Business Law GLOSSARY
Glossary of Business Law Terms
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D.B.A.: Short for "doing business as," when a person or
entity uses a business name instead of his/her/its own.
Damages: The sum of money awarded to the injured party in
a personal injury lawsuit.
Deadlock: The circumstance that arises when either the
board of directors or shareholders are evenly split on a vote and
cannot take action. Deadlock can lead to judicial resolution of the
Dealer: Anyone who buys goods or property for the purpose
of selling as a business.
Debenture: A form of bond certificate issued by a
corporation to show funds invested, repayment of which is guaranteed
by the overall capital value of the company under certain specific
terms. Thus, it is more secure than shares of stock or general
Debt Financing: A method of financing where the company
receives a loan and gives its promise to repay the loan.
Default Judgment: A judgment issued when the defendant
offers no defense by not responding to the complaint. A judge may
issue a judgment without the necessity of a trial.
Defendant: The person against whom a claim is brought.
Deponent: The person who testifies at a deposition.
Deposition: A pretrial discovery device in which one party
verbally answers questions from the other party.
Dilution: The effect of reducing an existing shareholder's
interest in a corporation when new shares are issued.
Director: A member of the governing board of a corporation
or association elected or re-elected at annual meetings of the
shareholders or members. As a group the directors are responsible
for the policy making,
Discovery: Methods and procedures by which information is
made available to each party prior to trial. Discovery may include
depositions, interrogations, requests for production of documents,
and demands for independent medical examinations.
Dissolution of Corporation: Termination of a corporation
Dissolution: The process of shutting down a corporation,
settling its affairs, and ending its life.
Distribution: A transfer of profits or property by a
corporation to its shareholders.
Dividend: A share of profits issued to the holders of
shares in a corporation. Dividends can be paid in shares of stock or
other property such as shares in a subsidiary or parent company.
Dividend Priority: Special rights enjoyed by holders of a
secondary class of stock that entitle holders to receive dividends
before other shareholders.
Docket: A summary system kept by the clerk's office which
contains a record of all pleadings, court orders and other important
activities in a case.
Doing Business As (DBA): A company whose operating name
differs from its legal name is said to be "doing business as" the
operating name. Some states require DBA or "fictitious business
name" filings to be made for the protection of consumers conducting
business with the entity.
Doing Business: Carrying on the normal activities of a
corporation on a regular basis or with substantial contacts-not just
an occasional shipment.
Domestic Corporation: In general, a corporation whose
articles of incorporation are filed in the state in which it
operates and maintains its principal office.
Dram Shop Rule: A statute (Dram Shop Act) or case law in
38 states which makes a business which sells alcoholic drinks or a
host who serves liquor to a drinker who is obviously intoxicated or
close to it, a crime.