Term
| Implied warranty of fitness for a particular purpose |
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Definition
| An implied warranty that applies when the buyer relies on the seller's expertise in selecting a particular product for a particular purpose. |
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Term
| Implied warranty of title |
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Definition
| An implied promise in a contract for the sale of goods that the seller has legal ownership of goods and has no knowledge of any security interest or other lien on the goods other than those disclosed to the buyer. |
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Term
| FOB (free on board) place of shipment |
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Definition
| A shipping condition under which the seller delivers the goods to the carrier at the seller's risk and expense and the ownership then shifts to the buyer. |
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Term
| FOB (free on board) place of destination |
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Definition
| A shipping condition under which ownership passes from the seller to the buyer when the carrier delivers the goods to the buyer's premises. |
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Term
| FAS (free alongside) vessel |
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Definition
| A shipping condition under which ownership passes from the seller to the buyer when the seller delivers the goods alongside a vessel for loading onto that vessel. |
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Term
| FOB (free on board) vessel |
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Definition
| A shipping condition under which goods are loaded on board the vessel at the seller's risk and expense and then ownership passes to the buyer. |
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Term
| CIF (cost-insurance-freight) |
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Definition
| A shipping condition under which the seller is obligated to pay for the insurance and freight charges for delivery to the buyer. |
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Term
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Definition
| A shipping condition under which the seller is obligated to pay for the freight charges but not for the insurance for delivery to the buyer. |
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Term
| COD (collect on delivery) |
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Definition
| A shipping condition under which the buyer pays when the goods are delivered and has no right to inspect the goods as a condition to acceptance and a payment. |
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Term
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Definition
| A type of commercial paper containing an unconditional order by the drawer (person making out the draft), requiring the drawee, usually a bank, to pay a certain sum to the payee or to the bearer. |
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Term
| Certificate of deposit (CD) |
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Definition
| A type of commercial paper issued by a financial institution acknowledging receipt of money and promising to repay it, with interest, at a specific time. |
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Term
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Definition
| A type of commercial paper containing a written promise to pay money on demand or at a definite future time. |
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Term
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Definition
| A type of commericial paper that is a two-party draft, used when a seller wants cash immediately but when the buyer cannont provide it until the goods are resold. |
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Term
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Definition
| The absolute obligation to pay a negotiable instrument according to its terms. |
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Term
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Definition
| The obligation to pay a negotiable instrument only if someone else refuses to pay or to accept the instrument. |
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Term
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Definition
| A signature or the equivalent of a signature that specifies the person to whom a negotiable instrument is payable. |
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Term
| Blank, or general endorsement |
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Definition
| A signature or the equivalent of a signature on a negotiable instrument that names no specific payee, making the instrument payable to the bearer. |
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Term
| Restrictive, or collection endorsement |
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Definition
| A signature or the equivalent of a signature that includes language placing additional limits on further negotiation of a negotiable instrument. |
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Term
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Definition
| A signature or the equivalent of a signature that passes title to a negotiable instrument but limits the endorser's liability to later holders if the instrument is later dishonored. |
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Term
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Definition
| A signature or the equivalent of a signature that places no limits on the endorser's liability on the paper. |
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Term
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Definition
| The person to whom a negotiable instrument has been issued or endorssed and who possesses it for value, in good faith and without notice that it may not be valid, can be claimed by another, is overdue, or was previously dishonored. |
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Term
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Definition
| A claim to an instrument by any person and any defense that would be effective in a simple contract transaction. |
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Term
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Definition
| A defense of an obligor of a negotiable instrument that may be asserted even against a holder in due course. |
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Term
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Definition
| A check guaranteed by a bank to be covered by sufficient funds on deposit. |
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Term
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Definition
| A check drawn by a bank on its own funds. |
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Term
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Definition
| An interest in property that exists by contract as security for payment or performance of an obligation. |
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Term
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Definition
| A business arrangement in which a buyer or borrower gives collateral to the seller or lender to guarantee payment of an obligation. |
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Term
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Definition
| The seller or lender in a secured transaction who has a security interest in property or goods sold. |
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Term
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Definition
| The goods covered by a security interest in a secured transaction. |
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Term
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Definition
| A security device by which a borrower guarantees payment by delivering collateral to the lender to hold as security for the debt. |
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Term
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Definition
| The party in a secured transaction who agrees to be responsible for the performance of another party's contract to repay money borrowed or to perform a certain duty. |
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Term
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Definition
| The party in a surety relationship whose performance is required and is guaranteed by the surety. |
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Term
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Definition
| The party in a surety to whom the surety and principal are liable. |
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Term
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Definition
| A warranty that limits the consumer's rights in some respects. |
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Term
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Definition
| A warranty that promises to remedy a product defect within a reasonable time and without charge and to refund the purchase price or to replace the product if the repairs fail ("lemon provision") |
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Term
| Electronic funds transfer (EFT) system |
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Definition
| A system that moves funds from one institution to another by means of electronic signals rather than the physical exchange of money or checks. |
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Term
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Definition
| The body of federal law that allows debtors who are unable to pay their creditors to divide their assets among their creditors to discharge the debts. |
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Term
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Definition
| The last resort chapter of the federal Bankruptcy Act under which the bankrupt organization's nonexempt assets are distributed to its various creditors, and the balance of the debtor's obligations are forgiven or discharged. |
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Term
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Definition
| The general reorganization chapter of the federal Bankruptcy Act under which a bankrupt partnership or corporation can continue doing business but must set up a plan for paying a portion, or possibly all, of the creditors of the ongoing business. |
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Term
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Definition
| A chapter of the federal Bankruptcy Act giving farm operations, other than large corporate farms, the same reorganization opportunities available to corporations and partnerships under Chapter 11. |
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Term
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Definition
| A chapter of the federal Bankruptcy Act giving small business operators or wage earners the same reorganization opportunities available to corporations and partnerships under Chapter 11. |
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Term
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Definition
| A bankruptcy proceeding in which a bankrupt organization does not have enough assets to pay all creditors, and the creditors are prioritized and paid according to the types of their claims. |
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