Business Law GLOSSARY
Glossary of Business Law Terms
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Back Pay: A type of damages award in an employment lawsuit
that represents the amount of money the employee would have earned
if the employee was not fired or denied a promotion illegally.
Bait and Switch: A dishonest sales practice in which a
business advertises a bargain price for an item in order to draw
customers into the store and then tells the prospective buyer that
the advertised item is of poor quality or no longer available and
attempts to sell them something else that is higher priced.
Balance Sheet: The statement of the assets and the
liabilities (amounts owed) of a business at a particular time
usually prepared each month, quarter of a year, annually, or upon
sale of the business.
Bench Trial: A trial without a jury. The judge rules on
facts and evidence presented to him.
Blue Sky Laws: The securities laws of individual states,
collectively. These laws seek to protect people from investing in
sham companies-companies that offer nothing more than "blue sky."
Board of Directors: The directors of a corporation,
collectively. The directors of a corporation are its governing
board. Elected by shareholders, they vote on major corporate matters
such as the issuing of shares of stock, election of officers, and
approval of mergers and acquisitions.
Bond: An interest-bearing instrument issued by a
corporation or other entity that serves as evidence of a debt or
Book Account: An account of a customer kept in a business
ledger of debits and credits (charges and payments), which shows the
amount due at any given time. This can provide a clear basis for
suing for a debt.
Bucket Shop: An unofficial and usually illegal betting
operation in which the prices of stocks and commodities are posted
and the customers bet on the rise and fall of prices without
actually buying stock, commodities, or commodity futures.
Burden of Proof: The obligation of one party in a suit to
prove all the requirements necessary to show entitlement to
recovery. If the burden is not met, the party with the burden will
lose the issue or the case.
Business Judgment Rule: The rule that shields directors
from liability for mismanagement of the corporations that they
Business Law: Business law is the general field of law
relating to business organizations, business structures, and
business transactions. Also included in the business law field are
issues related to real estate, tax, and the environment. Business
law courses are available for non-lawyers at the college level. For
law students, business law courses are very detailed and will allow
the attorney to give competent business law advice as to what kind
of business organization might be appropriate for a client and what
course of action may be best in certain business transactions.
Bylaws: The internal operating rules of a corporation
usually set out in a five to twenty page document. Bylaws govern
such matters as holding meetings, voting, quorums, elections, and
the powers of directors and officers.