intended to an offeree is considered to be a valid offer
True
T/F: An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances
False
T/F: An order or promise in a negotiable instrument must be conditional
True
T/F: Any expense incurred as a result of an agent's unlawful act must be borne by the agent
True
T/F: Appellate courts include courts of appeals and supreme courts
False
T/F: As a general rule, a unilateral mistake made at the time of contracting has an effect on the validity of a contract
False
T/F: Common stockholders do not possess the right to a share of the assets of a corporation on dissolution
True
T/F: Consideration distinguishes mere agreements from legally enforceable obligations
False
T/F: Contracts which are designed to limit competition are acceptable by law
False
T/F: Dissolution of a partnership relieves the partners of their duties to each other
True
T/F: Dividends paid to shareholders can be paid with stock in a corporation owns in another company
True
T/F: Each state is part of the federal court system and has a state court system
False
T/F: For a promise to constitute consideration, the promise must not impose an obligation on the person making it
True
T/F: Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt
True
T/F: Generally, a promise must be supported by consideration
False
T/F: If a decision of an administrative agency conflicts with a statute enacted enacted by a higher legislative body, the agency decision will prevail
False
T/F: If a druggist sells morphine to one who does not have a prescription, a suit to collect the price would be successful
False
T/F: If an adult purchases personal property from a minor, the minor has only a voidable title to the property
False
T/F: If commercial paper is made payable to whoever has possession of it, it is called order paper
True
T/F: If parties want to mutually cancel an old contract and place it with a new one, there must be added features in the new contract benefiting both parties to be enforceable
False
T/F: If the choice of whether an instrument is payable in either cash or goods is left up to the holder, the instrument is not negotiable
True
T/F: If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer under the common law
True
T/F: If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid
True
T/F: If, after an offer has been made, the performance of the contract becomes illegal, the offer is terminated
True
T/F: In a situation where an injured party in an accident is partly to blame for the accident, the injured party cannot recover any damages because it is partially negligent in the case
True
T/F: In the legal system of the United States, it is possible for identically worded laws to have different consequences in different states
True
T/F: Insurance contracts must specify the particular risks being transferred from one party to another
False
T/F: Mistakes such as duress and undue influence render contracts void
True
T/F: One attempting to ratify must have been capable of authorizing the act at the time the act was done
True
T/F: One may have rights and obligations imposed by law even when no real contract exists
False
T/F: One who contracts with an independent contractor has more control over the performance of the work than does an employer
True
T/F: Ordinarily, for a mistake to invalidate a contract, the mistake must be a mutual one about a material fact
False
T/F: Performing or promising to perform what one is already obligated to do is a valid consideration
False
T/F: Ratification to a contract can be made any time before reaching majority
True
T/F: Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance
True
T/F: Silent partners take no part in the management of the business
True
T/F: Statutes are easier to amend than constitutions
False
T/F: Stockholders, by virtue of their investment in a corporation, have the right to act as its agent
False
T/F: The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance
True
T/F: The U.S. Supreme Court is the highest tribunal in the land and its decisions are binding on all other courts
True
T/F: The articles of incorporation constitutes a contract between the corporation and the state
False
T/F: The courts will generally still allow a wrongdoer to enforce a contract against an innocent party
True
T/F: The decision of appellate court is binding on lower courts
True
T/F: The delivery of the deed to the purchaser transfers the title to real estate
True
T/F: The doctrine of strict liability can make the manufacturer of a dangerously defective product liable, even if there's no proof of negligence
False
T/F: The grace period refers to the period of time in which an insurance company may investigate a death before paying the face
False
T/F: The law considers everyone under the age of 21 to be a minor
False
T/F: The law states that a unilateral contract can be formed when performance is started
True
T/F: The legal term for one party benefiting unfairly at the expense of another is unjust enrichment
True
T/F: The liability of a common carrier of people begins when the passenger enters the waiting platform
False
T/F: The maker executes a note by signing on the back of the instrument
False
T/F: The most common type of relief that courts of equity provide is monetary damages
True
T/F: The principal may terminate the agency by taking actions that are inconsistent with the continuation of the agency
True
T/F: The promise or obligation of each party to a contract must be supported by consideration in order for the contract to be valid
True
T/F: The sum payable in a negotiable instrument cannot be dependent on future profits
True
T/F: To bind the principal and not the agent, the agent should sign the contract as "agent for the principal"
False
T/F: To recover damages for an intentional tort, the plaintiff is required to prove that there was a breach of duty by the tortfeasor to the plaintiff
True
T/F: Unlimited personal liability of each general partner for partnership debts is a disadvantage of the partnership form of business
False
T/F: When a bailment is for the sole benefit of a bailor, a bailee may receive benefits of ownership during the bailment
True
T/F: When a contract is required to be sealed, a substitute for an actual seal may be used
True
T/F: When a corporation terminates its existence, it must surrender its articles of incorporation
True
T/F: When a partner makes an honest mistake without negligence while working on behalf of the partnership, both the partner and the partnership are excused from liability
False
T/F: When one party wrongly threatens to injure another person physically in order to get agreement to a contract, economic duress occurs
True
T/F: When there is a contract of agency, the law imposes duties not specified in the contract on both the agent and principal
True
T/F: With regards to negotiability, the instrument must be in writing and signed by the party executing it
Discharge
Termination of a contract by performance, agreement, impossibility, acceptance of breach, or operation of law
Administrative Law
That body of law created by Federal and State administrative agencies through implementation of powers and duties in the form of rules, regulations, orders and decisions (e.g., OSHA, FTC, state board rules and regulations)
Funeral Service Law
That branch of law which relates to matters concerned with the disposal of the dead and regulation of funeral directors/embalmers and funeral establishments
Quasi-Property Theory
The accepted theory of the legal status of a dead human body; rights associated with the body are as if it were property for the purpose of disposition only
Certificate of Deposit
The acknowledgement by a bank of a receipt of money with an agreement of repayment
Burial
The act of placing the dead human body in the ground
Negotiation
The act of transferring ownership of a negotiable instrument to another party
Negotiation
The act of transferring ownership of commercial paper to another party
Liquidated Damages
The amount of the damages stipulated in a contract to be paid in the event one party breaches the contract
Due Diligence
The attention reasonably expected from, and ordinarily exercised by, a person who seeks to satisfy a legal requirement or to discharge an obligation
Apparent Authority
The authority an agent is believed by third parties to have because of the behavior of the principal
Express Authority
The authority of an agent stated in the document or agreement creating the agency
Express Authority
The authority of an agent, stated in the document or agreement creating the agency
Survivorship
The automatic right of the remaining surviving owner(s) to own the entire property free of any interest of a deceased owner
Corpse
The body of a dead human being, deprived of life, but not yet entirely disintegrated
Civil Law
The body of law concerned with private or purely personal rights
Fee Simple Estate
The broadest form of ownership in real property
Execution
The carrying out or completion of some task
Death
The cessation of life; permanent cessations of all vital functions and signs
Dissolution
The change in the relation of the partners by ending the present legal entity
Final Disposition
The conclusive performance of services with respect to the dead human body by one of the legally recognized methods
Price
The consideration stipulated by contract, generally expressed in money or money-worth
Bill of Lading
The contract existing between the consignor and the carrier
Service Contracts
The contracting of services rather than goods
Peril
The danger of a loss of, or injury to, property, life, or anything else
Disaffirmation
The election to avoid a contract or set it aside
Ademption
The extinction or withdrawal of an inheritance because decedent did not own the property at the time of death.
Breach of Contract
The failure of a party to perform the obligations assumed under a contract
Cremated Remains
The final product remaining after completion of the entire cremation/pulverization process. The product is never referred to as "cremains"
Identified Goods
The goods specified by the buyer and seller
Lessee
The individual who has a duty to pay rent on the lease
Plaintiff
The individual who initiates a civil action
Gross Negligent Act
The intentional failure or the reckless disregard of the consequences with respect to conduct affecting the life or property of another
Fee Simple Estate
The largest and most complete right that one may possess in property
Crematory
The location of the retort/cremation chamber which will perform the cremation process
Face
The maximum amount that the insurer agrees to pay in case of a loss
Contractual Capacity
The necessity that the parties desiring to enter into contracts meet all requirements
Counteroffer
The offeree's response that rejects an offer by varying its terms
Lessor
The owner of leased property; the person giving possession of a leased property
Members
The owners or investors of a limited liability company
Agent
The party appointed by the principal to enter into a contract with a third party on behalf of the principal
Assignor
The party making the assignment
Payee
The party to whom any negotiable instrument is made payable
Assignee
The party to whom the assignment is made
Bailee
The party who acquires possession, but not the title, of personal property by one party to another, under agreement
Employer
The party who employs employees to do certain work
Bailor
The party who gives up possession, but not the title, of personal property in a bailment
Offeror
The party who initiates or makes an offer
Defendant
The person against whom legal action is brought
Employee
The person hired to perform work and who is obligated both as to the work to be done and as to the manner in which it is to be done
Offeree
The person to whom an offer is made
Maker
The person who executes a promissory note
Drawer
The person who executes any draft
Drawer
The person who executes the draft
Drawee
The person who is ordered to pay a draft
Endorser
The person who writes his or her name on the back of an instrument
Drawee
The person, company or financial institution ordered to pay a draft
Actual Custody
The physical possession of the dead human body or other property
Entombment
The placing of a remains in a crypt in a mausoleum
Authority
The power to act for someone else
Board of Directors
The primary policy-making body of the corporation
Stare Decisis
The principle that the decision of a higher court should serve as a guide or precedent and control the decision of a similar case in the future
Cremation
The reduction of a dead human body to inorganic bone fragments by intense heat in a specifically designed retort or chamber
Disaffirmance
The repudiation of, or election to avoid, a voidable contract
Title
The right of ownership of property or evidence of ownership
Endorsement
The signature or statement of purpose by the owner on the back of a negotiable instrument, which indicates the future control of the instrument
Constructive Custody
The situation whereby one a party has a right to acquire actual custody/possession of the dead body although another party has actual physical possession
Courts
The sole purpose of these is to interpret and apply the law from whatever source to a given situation
Novation
The substitution of a new party for one of the original parties to a contract, such that the prior contract terminates and a new one substitutes for it
Bailment
The transfer of possession, but not the title of personal property by one party to another, under agreement
Bailment
The transfer of possession, but not the title, of personal property by one party to another under agreement
Sale
The transfer of title to goods from the seller to the buyer for a consideration called the price
Conversion
The unauthorized exercise of ownership rights over another's property
Share
The unit value of a company's total stock
Partnership
The voluntary association of two or more people who have combined their resources to carry on as co-owners of a lawful enterprise for their joint profit
Complaint
The written request which initiates a civil law suit
Administrative Agencies
These can become specialists in a particular area of regulation
State Trial Courts
These courts handle cases that are first instituted in them
Regulatory Agencies
These use their licensing power to allow a business to enter the field being regulated
Supreme Court
This court has appellate jurisdiction in cases based on the U.S. Constitution
Obligation of Record
This is an exception to the idea that a promise must be supported by consideration
Automobile Accidents
This is the most likely case where there would be a tort based on negligence
Par Value Stock
This must equal the value of money, property, or services received by the corporation
Tenancy in Common
This occurs when two or more people own property such that when one owner dies, that owner's interest in the property passes to a person named in the deceased's will
Promissory Estoppel
This requires the promisor to reasonably expect the promise to induce action by the promisee
Quasicontract
This type of contract is not a true contract and has been imposed by law in order to prevent one party benefiting unfairly at another's expense
Executed Contract
This type of contract is when each party has completed performance of each part of the contract
Formal Contract
This type of contract must be in special form or be created in a certain way
Quasicontract
This type of contract prevents the unjust enrichment of a party
Special Federal Courts
This type of courts have jurisdiction limited by congress
Special
This type of endorsement designates the particular person to whom payment should be made
Insurable
This type of interest may arise when a party has sufficient economic interest in the transaction to entitle them to insure the property involved
Valid Offer
This type of offer is seriously intended
Executed Contract
Those contracts in which the terms have been fulfilled
Executory Contract
Those contracts in which the terms have not been completely executed or fulfilled by the parties
Formal Contract
Those contracts which must be in special form or produced in a certain way, such as under seal
Volunteer Driver
Those drivers not under the control of the funeral director
Agent Driver
Those drivers under the directions and control of the funeral establishment which is liable for the driver's negligent actions
Future Goods
Those goods selected which are not in existence at the time in which the contract was created
Existing Goods
Those goods which are, at the time of the contract, in existence and owned by the seller
Shareholders (Stockholders)
Those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation
Stockholders
Those having title to one or more shares of stock in a corporation; combined, they represent ownership of the corporation
General Partner
Those individuals actively and openly engaged in the business and held to everyone as a partner
Minor
Those persons under legal age; by most states (but not all), the standard is under the age of eighteen
Law
Those rules of conduct commanding what is right and prohibiting what is wrong
Private Carrier
Those who transport only in particular instances and only for those they choose to contract with (e.g., funeral home vehicles and livery)
Viewing
Time set aside for friends and relatives to pay respect for the deceased prior to the funeral service (calling hours, visitation, visiting hours, wake)
Cosigner
To obtain a cosigner is a good precaution to take when a business person is dealing with a ____
Breach of the Tortfeasor's Duty
To recover for a tort based on negligence, the plaintiff must show this to the injured party
Arrest
To take into police custody
Brain Death
Total and irreversible cessation of brain function as indicated by a flat EEG reading
Alternative Container
Unfinished wood box or other non-metal receptacle of enclosure, without ornamentation or a fixed interior lining, which is designed for the encasement of human remains and which is made of fiberboard, pressed-wood, composition materials (with or without an outside covering) or like materials
Packaged Pricing
Use of a single dollar amount to identify the charge for a group or bundle of goods and/or services
Forbearance
When one refrains or promises to refrain from doing something
Merger
When two companies combine their board of directors
Intrastate
Within a state
Commercial Paper
Writings drawn in a special form that can be transferred from person to person as a substitute for money or as an instrument of credit
preferred claim
a claim which is accorded a priority, advantage or privilege; a superior claim or right of payment as against another of the same kind or class. The first claim to be paid is the highest preferred claim and superior to all other claims.
probate court
a court having jurisdiction over estates
living will
a document which governs the withholding or withdrawal of life-sustaining treatment from an individual in the event of an incurable or irreversible condition that will cause death within a relatively short time, and when such person is no longer able to make decisions regarding his/her medical treatment
Funeral Establishment
a facility used in the care and preparation for the funeral and/or final disposition of dead human bodies
Americans with Disabilities Act
a federal statute prohibiting discrimination against the disabile in employment, public transportation, telecommunications services & public accomodations and services
devise
a gift
Occupational Safety and Health Administration (OSHA)
a governmental agency with the responsibility for regulation and enforcement of safety and health matters for most employees
Zoning ordinance
a law passed by a local unit of government which regulates and prescribes the land use planning
Uniform Probate Code
a model law to achieve uniformity in probate proceedings throughout the U.S.
guardian
a persona appointed by the court to administer the affairs of another person who is incompetent by virtue of age or legal disability
durable power of attorney
a power of attorney that remains in effect after the disability or incapacity of the principal
abatement
a proportional reduction of a devise when estate assets are not sufficient to pay it in full
Springing Power of Attorney
a written instrument authorizing one person to act as an agent for another effective only upon a certain event occurring.
general power of attorney
a written instrument granting the agent broad powers to act for the principal
Nuisance in fact
acts, occupations or structures which are not nuisances per se, but may become nuisances by reason of the location or manner in which it is operated.
Nuisance per se
acts, occupations or structures which are nuisances at all times and under all circumstances; it may be prejudicial to public morals, dangerous to life, or injurious to public rights.
Booking
administrative step taken after an arrested person is brought to police station, which involves entry of the person's name, the crime for which the arrest was made, and other relevant facts on the police "blotter", and which may also include photographing, fingerprinting, and the like
Solvent Estate
an estate in which the assets exceed the liabilities
power of attorney
an instrument granting someone authority to act as agent or attorney-in-fact for the grantor; an ordinary power of attorney is revocable and automatically terminates upon the death or incapacity of the principal.
Check
an order by a depositor on the bank to pay a sum of money to a payee
common carrier
any carrier required by law to convey passengers or freight without refusal if the approved fare or charge is paid (airline, train, etc.)
livery
automotive equipment made available for hire
escheat
forfeiture of a decedent's property to the state in the absence of heirs
Building code
laws, ordinances and government regulations setting forth requirements for construction, maintenance, operation, occupancy, use or appearance of buildings.
inventory
listing and valuation of a decedent's assets by personal representative of the estate
invitee
one who has been invited on the property by the landowner; persons coming to a funeral home for the purpose of attending funerals, viewing remains, or engaging the funeral director's services are some examples.
trustee
one who holds title to property or another position of trust to a beneficiary
nuncupative will
oral will declared or dictated by testator during last illness before appropriate witnesses to dispose of personal property and afterwards reduced to writing (not valid in all states).
contract carrier
provides transportation for compensation only to those with whom it desires to do business (e.g., livery service)
Restricitve covenant
provision in a deed limiting the use of real property and prohibiting certain uses
Preparation room
that portion or location in a funeral establishment specifically designed and equipped for embalming and otherwise preparing dead human bodies.
testate
the condition of leaving a will at death
insolvent estate
the condition of the estate of a deceased person which is unable to pay the debts of the decedent and/or the estate
Inheritance
the estate which passes from the decedent to heirs
per capita
the method of dividing an estate by which an equal share is given to each of a number of persons, all of whom stand in equal degree of kindred to the decedent
per stirpes
the method of proportionality dividing an estate between beneficiaries according to their deceased ancestor's share
Intestate Succession
the method used to distribute property owned by a person who dies without a valid will
devisee
the person who receives a devise
Probate
the process of administering the estate and determining the validity of a will
estate
the property and debts of a deceased person, both real and/or personal
Probate Estate
the property and debts of a decedent that is subject to administration by the personal representative of an estate
disinterment
the removal of human remains from previous location of final disposition
Intestate
the state or condition of dying without having made a will
Volunteer Driver
those drivers not under the control of the funeral director
agent driver
those drivers under the directions and control of the funeral establishment which is liable for the driver's negligent actions
private carrier
those who transport only in particular instances and only for those they chose to contract with (funeral home vehicles and livery)
