What is Price Fixing? Price fixing refers to a written or verbal agreement among business rivals that increases, reduces, or stabilizes a commodity or service's price. According to the antitrust law, the company is expected to come up with its own prices. It includes other terms that do not involve any agreement with a competitor. Under specific sit...

What is a bailment? A bailment is a situation where the owner of personal property gives the property to another person to hold or to use in a specific manner. The owner of the property is called the bailor and the person receiving the property is called the bailee. A bailment can be express (pursuant to agreement by the bailor and bailee) or implie...

What is a Back-End Load? A back-end load is defined as a commission or sales fees that investors pay when they sell their investments. Back-end load is commonly associated annuities and mutual funds, an investor selling a mutual fund is required to pay a percentage of the value of the investment being sold as the back-end load. A back-end load is ot...

What is the Aggregate Amount of Offering? The primary distinguishing factor between available exemptions, both statutory and under Regulations A and D, regards the total value of the securities offered for sale. For example, a Rule 504 offering is limited to a total amount of $1 million dollars during any 12-month period. A rule 505 offering, on the...

What is the Alternative Minimum Cost Method? The form of measure used by a defined benefit pension plan, ensuring that it has enough funds for future payments to its participants is an alternative minimum cost method. The alternative minimum cost method is a system of funding pension plans that have been approved by ERISA (Employee Retirement Income...

What are the legal obligations regarding the terms of employment between an employer and employee? The terms of an employment relationship will either be determined by the employment agreement between employer and employee or pursuant to the legal duties established under state law. All states in the US, except Montana, recognize the at-will employm...

What is the Minimum Rationality standard for Constitutional Review? This standard, also known as the Rational Basis Standard of Review, requires that a law have a rational connection to a permissible state end (a legitimate goal of the government) to be Constitutional. This standard is applied when determining the Constitutionality of laws that do n...

What is the Retail Inventory Method? The retail inventory method is an accounting method used in calculating the total inventory or merchandise held by a store. To determine the retail value of the merchandise of a business, the total retail value of the beginning inventory and the value of goods purchased must be known.  The total amount of sales i...

What is Just In Time (JIT) Inventory System? Just-in-time inventory system (JIT) is an operations management strategy of ordering raw materials/goods, and receiving those raw materials/goods only as they are needed to keep the production process running to meet actual customer demand. That is, no excess stock is ordered, and it should arrive just in...

What is Business Recovery Risk? A business recovery risk refers to loss arising from a company's temporary disruption of activities, due to a lack of accessibility to things such as physical infrastructure. When a company loses its ability to conduct its day-to-day operations, it may disrupt the supply chain, loss of access to virtual systems, or da...