Law and Ethics I & II Compiled Terms

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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)


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