The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: A

ABATEMENT

1. Commerce: a reduction in the amount of a bill due to factors such as demurrage, overtime penalty, or rent. 2. Environment: to reduce or eliminate polluting or hazardous substances. This is

ABILITY TO REPAY

An individuals ability to repay a debt. This term also extends to borrowing institutions. This is a key factor used in the lending decision.

ABROGATE

1. To nullify an contract by means of mutual agreement. 2. To officially abolish a law.

ABSOLUTE PRESSURE

The sum both the barometric and gauge pressure which is equivalent to 14.7 pounds per square inch at sea level.

ABSORPTION ACCOUNT

1. In the process of creating a financial statement a ledger account is absorbed into another. 2. The account where overhead is listed against the volume of production.

ABUSIVE DISMISSAL

The firing of an employee that while done legally is considered to be unnecessarily. It is illegal in many countries and is also called unfair dismissal or wrongful dismissal.

ABATEMENT COST

A cost that occurs because a company creates a negative byproduct. This byproduct must be removed or the effect must be reduced.

ABSCISSA

On a graph or chart this is the horizontal (X) axis.

ABSOLUTE PRIORITY RULE

A legal concept indicating that if a public company DEFAULTS, shareholders are only entitled to recover their investments after creditors have been fully repaid. In most BANKRUPTCY cases shareholders receive little, if

ABSORPTION COSTING

The pricing practice where all factors of cost are reported to aid in the absorption rate. This guarantees all costs are recovered. It is also called full absorption costing, direct costing, and

ABUSIVE DRAW

Prematurely cashing a bond without the knowledge of the owner. While not illegal it is frowned upon.

ABBREVIATED ACCOUNTS

A simplified financial statement that a specific small firm is allowed to file. It is filed with the registrar of companies in the United Kingdom. Almost half of the active UK firms

ABIOTIC

A non-biological element that has an affect on the ecosystem. The opposite of a naturally occurring environmental element.

ABSENTEE LANDLORD

A property owner that rents or leaves their property vacant. They have not abandoned it. This individual is considered an absentee owner.

ABSOLUTE PRIVILEGE

A rule that protects the holder from harm that occurs from any actions or lack there of. Qualified privilege is another term for this.

ABSORPTION PRICING

A pricing method that includes variable cost per item and fixed costs. It guarantees a profit.

ABBROCHMENT

Purchasing items in wholesale in order to sell them as retail. This prevents competitors from buying the good creating a monopoly. Abbroachment is another term for this business transaction.

ABNORMAL RETURN

A periodic return on stocks traded in an investment portfolio should there be more or less than average returned. Also called an excess return.

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.