GLOSSARY

A

abate:

to reduce in amount; put an end to; make void or annul

abet:

to actively, knowingly, and intentionally assist another in the committing (or attempt) of a crime

abolitionist:

one favoring principles or measures fostering the end of slavery

absolute:

complete, pure, free from restriction or limitation

adherent:

a follower of a leader or party, or a believer in a cause

adjournment:

the closing, or end, of a session

adjudicate:

to settle something judicially

adjudicated:

a matter or controversy that has already been decided through judicial procedure

adjudication:

the act of settling something judicially

adjudicatory:

having to do with the process of settling something judicially

adverse:

contrary to one's interests; harmful or unfavorable

aggrieved:

suffering physical injury or a loss of one's property interest, monetary interest, or personal rights

agrarian:

having to do with farming or farming communities and their interests

alien:

a citizen of another country

alternative dispute resolution:

any means of settling disputes outside of the courtroom, typically including arbitration, mediation, early neutral evaluation, and conciliation

amend:

to alter or change

antitrust:

laws protecting commerce and trade from monopolistic restraints on competition

appellate:

a court having jurisdiction to review the findings of lower courts

appoint:

to select someone to fill an office or position

apportion:

to divide and assign according to a plan

appropriate:

to set aside for or assign to a particular purpose or group

arbitrate:

to resolve disagreements whereby parties choose a person or group of people familiar with the issues in question to hear and settle their dispute

arbitration

the settling of a dispute by a neutral third party

Articles of Confederation:

first constitution of the United States (in effect 1781–1789); it established a union between the thirteen states, but with a weak central government

B

bipartisan:

involving members of two parties, especially the two major political parties

blacklist:

a list of persons who are to be denied employment

block grant:

an unrestricted grant of federal money to state and local governments to support social welfare programs

bondage:

a state of being involuntarily bound or subjugated to someone or something

boycott:

to refuse to purchase goods or services from a specific company

C

capitulate:

to surrender under specific conditions; to give up resistance

carcinogenic:

cancer-causing

cause of action:

reason or ground for initiating a proceeding in court

censor:

to restrict the expression of something considered objectionable

charter:

document that creates a public or private corporation and outlines the principles, functions, and organization of the corporate body

checks and balances:

the limiting powers that each branch of government has over the other two. (The government is divided into three branches: legislative, executive, and judicial, each with distinct powers.)

civil action:

a lawsuit brought to protect an individual right or redress a wrong, as distinct from criminal proceedings

civil disobedience:

nonviolent protest

civil libertarian:

one who is actively concerned with the protection of the fundamental freedoms guaranteed to the individual in the Bill of Rights

civil penalties:

fines or money damages imposed as punishment

Civil Rights movement:

the movement to win political, economic, and social equality for African Americans

class action:

a lawsuit brought by a representative member of a large group of people who have suffered the same injury or damages

Cold War:

a conflict over ideological differences carried on by methods short of military action and usually without breaking off diplomatic relations; usually refers to the ideological conflict between the U.S. and former U.S.S.R.

collateral:

property put up by a borrower to secure a loan that could be seized if the borrower fails to pay back the debt

collective bargaining:

a method of negotiations, usually between employees and an employer, in which a representative negotiates on behalf of an organized group of people

commerce:

the large-scale exchange of goods, involving transportation from one place to another

commerce clause:

the provision of the U.S. Constitution (Article I, section 8, clause 3) that gives Congress exclusive powers over interstate commerce—the buying, selling, or exchanging of goods between states

commodity:

an article of trade or commerce that can be transported; especially an agricultural or mining product

common law:

a system of laws developed in England—and later applied in the U.S.—based on judicial precedent rather than statutory laws passed by a legislative body

communism:

an economic and social system characterized by the absence of classes and by common ownership of the means of production and subsistence

comply:

to act in accordance with a wish, request, demand, rule, order, or statute

constraint:

a restriction

consumer credit information:

credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts

consumption tax:

tax imposed on outlay for goods and services

contempt:

disobedience of a court's order; interference with the court's operation

Continental Congress:

the first central governing body of the United States (1774–1789)

contract:

a formal agreement, usually in writing, between two or more parties that can be legally enforced

conventional mortgage:

a home mortgage loan that is not federally insured

D

de novo:

(Latin) anew, a second time; the same as if it had not been heard before

debtor:

one who owes payment or other performance on an obligation; anyone liable on a claim

decedent:

one who has died; the deceased

deduction:

an amount subtracted from the amount of income that is used to calculate income tax due

default:

the failure by the borrower to comply with the terms of the loan, usually the failure to make payments

defaulter:

one who fails to comply with the terms of a loan or contract, usually by failing to make payments on a debt

defendant:

one against whom a legal action is brought

deflation:

a general decline in the prices of goods and services

demagogue:

a leader who obtains power by means of impassioned appeals to the emotions and prejudices of the populace

dependency:

a territory under the jurisdiction of a sovereign nation

detain:

to keep in custody or temporary confinement

directors:

those who establish the policies of the corporation

discharge petition:

a method for moving a bill from a committee to the floor of the House when a committee refuses to do so itself. The bill must have been held by a committee for at least thirty legislative days, and half of the House membership must sign the petition for release that is filed

disclosure:

obligation of parties to reveal material facts deemed necessary for one to make an informed decision

discount window:

a lending facility available to member banks of the Federal Reserve System

dividend:

a payment made by a company, based on its earnings, to its shareholders

dogma:

an established opinion expressed as an authoritative statement

draconian:

severe, harsh

Dust Bowl:

a semiarid region in the south-central United States where the topsoil was lost by wind erosion in the mid-1930s

E

egalitarian:

marked by a belief in human equality

electorate:

the body of people qualified to vote

emancipate:

to free from another's control, restraint, or bondage

embargo:

a prohibition on commerce with a particular country for political or economic reasons

encroach:

to infringe upon or violate

equal protection:

Constitutional guarantee that prevents states from denying a person or class of persons from the same protection under the law as those enjoyed by other persons or classes of persons

espionage:

the act of spying on the government to obtain secret information

ex officio:

(Latin) from office, by virtue of office; powers may be exercised by an officer which are not specifically conferred upon him, but are necessarily implied in his office

excise tax:

a tax levied on the manufacture or sale of specific—usually non-essential—commodities such as tobacco or liquor

executive order:

an order issued by the president that has the force of law

exorbitant:

an amount that far exceeds what is fair or customary

extortion:

the obtaining of money (or other concessions) by force or intimidation

F

faction:

a party or group united by a common cause

Federal Register:

a newspaper published daily by the National Archives and Records Administration to notify the public of federal agency regulations, proposed rules and notices, executive orders, and other executive branch documents

federal securities laws:

federal securities laws include the Securities Act of 1933, the Securities Exchange Act of 1934, and various rules and regulations under these acts. These acts regulate the offer and sales of securities as well as secondary markets for securities. They require numerous disclosures and prohibit deceptive practices

federalism:

a system of political organization; a union formed of separate states or groups that are ruled by a central authority on some matters but are otherwise permitted to govern themselves independently

felony:

a crime punished with a lengthy prison sentence (more than one year) or the death penalty

filibuster:

a tactic involving unlimited debate on the floor of the Senate designed to delay or prevent legislative action

fiscal year:

the term used for a business's accounting year; the period is usually twelve months which can begin during any month of the calendar year

foreclosure:

when a person defaults on (fails to pay) a mortgage debt, the owner's legal right to the property is terminated. The real estate may be sold at an auction by the creditor; the money raised is then put toward the mortgage debt

forfeiture:

the loss of something (property, assets) as a result of breaking the law

free expression:

the right to state opinions without interference or censorship

freedman:

one freed from slavery

G

garnish:

process whereby one's property or money that is in the possession of a third party is paid to another to satisfy one's debt

gold standard:

a monetary standard under which the basic unit of currency is equal in value to and can be exchanged for a specified amount of gold

graduated rate schedule:

tax structured so that the rate increases as the amount of taxpayer income increases

grassroots:

originating or operating at the basic level of society

Great Depression:

the longest and most severe economic depression in American history (1929–1939); its effects were felt throughout the world

Great Society:

broad term for the domestic programs of President Lyndon B. Johnson, in which he called for "an end to poverty and racial injustice

gross domestic product:

the total market value of goods and services produced within a nation in a given time period (usually one year)

H

habeas corpus:

(Latin, "you should have the body") a written order to bring a prisoner in front of a judge, to determine whether his or her detention is lawful

high-rate mortgages:

a mortgage with a high interest rate because it is perceived to be a higher risk based on the purchaser's credit history

I

illiquid:

incapable of being readily converted to cash

immigrant:

one who comes to a country to take up permanent residence

immunity:

protection from legal action

impair:

to lessen or reduce

impeach:

to set up a formal hearing on charges of high crimes and misdemeanors which could result in removal from office

imperial presidency:

a powerful president who is being belligerent internationally, being intrusive domestically, and running roughshod over another branch of government

import:

to bring in merchandise from another country as part of a commercial business

individual retirement account (IRA):

an account into which a person can deposit up to a certain amount of money annually without being taxed until either retirement or early withdrawal (withdrawal when the person is under a certain age)

inflation:

a general rise in the prices of goods and services

infringe:

to exceed the limits of; to violate

ingress:

a means or place for entering

injunctive relief:

a court order that requires a person to refrain from doing something; the order guards against future damages rather than remedies past damages

insurgent:

one who revolts against authority; especially a member of a political party who rebels against its leadership

insurrection:

a rebellion against a government or civil authority

interest expense:

the money a corporation or individual pays out in interest on loans

interest rate:

the fee for borrowing money, expressed as a percentage of the amount borrowed

interstate commerce:

trade involving the transportation of goods from one state to another, or the transfer of property between a person in one state and a person in another

interventionism:

a policy of getting involved in international affairs through membership in international organizations and multinational alliances

invidious:

tending to arouse ill will or animosity; an offensive or discriminatory action

involuntary servitude:

forced service to a master

isolationism:

a policy of not getting involved in international affairs

J

Jim Crow:

the systematic practice of segregating and suppressing African Americans; the name is from a character in a nineteenth-century minstrel show

judgment debtor:

one who owes money as a result of a judgment in favor of a creditor

judicial:

having to do with judgments in courts of law or with the administration of justice

judicial decree:

the ruling of a court

jurisdiction:

the territory or area within which authority may be exercised

L

labor union:

an organization of workers whose main purpose is to collectively bargain with employers about the terms and conditions of employment

laissez-faire:

a doctrine opposing governmental interference in economic affairs beyond the minimum necessary for the maintenance of peace and property rights

lame-duck:

an elected officer holder who is to be succeeded by another; in the case of Congress, the time it is in session between the November elections and the convening of the new Congress the following year

legal tender:

an offer of money in the form of coin, paper money, or another circulating medium that the law compels a creditor to accept in payment of a debt

liability:

an obligation, responsibility, or duty that one is bound by law to perform

libel:

the publication of statements that wrongfully damage another's reputation

libertarian:

one who upholds the principles of absolute and unrestricted liberty and strongly opposes any governmentimposed restrictions

licentious:

lacking moral discipline or sexual restraint

lien:

legal claim to property by a creditor (one who makes a loan) as a condition of a contract

life estate:

an estate that lasts for the duration of the life of the person holding it

litigation:

a lawsuit

lobby:

to try to persuade the legislature to pass laws and regulations that are favorable to one's interests and to defeat laws that are unfavorable to those interests

lockout:

the withholding of work from employees by management, to get them to agree to certain terms and conditions

long-term capital gains:

profit made on the sale or exchange of a capital asset (usually stock or real estate) that has been owned for more than twelve months

loophole:

a means of evading or escaping an obligation or enforcement of a law or contract

M

mandate:

an order or requirement

marginal rates:

the total percentage of tax one pays on one's income, taking into account all the separate taxes levied on one's wages or salary

Mason-Dixon line:

the boundary line between Pennsylvania on the north and Maryland on the south which, before the end of slavery, was the line between the slave and the free states

median:

the middle value in a distribution, above and below which lie an equal number of values

migrate:

to move from one place to another

militia:

a part-time army made up of ordinary citizens

mirabile dictu

"wonderful to relate"

monopoly:

exclusive control of a market by one company, often marked by the controlling of prices and exclusion of competition

moratorium:

a legally required suspension of activity

mortgage loan:

a loan to purchase real estate; the real estate purchased with the loan usually serves as collateral against default

muckraker:

one who tries to find and expose real or alleged evidence of corruption

multilateral:

undertaken by multiple persons, parties, or entities, in conjunction with one another

N

nadir:

lowest point

naturalize:

to grant the privileges and rights of citizenship

necessary and proper clause:

provision in the U.S. Constitution (Article I, section 8, clause 18) that authorizes Congress to pass laws needed in order to exercise its constitutional powers

negotiate:

to deal or bargain with another as in the preparation of a treaty or contract

New Deal:

the legislative and administrative program of President Franklin D. Roosevelt designed to promote economic recovery and social reform (1933–1939)

nominate:

to propose one for appointment to office

nonprofit:

an organization whose business is not conducted or maintained for the purpose of making a profit but is usually aimed at providing services for the public good

nonpunitive:

not having the character of punishment or penalty

notice and disclosure requirements:

in contracts and other transactions, the law requires that key provisions and penalties be disclosed in plain English so a consumer can make an informed decision

null and void:

having no legal force; invalid

O

obscene:

morally offensive; designed to degrade or corrupt

offender:

one who breaks a rule or law

omnibus:

including many things at once

OPEC oil embargo:

in October 1973, the Organization of Petroleum Exporting Countries (OPEC) banned oil exports to the United States because the United States sold arms to Israel during the Arab-Israeli War of 1973

open market operations:

purchases and sales of government securities by the Federal Reserve Bank, designed to control the money supply and short-term interest rates

opining:

to hold or state as an opinion

ordinance:

a law

originate:

a loan is originated when the loan is first made by the lender to a borrower. The origination function includes taking the borrower's loan application, checking the borrower's credit history and employment, obtaining an appraisal of valuation of the home, and funding the loan

override:

if the President vetoes a bill passed by Congress, the bill can still become law if twothirds of each house of Congress votes to override the veto

P

partisan:

someone loyal to a particular party, cause, or person

paternalism:

a policy or practice of treating or governing people in a fatherly manner especially by providing for their needs without giving them responsibility

penal:

having to do with punishments or penalties

perjury:

lying under oath or otherwise breaking an oath by not doing what was promised

personal consumption goods:

goods purchased for personal use

photovoltaic:

relating to the technology used to capture radiation (light) from the sun and turn it into electricity

plaintiff:

one who brings legal action against another

populist:

someone who identifies with and believes in the rights and virtues of the common people (often as the foundation of a political philosophy)

poverty line:

level of personal or family income below which a person or family is classified as poor. The standard is set by the government

powers of appointment:

the right to appoint or give away property

preemption

when a conflict of authority arises between the federal and state governments, the federal government prevails

president-elect:

one who has been elected president but has not yet begun his term of office

preventive relief:

relief granted to prevent a foreseen harm

private litigation:

a civil lawsuit (one brought to protect an individual right or redress a wrong), as distinct from criminal proceedings

private sector:

the part of the economy that is not controlled by the government

Prohibition:

period from 1919 to 1933, during which the making, transport, and sale of alcoholic beverages was illegal in the United States

promulgate:

to make the terms of a law known by formal public announcement

proponent:

an advocate

prosecute:

to begin and carry on a lawsuit; to bring legal action against

protectionism:

the use of tariffs to protect domestic industries from foreign competition

protectionist:

advocating the use of tariffs to protect domestic industries from foreign competition

public held company:

a corporation whose stock anyone can buy on a stock exchange

public offering:

the making available of corporate stocks or bonds to the general public

pursuant:

to execute or carry out in accordance with or by reason of something

Q

quid pro quo:

(Latin, "something for something") an equal exchange or substitution

quorum:

the number of members required to be present for a vote to take place

R

ratify:

to formally approve; three-fourths of all states in the Union must approve an amendment for it becomes part of the Constitution

real income:

income of an individual, organization, or country, after taking into consideration the effects of inflation on purchasing power

recession:

a period of reduced economic activity, but less severe than a depression

Reconstruction:

the political and economic reorganization and reestablishment of the South after the Civil War

redress:

to make right what is wrong

refinance:

to pay off existing loans with funds secured from new loans

Regulation Q:

a banking regulation that prohibits paying interest on short-term deposits; the scope of this regulation has narrowed over time, so that most non-commercial deposits are unaffected

remedy:

the means to compensate a person whose rights have been violated, which usually takes the form of money damages

repatriate:

to return to the country of one's birth or citizenship

repeal:

to revoke or cancel

rescind:

to declare a contract void in its inception and to put an end to it as though it never existed

rescission provisions:

provisions in a contract that, if they occur or fail to occur, allow the contract to be rescinded

resolution:

a formal statement of opinion, intent, or will voted by an official body

reverse mortgage:

a type of home mortgage under which an elderly homeowner is allowed a long-term loan in the form of monthly payments against his or her paid-off equity as collateral, repayable when the home is eventually sold

S

sabotage:

the destruction of property or obstruction of an action intended to hinder the normal operations of a company or government

secede:

to depart or withdraw from an organization

secondary market:

the market that exists for an issue of stock after large blocks of shares have been publicly distributed, or items not obtained directly from the manufacturer

sectarian

characteristic of a group following a specific doctrine or leader

securities:

stocks, bonds, and certain other instruments of investment

security interest:

a form of interest in property which provides that the property may be sold on default in order to satisfy the obligation for which the security interest is given; a mortgage is used to grant a security interest in real property

seditious:

urging resistance to or overthrow of the government

seed money:

money needed or provided to start a new project

self-incrimination:

the giving of testimony that will likely subject one to criminal prosecution

separation of powers:

the division of the government into three branches: legislative, executive, and judicial, each with distinct powers. This separation supports a system of checks and balances

Sexual Revolution:

the liberalization of social and moral attitudes toward sex and sexual relations

slander:

to make a false statement that defames and damages another's reputation

socialism:

any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods

sovereign:

self-governing and independent

sovereign immunity:

the doctrine that prevents bringing a lawsuit against the government without the government's consent

special session:

an extraordinary or special session of Congress is called to meet in the interval between regular sessions

specie:

money in the form of coins, usually in a metal with intrinsic value, such as gold or silver

speculate:

to engage in the buying or selling of a commodity with the expectation (or hope) of making a profit

statute:

a law enacted by the legislative branch of government

stipend:

a fixed or regular payment, such as a salary for services rendered or an allowance

stipulate:

to specify as a condition of an agreement

strike:

to stop work in protest, usually so as to make an employer comply with demands

subpoena:

a writ issued under authority of a court to compel the appearance of a witness at a judicial hearing

superannuated:

retired or discharged because of age; obsolete; out of date

surveillance:

the close observation of a person, place, or process

T

tariff:

a tax imposed on goods when imported into a country

tax credit:

a reduction in the amount an individual or corporation owes in taxes

tax shelter:

a strategy or method that allows one to legally reduce or avoid tax liabilities

temperance:

moderation in or abstinence from the consumption of alcohol

tender offer:

a public offer to purchase shares of a specific corporation, usually at a price above what the market offers, in an attempt to accumulate enough shares to take control of the company

terminology:

the vocabulary of technical terms and usages appropriate to a particular trade, science, or art

tort:

any wrongdoing other than a breach of contract for which a civil lawsuit can be brought. Examples include physical injury, damage to property, and damage to one's reputation

tortuous:

unlawful conduct that subjects a person to tort liability

totalitarian:

the political concept that the citizen should be totally subject to an absolute state authority

treason:

the offense of attempting to overthrow the government of one's own state or country

treaty:

a binding international agreement

treaty clause:

provision of the U.S. Constitution (Article II, section 2, clause 2) that grants the power to make treaties with foreign nations to the president, which are subject to approval by the Senate

truancy:

skipping out of school

U

underwrite:

to assume financial responsibility and risk for something

unilateral:

undertaken by one person, party, or entity

United States Trade Representative (USTR):

a cabinet-level official appointed by the president who has primary responsibility for directing U.S. trade policy and trade negotiations

unprecedented:

not resembling something already in existence

unsolicited:

not wanted or requested

V

veto:

when the president returns a bill to Congress with a statement of objections

vigilante:

a member of a self-appointed group of citizens who undertake law enforcement within their community without legal authority

W

waive:

to give up voluntarily

waivers of immunity:

legal statement that gives up the government's right to sovereign immunity (the doctrine that the government cannot be sued without its consent)

warrant:

a document issued by a judge granting authority to do something

Watergate:

the scandal following the break-in at the Democratic National Committee headquarters located in the Watergate apartment and office complex in Washington, D.C., in 1972