The Law Dictionary for Everyone
The combination, or “merger,” of two companies that are involved in totally unrelated industries, business activities, or geographic areas, is referred to as a “conglomerate merger.” A popular method of extending a range of products, or growing corporate territory in the 1960s and 1970s, conglomerate mergers rarely result in immediate financial benefits for either company, and so are seldom seen […]
Read moreCumulative voting is a system often used in corporations to provide minority shareholders with a vote in the matters at hand. This voting system allows shareholders to cast all of their votes to a single candidate, or split the votes up between different candidates. This enables the shareholders to have a voice on specific issues, including the election of board […]
Read moreThe concept of Bona Fide Occupational Qualifications (“BFOQ”) allows employers to hire individuals based on their age, sex, race, national origin, or religion, if these specific qualifications are considered essential to the job, or considered vital to the business’ operation. Hiring employees with BFOQs may be considered a valid defense to Title VII of the Civil Rights Act of 1964, […]
Read moreApparent authority arises when someone reasonably believes a person has the authority to act on behalf of another person or entity to engage in business transactions or enter into contracts. Typically, this belief stems from the person’s actions leading to the belief that they have been given authority to act. The issue of apparent authority is most often relevant in […]
Read moreActual authority allows a third party to act on behalf of, and engage in decision-making for a company or agency. Any authorization, decision, or act taken by the third party acting with actual authority is legally binding and enforceable within the courts. To explore this concept, consider the following actual authority definition. Definition of Actual Authority Noun Specific powers granted […]
Read moreA contract of adhesion refers to a contract drafted by one party in a position of power, leaving the weaker party to “take it or leave it.” Adhesion contracts are generally created by businesses providing goods or services in which the customer must either sign the boilerplate contract or seek services elsewhere. To explore this concept, consider the following adhesion […]
Read moreWhen one person or entity agrees to act on behalf of another person or entity in matters of importance, such as legal, financial, and authority, he or she is considered a “fiduciary.” The client, trustor, or beneficiary, has the right to expect the fiduciary to put forth his best effort, using all of his expertise, skill, and care in acting […]
Read moreEmbezzlement is a crime that takes place when a person purposely withholds or uses assets and monies for a purpose other than for what it is intended. Also referred to as “financial fraud” or “larceny,” embezzlement is typically committed by an employee who is in charge of an agency or company’s finances, or a person who has responsibilities pertaining to […]
Read moreAffirmative action refers to a set of procedures implemented for the purpose of eliminating discrimination in educational and employment opportunities. Amounting to “positive discrimination,” the policy creates favor toward members of disadvantaged groups believed to have suffered discrimination in society. Affirmative action is the result of President John F. Kennedy’s 1961 executive order requiring government employers and contractors to “take […]
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