The Law Dictionary

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

Category: R

REVERSE EXCHANGE

The exchange of a property before the previuos property has been given up. Opposite of deferred exchange.

REVIEW COPY

A bound and printed copy of a book or work that is sent to reviewers before the official date of publication.

REWARD SYSTEM

The allocation of compensation and benefits to employees that follow the standards, rules and procedures established.

RIGHT OF SILENCE

The right that is given to a person, who by speaking or answering may incriminate himself in the eyes of the law.

RIPPLE EFFECT

An effect that is indirect but radiates out from the initial effect.

RISK DIVERSIFICATION

The allocation of risk in proportion to all the parties of a contract. Also known as risk allocation.

RISK OF LOSS

The chance of bearing the costs that are associated with destruction, damage or the inability of locating goods, documents and other property.

RISK VARIABLE

An element in a situation that a change in its state can cause a change in degree of risk exposure.

RORSCHACH TEST

The technique based on a series of ink blot shapes used to assess personality.

ROUTINE

1. Any activity performed at regular intervals.2. The repitition of a procedure that does not vary.

RULES OF FAIR PRACTICE

The rules for code of conduct that have been developed by NASD for brokers when they conduct business with the public.

RUSSIAN SERVICE

A form of waiter service faster and less expensive than French service . The food is finished off with garnishes etc in the kitchen and brought to the table by one waiter.

RATCHET CLAUSE

1. Contracts: A stipulation where the contract rights of those involved is adjusted according to the formula agreed to as each stage is completed. 2. Utility Bills: A stipulation where the monthly

RATE OF RETURN RULE

Essential rule of investment that states that an investor should make an investment where the rate of return is larger than the prospective cost of the capital (time deposit interest rate).

RATIONAL DECISION MAKING APPROACH

A rational decision making approach is a methodical approach in which data that has been obtained through observation or statistical analysis or modeling is used in making decisions that are long-term.

REACTION PLAN

A reaction plan is the action that is taken in a control plan when abnormal events or a non-conforming phenomenon have been detected.

REAL ESTATE INVESTING

Real estate bought purposely to earn an income versus using the residence as a primary place of residence. A real estate investor will purchase buildings with the intent to rent.

REAL TIME PROCESSING

The processing of data that appears as though it takes place instantaneously or actually does take place within seconds after the data is input or after the command has been received.

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