The Principal-Agent Relationship: An Overview Who is a principal in law of agency? A principal in law of agency is the party who appoints an agent to represent them in dealings with third parties. The agent is then authorized to act on the principal’s behalf in accordance with the terms of the agency agreement. The … Read more
Tort Law: What It Is and How It Works Tort law is a branch of law that deals with civil wrongs and damages. It can be divided into three main categories: intentional torts, negligence, and strict liability. What is another word for tort? The word “tort” is derived from the Latin word for “wrong.” A … Read more
When two parties enter into a contract, they are each legally bound to uphold their end of the bargain. This is known as a “bilateral contract.” If either party fails to uphold their obligations under the contract, the other party may have legal recourse. There are three elements that must be present for a contract … Read more
The National Securities Markets Improvement Act (NSMIA) was enacted in 1996 and was designed to address a number of perceived problems in the national securities markets. NSMIA amended a number of federal securities laws, including the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment … Read more
Pro tanto is a Latin phrase meaning “for so much”. It is used in law to indicate that a debt, obligation or other liability has been partially discharged. For example, if a debt of $100 is partially paid off with a payment of $50, the debt is said to be discharged pro tanto. What is … Read more
Basel III is a global regulatory framework for banks that sets capital requirements and implements other measures to strengthen the banking sector. What is Basel 3 leverage ratio? Basel 3 is the third iteration of the Basel Accords, an international regulatory framework for banks. The Basel 3 leverage ratio is a key component of this … Read more
An exempt transaction is a transaction that is exempt from certain laws or regulations. Exempt transactions are typically exempt from securities laws, tax laws, or other laws or regulations. There are many different types of exempt transactions, and the laws and regulations that apply to each type of exempt transaction vary depending on the jurisdiction. … Read more
Who is Liable for What in Shipping when Using the Free on Board (FOB) Term? What are the four types of inventory? There are four types of inventory: 1. Raw materials 2. Work-in-progress (WIP) 3. Finished goods 4. Maintenance, repair and operations (MRO) 1. Raw materials are the unprocessed inputs used in the production of … Read more
Shadow Banking System: Definition and Examples. What is the shadow banking system ECON quizlet? The shadow banking system is a network of financial institutions and instruments that provides credit to businesses and consumers. This system exists outside of the traditional banking system and is not subject to the same regulations. The shadow banking system played … Read more
Exchange Control refers to a set of regulations that a government imposes to control the flow of foreign currency in and out of its borders. The main objectives of exchange control are to stabilize the domestic currency, promote economic growth, and prevent currency speculation. There are a variety of methods that a government can use … Read more
