business law

Definition

Also called a quasi-corporation. See quasi-corporation.

Illustrative caselaw

See, e.g. Pleasant Tp. v. Aetna Life Ins. Co., 128 U.S. 67 (1891).

See also

• Municipal corporation

• Public corporation

   

Foreign direct investment: an overview

The International Monetary Fund (“IMF”) defines foreign direct investment (“FDI”) as a “cross-border investment” in which an investor that is “resident in one economy [has] control or a significant degree of influence on the management of an enterprise that is resident in another economy.” IMF, Balance of Payments and International Investment Position Manual 100 (6th ed. 2009).

Definition

A clause frequently included in bilateral investment treaties ("BITs") which provides that a host state shall treat foreign and domestic enterprises equally.

See also

• Most favored nation

• World Trade Organization: Trade without Discrimination

Definition

A Supreme Court case that adopted an expansive view of the scope of the Commerce Clause of the Constitution by holding that Congress had the power to regulate interstate commerce.

 A common law rule whereby taxpayers, when unable to produce records of actual expenditures, may rely on reasonable estimates provided there is some factual basis for it.

Definition

An agreement between an employer and employee in which the employee agrees not to join or remain a member of a labor or employer organization. Yellow dog contracts are generally illegal. 

Illustrative caselaw

See, e.g. Lincoln Federal Labor Union No. 19129 v. Northwestern Iron & Metal Co., 335 U.S. 525 (1949).

Definition

1) In business law, the relationship between companies in a distribution chain. For example, a manufacturer and a distributor are in vertical privity. Those in vertical privity are jointly liable for product defects in the vertical chain.

2) The relationship between a party to a restrictive covenant and a person who later acquires the property burdened by the covenant from the party. The purchaser is bound by the covenant if he or she had sufficient notice of it at the time of purchase.

Definition

A benefit conferred or a detriment incurred by a party in exchange for another's promise. Valuable consideration may be non-monetary as long as it is of some value to one or both parties. Also called good and valuable consideration and legal consideration.

Illustrative caselaw

See, e.g. Digital Equipment Corp. v. Desktop Direct, Inc., 511 U.S. 863 (1994).

See also

• Consideration

• Contract

Definition

A person who is neither a promisor nor promisee in a contractual agreement, but stands to benefit from the contract’s performance.

Definition

To cheat a person out of money or property through fraud or deceit.