Company, Associations and Commercial Law Dictionary This is a specialized sub-listing of our comprehensive Law Dictionary, where we've grouped terms relevant to this topic. If your term or phrase is not here, do a SEARCH using the search box above. Abuse of Dominant Position Intentional anti-competitive acts by persons substantially in control of a market, that has had, is having, or is likely to have the effect of preventing or lessening competition. Accardi Doctrine An agency must abide by its own regulations. Ad Hoc Latin: limited in time; to this point. Amalgamation The merging of two things together to form one, such as the amalgamation of different companies to form a single company. Anti-trust Prohibited trade, marketplace or merchant activities as defined in a relevant anti-trust or such other restraint of trade statute. Arm's Length A transaction or relationship where there is an absence of control the one over the other. Association A form of organizational structure which is institutionally operated on a cost recovery basis, for which incorporation is extended by the government or, in some jurisdictions, as an unincorporated association of individuals, for a set of purposes set out in statute such as religious, scientific, social, literary, educational, recreational or benevolent purposes, and generally operated as nearly as possible at cost. Auditor A private person who examine, inspects or verifies the accounts of another. Bank A corporation empowered to deal with cash, domestic and foreign, and to receive the deposits of money and to loan those monies to third-parties. Board of Directors The group of most senior managers, operators and administrators of a corporation or association. Call For Tenders A property owner's invitation, sometimes at large, sometimes to a select group, for bids to complete a particular project. Carry The observation or declaration by the chair of a meeting that a member’s motion has passed or attained the requisite majority vote, and is thus converted into a resolution of the whole meeting or organization. Cartel An agreement between two or more merchants to create or control a monopoly, to lessen or prevent competition. Check or Cheque A form of bill of exchange where the order to pay is given to a bank which is holding the payor’s money. Committee A term of parliamentary law which refers to a body of one or more persons appointed by a larger assembly or society, to consider, investigate and/or take action on certain specific matters. Commodity A fungible, tradeable thing, good, product, interest including money or negotiable instruments. Common Share The basic share in a corporation. Company A legal entity, allowed by legislation, which permits a group of people, as shareholders, to apply to the government for an independent organization to be created, which can then focus on pursuing set objectives, and empowered with legal rights which are usually only reserved for individuals, such as to sue and be sued, own property, hire employees or loan and borrow money. Competitive Injury A price difference designed to harm competition. Conflict of Interest A personal interest that conflicts with a public or fidiciary interest. Consolidation The union of two or more corporations into one corporate body after which the constituent corporations cease to exist. Corporate Secretary Officer of a corporation responsible for the official documents of the corporation such as the official seal, records of shares issued, and minutes of all board or committee meetings. Corporation A legal entity, created under the authority of a statute, which permits a group of people, as shareholders, to apply to the government for an independent organization to be created, which then pursues set objectives, and is empowered with legal rights usually only reserved for individuals, such as to sue and be sued, own property, hire employees or loan and borrow money. Custom The consensual regulation of human conduct and commerce by the community itself. Deceptive Trade Practice An intentional act or omission in the course of trade or commerce that has the tendency or capacity to mislead or create the likelihood of deception. Derivative Action A class action brought for a wrong done to a corporation. Director Senior manager(s) selected by shareholders to manage a corporation. Dividend A proportionate distribution of profits made in the form of a money payment to shareholders, by a for-profit corporation. Dividends are declared by a company's board of directors. Double Escrow The secret use of escrow funds with those of another escrow fund, for the purposes of financial gain by the holder of the escrow funds, and without the knowledge of the owners of the two funds. Dragnet Clause A clause in a credit agreement which purports to secure future liabilities. Drawee The bank which has the drawer's checking account from which a check is to be paid. Drawer The person who signs a check to his or her bank ordering the latter to pay the face amount of the check to the payee. Due Diligence Reasonable verifications and precautions taken to identify or prevent foreseeable risks. Duty of Care An obligation to conform to a certain standard of conduct for the protection of another against an unreasonable risk of harm. Exclusive Dealing An arrangement designed to throttle or control legitimate trade by the selection and exclusive use of a particular supplier's product. Fidelity Rebate Offering loyalty rebate program to select customers. Franchise A licensing contract in which a holder of certain legal rights gives another to sell or package those rights. Franchisee The person who receives, for consideration, the license to right to sell a product or service and to operate a business along the lines developed by the franchisor and using the franchisor's trade name or other designation. Franchisor The legal rights holder who licenses, in whole or in part, those legal rights to another pursuant to a franchise agreement. Functus Officio Latin: an officer or agency whose mandate has expired either because of the arrival of an expiry date or because an agency has accomplished the purpose for which it was created. Guarantor A person who pledges payment or performance of a contract of another, but separately, as part of an independently contract with the obligee of the original contract. Harassment Unsolicited words or conduct which tend to annoy, alarm or abuse another person. Insider Trading Participation by corporate officers, directors or employees in the trade of a stock based on confidential or privileged corporate information, knowing that information to be confidential, and seeking thereby to acquire profits or avoid losses on the stock market. Law Merchant International commercial law; the law as it relates to merchant Lay on the Table Also “to table”; a term of parliamentary law and procedure which refers to a motion in regards to another motion being actively debated, but intended to defer a final disposition of the pending motion. Lifting the Corporate Veil Disregarding the general rule a corporation is a legal entity distinct from its shareholders by regarding the company as a mere agent or puppet of a controlling shareholder or parent corporation. Liquidation The converting of the the assets of a person into cash. Meeting The coming together for the transaction of a lawful object of two or more persons. Merchant A person engaged in the making, buying or selling of goods or services. Merchantable Quality A product which is undamaged and usable and of sufficient quality to merit purchase at the requested price by a reasonable buyer. Merger The absorption of one thing or legal right into another. Misleading Advertising Materially false or misleading representations concerning a product or service. Money Laundering The conversion or transfer of money obtained by crime for the purposes of frustrating law enforcement. Monopoly A commercial advantage enjoyed by only one or a select few companies in which only those companies can trade in a certain area. Monopsony Market conditions in which there exists only one buyer for a commodity or service. Moratorium The temporary suspension of legal action against a person. Mortmain French: dead hand. Property taken out of circulation. Motion A proposal made to a Court or at a meeting and intended to be considered and decided upon. Nerve Center Test A judicial analysis used to determine a corporation's real place of business where activities are decentralized; the focus is locating where the corporation's overall policy originates. Nondisclosure Agreement A contract between the holder of confidential information and another person to whom that information is disclosed, prohibiting that other person from disclosing the confidential information to any other party. Officer A management-level employee of a corporation entrusted with discretion in the exercise of some portion of corporate powers. Oligopoly A market condition that results when there are but a few sellers Oppressive Harsh, dishonest or wrongful conduct and a visible departure from the standards of fair-dealing. Parliamentary Law Rules of deliberative bodies by which their procedure is regulated. Person An entity recognized by the law as separate and independent, with legal rights and existence including the ability to sue and be sued, to sign contracts, to receive gifts, to appear in court either by themselves or by lawyer and, generally, other powers incidental to the full expression of the entity in law. Piercing the Corporate Veil To hold a corporate entity liable for the acts of a separate, related entity. Place of Operations Test A judicial analysis used to determine a corporation's real place of business which prioritizes the venue of corporate activities. Point of Order A term of parliamentary law and procedure which refers to an interjection during a meeting by a member, who does not have the floor, to call the attention of the chair to an alleged violation or breach of the assembly’s or meeting’s rules of order. Predatory Pricing The pricing of products in an unfair manner with an object to eliminate or retard competition and thereby gain and exercise control over prices in the relevant market. Preferred Shares A share in a company that has some kind of special right or privilege attached to it, such as that it is distinguished from the company’s common shares. President The appointed or elected head of a group of individuals, such as of a company or of a state. Pro Socio Latin: on behalf of a partnership. Question of Privilege A term of parliamentary law and procedure which refers to an urgent motion made at a meeting which seeks an immediate ruling on an alleged violation of the rights or privileges of members as a whole, or in regards to a negative personal remark. Quorum The minimum number of voting members that must be in attendance at a meeting of an organization for that meeting to be regularly constituted. Ratification The act by a principal, after the agent has acted, confirming that what the agent may have done without authority, is binding on the principal. Rule in Foss v Harbottle A rule of corporations law: shareholders have no separate cause of action in law for any wrongs which may have been inflicted upon a corporation. Share A portion of a for-profit corporation bought by cash. Shareholder Persons who own a share(s) of a for-profit corporation. Shareholder agreement A contract between the shareholders of the company and the company itself, in which certain things which would otherwise be the purview of the board of directors, are predetermined. Sherman Antitrust Act American federal statutes that defines and prohibits contracts or conspiracies which are designed to restrain trade. Society A group of people formed as a separate organization and which has as a stated purpose some charitable or benevolent purpose either in regards to the public at-large or in regards to the common interests of the members, and which operates as nearly as possible at cost. Standard The technical or performance specifications in regards to a product. Standing Committee Committees which have a continued existence; that are not related to the accomplishment of a specific, once-only task as are ad hoc or special committees. Storm Warning Data available to an ordinary investor that would give rise to a suspicion of fraud. Subsidiary A corporation subordinate to a dominant company which is able, through share ownership, to exert influence or control over its affairs. Successor A person who takes over the rights of another. Tax A payment to a public authority, required by statute, for a public purpose. Tied Selling Where a supplier sells on condition that the buyer to the purchase of another associated or "tied" product. Vertical Restraint Special condition or term offered to select distributors by a supplier in order to manipulate trade. Find you are constantly looking up definitions? Try our search provider (works in most modern browsers) If you find an error or omission in Duhaime's Legal Dictionary, or if you have legal term suggestion, we'd love to hear from you!