business law

concealment

The act of intentionally not revealing information that should be disclosed and would otherwise affect the terms or creation of a contract.  A concealment can occur through either purposeful misrepresentation or withholding of material facts.  

Where the information could not have been known by the other party and it is known to be material by the concealing party, the concealment can give grounds for nullifying the contract.

 

company

 Any form of business organization, most commonly a corporation, partnership, association, or fund, which engages in commercial activity for profit.  A company can be its own legal entity with characteristics, liabilities and capacities distinct from those of its owners or members.  

 

Common stock

Definition

A class of stock or securities which represents equity ownership in a corporation.  Common stock typically comes with voting rights, permitting shareholders control over the company by electing a board of directors and voting on corporate matters. Common stock is last in priority, thus in the event of liquidation, holders of common stock must wait to be repaid until creditors and preferred shareholders are repaid first.

 

commission

 1) A fee or remuneration paid in return for services rendered.  Commission is often calculated as a percentage of the total transaction; commission can be separate and in addition to fixed wages, or it can be the sole form of compensation, known as straight commission.

 

commerce

In 15 U.S.C. §1127:

 1) The exchanging, buying, or selling of things having economic value between two or more entities, for example goods, services, and money.  Commerce is often done on a large scale, typically between individuals, businesses, or nations.  

 2) The Lanham Act (trademark) provides that a mark is all be deemed to be in "use in commerce"

   (1) on goods when: 

 

collusion

A collaborative agreement, usually secret, amongst rivals to prevent open competition through deceptive means in order to gain a market advantage.  The parties may collude by agreeing to fix prices, limit or restrict supply, share insider information, or divide the market.

 

Coinsurance

Definition

A risk-sharing agreement between the insurer and the insured under a particular insurance policy.  The insured agrees to cover a percentage of the losses up to a certain threshold level, rather than paying a fixed amount as with co-pay arrangements.

 

keywords: 

CIF

 A trade term for Cost, Insurance and Freight, whereby the seller's quoted price includes insurance and all other costs up to a designated port of destination.

 

churning

 An unethical business practice by some stock brokers where excessive trade is made in a client's account in order to generate more commission from the account.  Churning prohibited by many securities laws and is judicially actionable.

 

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