BLAW - Keyterms Final_BS

8/9/2019 BLAW - Keyterms Final_BS

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Key Terms

An initial noticerequired byfederal law thata collection

agency mustsend a debtor,informing thedebtor that heor she has thirtydays tochallenge thedebt andrequestverification. Aset of rulespromulgated bythe FederalReserve Boardof Governors toimplement theprovisions ofthe Truth-in-Lending Act.Advertising thatmisleadsconsumers,either bymakingunjustifiedclaimsconcerning a

productsperformance orby omitting amaterial factconcerning theproductscomposition orperformance.New advertisingthat isundertakenpursuant to aFederal Trade

Commissionorder for thepurpose ofcorrectingearlier falseclaims thatwere madeabout aproduct. Anadministrativeor judicial order


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prohibiting aperson orbusiness firmfrom conductingactivities that anagency or courthas deemedillegal.

Advertising aproduct at avery attractiveprice (the bait)and then, oncethe consumer isin the store,saying that theadvertisedproduct is eithernot available oris of poorquality. The

customer isthen urged topurchase(switched to) amore expensive

item. Chapter

38

validationnoticeRegulation Zdeceptiveadvertising

counteradvertisingcease-and-desist orderbait-and-switchadvertisingLaws that allowbuyers a periodof time, such asthree days, inwhich to canceldoor-to-door

sales contracts.cooling-offlaws

Chapter 38


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An initial notice required by federal law that acollection agency must send a debtor, informingthe debtor that he or she has thirty days tochallenge the debt and request verification. A setof rules promulgated by the Federal ReserveBoard of Governors to implement the provisions ofthe Truth-in-Lending Act. Advertising that misleadsconsumers, either by making unjustified claimsconcerning a products performance or by omittinga material fact concerning the productscomposition or performance. New advertising thatis undertaken pursuant to a Federal TradeCommission order for the purpose of correctingearlier false claims that were made about aproduct. An administrative or judicial orderprohibiting a person or business firm fromconducting activities that an agency or court hasdeemed illegal. Advertising a product at a veryattractive price (the bait) and then, once theconsumer is in the store, saying that the advertised

product is either not available or is of poor quality.The customer is then urged to purchase(switched to) a more expensive item.

validation noticeRegulation Zdeceptive advertisingcounteradvertisingcease-and-desist order

cooling-off laws

Laws that allow buyers a period of time, such as three days, in which to cancel door-to-door sales contracts.bait-and-switch advertising

Chapter 40authorization card A card signed by an employee that gives a union permission to act on his or her behalf in negotiacease-and-desist orderAn administrative or judicial order prohibiting a person or business firm from conducting activclosed shop A firm that requires union membership by its workers as a condition of employment. The closed shop wcollective bargaining The process by which labor and management negotiate the terms and conditions of employmeemployment at will A common law doctrine under which either party may terminate an employment relationship at a

hot-cargo agreement An agreement in which employers voluntarily agree with unions not to handle, use, or deal in oI-551 Alien Registration Receipt Commonly referred to as a green card, the I-551 Alien Registration Receipt is proI-9 verification All employers must verify the employment eligibility and identity of any worker hired in the United Statminimum wage The lowest wage, either by government regulation or union contract, that an employer may pay an horight-to-work law A state law providing that employees may not be required to join a union as a condition of retainingsecondary boycott A unions refusal to work for, purchase from, or handle the products of a secondary employer, wistrike An action undertaken by unionized workers when collective bargaining fails. The workers leave their jobs, refusunion shop A firm that requires all workers, once employed, to become union members within a specified period of tivesting The creation of an absolute or unconditional right or power. The creation of an absolute or unconditional rightwhistleblowing An employees disclosure to government authorities, upper-level managers, or the press that the emworkers compensation laws State statutes establishing an administrative procedure for compensating workers inju
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wrongful discharge An employers termination of an employees employment in violation of the law. An employers t

A significantchange inemploymentstatus, such as achange broughtabout by firing orfailing to promotean employee,reassigning theemployee to aposition withsignificantlydifferentresponsibilities,or effecting asignificantchange inemploymentbenefits. In the

employmentcontext, thedemanding ofsexual favors inreturn for jobpromotions orother benefits, orlanguage orconduct that is sosexually offensivethat it creates ahostile workingenvironment. In

regard toemploymentrelationships, asystem in whichthose who haveworked longestfor the employerare first in line forpromotions,salary increases,and otherbenefits. Theyare also the lastto be laid off if theworkforce mustbe reduced. Agroup of personsprotected byspecific lawsbecause of thegroups definingcharacteristics.Under lawsprohibiting


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employmentdiscrimination,thesecharacteristicsinclude race,color, religion,national origin,gender, age, and

disability.Treatingemployees or jobapplicantsunequally on thebasis of race,color, nationalorigin, religion,gender, age, ordisability;prohibited byfederal statutes.A form of

employmentdiscriminationthat results whenan employerintentionallydiscriminatesagainstemployees whoare members ofprotectedclasses. A form ofemploymentdiscrimination

that results fromcertain employerpractices orprocedures that,although notdiscriminatory ontheir face, have adiscriminatoryeffect. Atermination ofemploymentbrought about bymaking theemployees

workingconditions sointolerable thatthe employeereasonably feelscompelled toleave. A defenseto allegations ofemploymentdiscrimination inwhich the


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employerdemonstratesthat anemploymentpractice thatdiscriminatesagainst membersof a protected

class is related tojob performance.Identifiablecharacteristicsreasonablynecessary to thenormal operationof a particularbusiness. Thesecharacteristicscan includegender, nationalorigin, and

religion, but notrace. Job-hiringpolicies that givespecialconsideration tomembers ofprotected classesin an effort toovercomepresent effects ofpastdiscrimination.

Chapter 41

tangibleemploymentactionsexualharassmentseniority systemprotected classemploymentdiscriminationdisparate-treatmentdiscrimination

disparate-impactdiscriminationconstructivedischargebusinessnecessitybona fideoccupationalqualification(BFOQ)


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affirmativeactionA case in which the plaintiff has produced sufficient evidence of his or her claim that the case can go to a jury; a casewhich the evidence compels a decision for the plaintiff if the defendant produces no affirmative defense or evidence todisprove the plaintiffs assertion.

prima facie case

Co-ownership

of property inwhich eachparty owns anundividedinterest thatpasses to heror his heirs atdeath. The jointownership ofproperty by ahusband andwife. Neitherparty can

transfer her orhis interest inthe propertywithout theconsent of theother. Land andeverythingattached to it,such as treesand buildings.Legallyprotected rightsand interests in

anything withanascertainablevalue that issubject toownership.Property that ismovable; anyproperty that isnot realproperty.


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Property withwhich theowner hasvoluntarilyparted and thencannot find orrecover.Property with

which theowner hasinvoluntarilyparted and thencannot find orrecover. The

joint ownershipof property bytwo or more co-owners inwhich each co-owner owns anundivided

portion of theproperty. Onthe death ofone of the jointtenants, his orher interestautomaticallypasses to thesurviving jointtenant(s). A giftmade duringones lifetimeand not in

contemplationof imminentdeath, incontrast to agift causamortis. A giftmade incontemplationof death. If thedonor does notdie of thatailment, the giftis revoked. Anyvoluntary

transfer ofproperty madewithoutconsideration,past or present.An absoluteform of propertyownershipentitling theproperty ownerto use,


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possess, ordispose of theproperty as heor she choosesduring his orher lifetime. Ondeath, theinterest in the

propertydescends to theowners heirs.A statutedefining findersrights inproperty whenthe true ownersare unknown.Ownershiprights inproperty,including the

right to possessand control theproperty. An actequivalent tothe actual,physicaldelivery ofproperty thatcannot bephysicallydeliveredbecause ofdifficulty or

impossibility.For example,the transfer of akey to a safeconstructivelydelivers thecontents of thesafe. Themixing togetherof goodsbelonging totwo or moreowners so thatthe separately

owned goodscannot beidentified. Jointownership. Aform ofconcurrentownership ofproperty inwhich eachspousetechnically


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owns anundivided one-half interest inpropertyacquired duringthe marriage.All forms ofpersonal

property. Onewho entrustsgoods to abailee. Asituation inwhich thepersonalproperty of oneperson (abailor) isentrusted toanother (abailee), who is

obligated toreturn thebailed propertyto the bailor ordispose of it asdirected. Oneto whom goodsare entrustedby a bailor.Occurs whenan individualadds value topersonal

property by theuse of eitherlabor ormaterials. Insomesituations, aperson mayacquireownershiprights inanotherspropertythroughaccession.

Chapter 43

tenancy incommontenancy by theentiretyreal propertypropertypersonalproperty


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mislaidpropertylost property

joint tenancygift inter vivosgift causamortisgift

fee simpleestray statutedominionconstructivedeliveryconfusionconcurrentownershipcommunitypropertychattelbailorbailment

baileeaccessionProperty with which the owner has voluntarily parted, with no intention of recovering it.abandoned property

Chapter 45

inter vivos trust A trust created by the grantor (settlor) and effective during the grantors lifetime; a trust not establishper capita A Latin term meaning per person. In the law governing estate distribution, a method of distributingper stirpes A Latin term meaning by the roots. In estate law, a method of distributing an intestates estate so t

mother or father) would have been entitled.


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administrator One who is appointed by a court to handle the probate (disposition) of a persons estate if that persobequest A gift of personal property by will (from the verb to bequeath).binder A written, temporary insurance policy.charitable trust A trust in which the property held by the trustee must be used for a charitable purpose, such as the codicil A written supplement or modification to a will. A codicil must be executed with the same formalities constructivetrust

An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully hrightfully own the property.

devise As a noun, a gift of real property by will; as a verb, to make a gift of real property by will.

devisee One designated in a will to receive a gift of real property.executor A person appointed by a testator in a will to see that her or his will is administered appropriately.holographic will A will written entirely in the signers handwriting and usually not witnessed.insurableinterest

An interest either in a persons life or well-being or in property that is sufficiently substantial that insu(betting) contract.

insurance A contract in which, for a stipulated consideration, one party agrees to compensate the other for losintestacy laws State statutes that specify how property will be distributed when a person dies intestate (without a vintestate As a noun, one who has died without having created a valid will; as an adjective, the state of havinglegacy A gift of personal property under a will.legatee One designated in a will to receive a gift of personal property.nuncupative willAn oral will (often called a deathbed will) made before witnesses; usually limited to transfers of perspolicy In insurance law, a contract between the insurer and the insured in which, for a stipulated considerapremium In insurance law, the price paid by the insured for insurance protection for a specified period of time

probate The process of proving and validating a will and settling all matters pertaining to an estate.resulting trust An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legarisk A prediction concerning potential loss based on known and unknown factors.riskmanagement

Planning that is undertaken to protect ones interest should some event threaten to undermine its secompany.

spendthrift trust A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Oattaching assets of the trust.

testamentarytrust

A trust that is created by will and therefore does not take effect until the death of the testator.

testate Having left a will at death.testator One who makes and executes a will.Totten trust A trust created by the deposit of a persons own funds in his or her own name as a trustee for anoth

act or declaration.

trust An arrangement in which title to property is held by one person (a trustee) for the benefit of anotherunderwriter In insurance law, the insurer, or the one assuming a risk in return for the payment of a premium.will An instrument directing what is to be done with the testators property on his or her death, made by will substitutes Various documents that attempt to dispose of an estate in the same or similar manner as a will, suc

Nonverbalexpressions ofbeliefs. Symbolicspeech, whichincludes gestures,movements, andarticles ofclothing, is givensubstantialprotection by thecourts. Theprovision inArticle VI of theConstitution thatprovides that theConstitution,laws, and treatiesof the UnitedStates are the


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supreme Law ofthe Land. Underthis clause, stateand local lawsthat directlyconflict withfederal law will berendered invalid.

An order grantedby a publicauthority, such asa judge, thatauthorizes lawenforcementpersonnel tosearch aparticular premiseor property. Adoctrine underwhich certainfederal laws

preempt, or takeprecedence over,conflicting state orlocal laws.Powerspossessed by thestates as part oftheir inherentsovereignty.These powersmay be exercisedto protect orpromote the

public order,health, safety,morals, andgeneral welfare.The provision inthe FirstAmendment tothe Constitutionthat prohibits thegovernment frominterfering withpeoples religiouspractices or formsof worship. A

computerprogram that isdesigned to blockaccess to certainWeb sites basedon their content.The softwareblocks theretrieval of a sitewhose URL orkey words are on


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a list within theprogram. Asystem ofgovernment inwhich the statesform a union andthe sovereignpower is divided

between thecentralgovernment andthe memberstates. Theprovision in theFirst Amendmentto the Constitutionthat prohibits thegovernment fromestablishing anystate-sponsoredreligion or

enacting any lawthat promotesreligion or favorsone religion overanother. Theprovision in theFourteenthAmendment tothe Constitutionthat guaranteesthat no state willdeny to anyperson within its

jurisdiction theequal protectionof the laws. Thisclause mandatesthat the stategovernmentsmust treatsimilarly situatedindividuals in asimilar manner.The provisions inthe Fifth andFourteenthAmendments to

the Constitutionthat guaranteethat no personshall be deprivedof life, liberty, orproperty withoutdue process oflaw. Similarclauses are foundin most stateconstitutions. The


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provision inArticle I, Section8, of the U.S.Constitution thatgives Congressthe power toregulate interstatecommerce. The

principle underwhich the powersof the nationalgovernment aredivided amongthree separatebranchestheexecutive,legislative, and

judicial brancheseach of whichexercises a checkon the actions of

the others.Chapter 2

symbolic speechsupremacyclausesearch warrantpreemptionpolice powersfree exerciseclausefiltering softwarefederal form of

governmentestablishmentclauseequal protectionclausedue processclausecommerceclausechecks andbalancesThe first ten amendments to the U.S. Constitution.Bill of Rights


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Chapter 4

res ipsa loquitur A doctrine under which negligence may be inferred simply because an event occurred, if it is tactionable Capable of serving as the basis of a lawsuit. An actionable claim can be pursued in a lawsuit actual malice The deliberate intent to cause harm, which exists when a person makes a statement either kn

figure normally must be made with actual malice for the plaintiff to recover damages.appropriation In tort law, the use by one person of another persons name, likeness, or other identifying chaassault Any word or action intended to make another person fearful of immediate physical harm; a reaassumption of risk A doctrine under which a plaintiff may not recover for injuries or damage suffered from risks hbattery The unprivileged, intentional touching of another.business invitee A person, such as a customer or a client, who is invited onto business premises by the ownerbusiness tort Wrongful interference with anothers business rights.causation in fact An act or omission without which an event would not have occurred.comparativenegligence

A rule followed by most states in tort cases that reduces the plaintiffs recovery in proportion to

compensatory

damages A monetary award equivalent to the actual value of injuries or damage sustained by the aggriecontributorynegligence

A rule in tort law that completely bars the plaintiff from recovering any damages if the damage

conversion Wrongfully taking or retaining possession of an individuals personal property and placing it incyber tort A tort committed in cyberspace.damages Money sought as a remedy for a breach of contract or a tortious action.defamation Anything published or publicly spoken that causes injury to anothers good name, reputation, defense A reason offered and alleged by a defendant in an action or suit as to why the plaintiff should disparagement ofproperty

An economically injurious falsehood made about anothers product or property; a general term

dram shop act A state statute that imposes liability on the owners of bars and taverns, as well as those who sof alcoholic drinks contributed to the intoxication.

duty of care The duty of all persons, as established by tort law, to exercise a reasonable amount of care in

constitutes the tort of negligence.fraudulentmisrepresentation

Any misrepresentation, either by misstatement or by omission of a material fact, knowingly ma

Good Samaritanstatute

A state statute stipulating that persons who provide emergency services to, or rescue, someo

intentional tort A wrongful act knowingly committed.libel Defamation in writing or other form having the quality of permanence (such as a digital recordmalpractice Professional misconduct or unreasonable lack of skill. The failure of a professional to use the

claims to possess, resulting in injury, loss, or damage to those relying on the professional.negligence The failure to exercise the standard of care that a reasonable person would exercise in similanegligenceper se An action or failure to act in violation of a statutory requirement.predatory behavior Business behavior that is undertaken with the intention of unlawfully driving competitors out ofprivilege A legal right, exemption, or immunity granted to a person or a class of persons. In the context

statements were malicious.proximate cause Legal cause; exists when the connection between an act and an injury is strong enough to juspuffery A salespersons often exaggerated claims concerning the quality of property offered for sale. punitive damages Monetary damages that may be awarded to a plaintiff to punish the defendant and deter futurreasonable personstandard

The standard of behavior expected of a hypothetical reasonable person; the standard agains

slander Defamation in oral form.slander of quality The publication of false information about anothers product, alleging that it is not what its sellslander of title The publication of a statement that denies or casts doubt on anothers legal ownership of any spam Bulk, unsolicited (junk) e-mail.strict liability Liability regardless of fault. In tort law, strict liability is imposed on a manufacturer or seller tha


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tort A civil wrong not arising from a breach of contract; a breach of a legal duty that proximately catortfeasor One who commits a tort.trade libel The publication of false information about anothers product, alleging that it is not what its selltrespass to land The entry onto, above, or below the surface of land owned by another without the owners pertrespass to personalproperty

The unlawful taking or harming of anothers personal property; interference with anothers righ

Chapter 18

course ofdealing

Prior conduct between the parties to a contract that establishes a common basis for their understand

course ofperformance

The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the

firm offer An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated periodmerchant must be in writing and must be signed by the offeror.

intangibleproperty

Property that cannot be seen or touched but exists only conceptually, such as corporate stocks and

lease Under Article 2A of the UCC, a transfer of the right to possess and use goods for a period of time in leaseagreement

In regard to the lease of goods, an agreement in which one person (the lessor) agrees to transfer th

lessee A person who acquires the right to the possession and use of anothers goods in exchange for rentalessor A person who transfers the right to the possession and use of goods to another in exchange for rent

merchant A person who is engaged in the purchase and sale of goods. Under the UCC, a person who deals inthe practices or goods being purchased or sold [UCC 2104].

output contract An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amountpredominant-factor test

A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of

requirementscontract

An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated

sale The passing of title to property from the seller to the buyer for a price.sales contract A contract for the sale of goods under which the ownership of goods is transferred from a seller to aseasonably Within a specified time period or, if no period is specified, within a reasonable time.tangibleproperty

Property that has physical existence and can be distinguished by the senses of touch or sight. A car

usage of trade Any practice or method of dealing having such regularity of observance in a place, vocation, or trade

Chapter 19

bailee One to whom goods are entrusted by a bailor.consignment A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignecure The right of a party who tenders nonconforming performance to correct that performance within the cdestinationcontract

A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrgoods until they are tendered at the destination specified in the contract.

document oftitle

A paper exchanged in the regular course of business that evidences the right to possession of goods

entrustmentrule

Under the Uniform Commercial Code Section 2403(2), a rule stating that if goods are entrusted to abuyer in the ordinary course of business.

fungible goods Goods that are alike by physical nature, by agreement, or by trade usage (for example, wheat, oil, anrisk can pass without actually separating the goods being sold from the mass of fungible goods.

good faithpurchaser

A purchaser who buys without notice of any circumstance that would cause a person of ordinary prud

identification In a sale of goods, the express designation of the goods provided for in the contract.insolvent Under the UCC, a term describing a person who ceases to pay his [or her] debts in the ordinary cou

law [UCC 1201(23)].insurableinterest

In regard to the sale or lease of goods, a property interest in the goods that is sufficiently substantial well-being that is sufficiently substantial to justify insuring against injury to (or death of) the person.

sale onapproval

A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes a

sale or return A type of conditional sale in which title and possession pass from the seller to the buyer, but the buyeshipment A contract for the sale of goods in which the seller is required or authorized to ship the goods by carr


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contract

Under theUniformCommercialCode, asellers orlessors act ofplacingconforminggoods at thedisposal ofthe buyer orlessee andgiving thebuyer orlessorwhatevernotification isreasonablynecessary to

enable thebuyer orlessee to takedelivery Anaction torecoveridentifiedgoods in thehands of aparty who iswrongfullywithholdingthem from the

other party.Under theUCC, thisremedy isusuallyavailable onlyif the buyer orlessee isunable tocover. Underthe UCC, acontract thatrequires orauthorizesdelivery in twoor moreseparate lotsto beaccepted andpaid forseparately. Allcosts resultingfrom a breachof contract,


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including allreasonableexpensesincurredbecause ofthe breach.Under theUCC, a

remedy thatallows thebuyer orlessee, on thesellers orlessorsbreach, topurchasegoods fromanother selleror lessor andsubstitutethem for the

goods dueunder thecontract. If thecost of coverexceeds thecost of thecontractgoods, thebuyer orlessee canrecover thedifference,plus incidental

andconsequentialdamages.

Chapter 20

tender ofdeliveryreplevininstallmentcontractincidentaldamagescover

Goods that conform to contract specifications.conforming goods

Chapter 22


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accelerationclause

A clause that allows a payee or other holder of a time instrument to demand payment of the entire am

acceptance In contract law, a voluntary act by the offeree that shows assent, or agreement, to the terms of an offpresented.

acceptor drawee that is legally obligated to pay an instrument when it is presented later for payment.allonge A piece of paper firmly attached to a negotiable instrument, on which transferees can make indorsembearer A person in possession of an instrument payable to bearer or indorsed in blank.bearer

instrument Any instrument that is not payable to a specific person, including instruments payable to the bearer oblankindorsement

An indorsement that specifies no particular indorsee and can consist of a mere signature. An order in

certificate ofdeposit (CD)

A note issued by a bank in which the bank acknowledges the receipt of funds from a party and prom

check A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount odraft Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money, usually to drawee The party that is ordered to pay a draft or check. With a check, a bank or a financial institution is alwadrawer The party that initiates a draft (such as a check), thereby ordering the drawee to pay.extensionclause

A clause in a time instrument that allows the instruments date of maturity to be extended into the futu

holder Any person in possession of an instrument drawn, issued, or indorsed to him or her, to his or her ordindorsee The person to whom a negotiable instrument is transferred by indorsement.

indorsement A signature placed on an instrument for the purpose of transferring ones ownership rights in the instindorser A person who transfers an instrument by signing (indorsing) it and delivering it to another person.maker One who promises to pay a fixed amount of money to the holder of a promissory note or a certificatenegotiableinstrument

A signed writing (record) that contains an unconditional promise or order to pay an exact sum on dem

negotiation A process in which parties attempt to settle their dispute informally, with or without attorneys to repreto whom the instrument is transferred) becomes a holder.

orderinstrument

A negotiable instrument that is payable to the order of an identified person or to an identified perso

payee A person to whom an instrument is made payable.presentment The act of presenting an instrument to the party liable on the instrument to collect payment. Presentmpromissorynote

A written promise made by one person (the maker) to pay a fixed amount of money to another perso

qualifiedindorsement An indorsement on a negotiable instrument in which the indorser disclaims any contract liability on th

restrictiveindorsement

Any indorsement on a negotiable instrument that requires the indorsee to comply with certain instruc

signature Under the UCC, any symbol executed or adopted by a party with a present intention to authenticatespecialindorsement

An indorsement on an instrument that indicates the specific person to whom the indorser intends to m

trustindorsement

An indorsement for the benefit of the indorser or a third person; also known as an agency indorseme

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accommodationparty

A person who signs an instrument for the purpose of lending her or his name as credit to another

agent A person who agrees to represent or act for another, called the principal.dishonor A negotiable instrument is dishonored when payment or acceptance of the instrument, whichevefictitious payee A payee on a negotiable instrument whom the maker or drawer does not intend to have an intereholder in duecourse (HDC)

A holder who acquires a negotiable instrument for value; in good faith; and without notice that theinstrument contains unauthorized signatures, has been altered, or is so irregular or incomplete as

imposter One who, by use of the mails, Internet, telephone, or personal appearance, induces a maker or dindorsements under Article 3 of the UCC.

personal defenses Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument butpresentmentwarranties

Implied warranties, made by any person who presents an instrument for payment or acceptance,acceptance on behalf of a person who is entitled to enforce the instrument, (2) the instrument hainstrument is unauthorized.


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principal In agency law, a person who agrees to have another, called the agent, act on her or his behalf.shelter principle The principle that the holder of a negotiable instrument who cannot qualify as a holder in due coutransfer warranties Implied warranties, made by any person who transfers an instrument for consideration to subseq

all signatures are authentic and authorized; (3) the instrument has not been altered; (4) the instruknowledge of any insolvency proceedings against the maker, the acceptor, or the drawer of the in

universal defensesDefenses that are valid against all holders of a negotiable instrument, including holders in due co

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BLAW - Keyterms Final_BS