Business Law Glossary: B

Back Pay: A type of damages award in an employment lawsuit that represents the amount of money the employee would have earned if the employee was not fired or denied a promotion illegally. Bait and Switch: A dishonest sales practice in which a business advertises a bargain price for an item in order to draw customers into the store and then tells the prospective buyer that the advertised item is of poor quality or no longer available and attempts to sell them something else that is higher priced. Balance Sheet: The statement of the assets and the liabilities (amounts owed) of a business at a particular time usually prepared each month, quarter of a year, annually, or upon sale of the business. Bench Trial: A trial without a jury. The judge rules on facts and evidence presented to him. Blue Sky Laws: The securities laws of individual states, collectively. These laws seek to protect people from investing in sham companies-companies that offer nothing more than "blue sky." Board of Directors: The directors of a corporation, collectively. The directors of a corporation are its governing board. Elected by shareholders, they vote on major corporate matters such as the issuing of shares of stock, election of officers, and approval of mergers and acquisitions. Bond: An interest-bearing instrument issued by a corporation or other entity that serves as evidence of a debt or obligation. Book Account: An account of a customer kept in a business ledger of debits and credits (charges and payments), which shows the amount due at any given time. This can provide a clear basis for suing for a debt. Bucket Shop: An unofficial and usually illegal betting operation in which the prices of stocks and commodities are posted and the customers bet on the rise and fall of prices without actually buying stock, commodities, or commodity futures. Burden of Proof: The obligation of one party in a suit to prove all the requirements necessary to show entitlement to recovery. If the burden is not met, the party with the burden will lose the issue or the case. Business Judgment Rule: The rule that shields directors from liability for mismanagement of the corporations that they serve. Business Law: Business law is the general field of law relating to business organizations, business structures, and business transactions. Also included in the business law field are issues related to real estate, tax, and the environment. Business law courses are available for non-lawyers at the college level. For law students, business law courses are very detailed and will allow the attorney to give competent business law advice as to what kind of business organization might be appropriate for a client and what course of action may be best in certain business transactions. Bylaws: The internal operating rules of a corporation usually set out in a five to twenty page document. Bylaws govern such matters as holding meetings, voting, quorums, elections, and the powers of directors and officers.