Sections
Subchapter A General Provisions 1.101 – 1.108
Subchapter B General Definitions and Principles of Interpretation 1.201 – 1.206
Subchapter C Territorial Applicability and General Rules 1.301 – 1.310

Terms Used In Texas Business and Commerce Code Chapter 1

  • Account: means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit. See Texas Business and Commerce Code 4.104
  • Adjourn: A motion to adjourn a legislative chamber or a committee, if passed, ends that day's session.
  • Affirmed: In the practice of the appellate courts, the decree or order is declared valid and will stand as rendered in the lower court.
  • Afternoon: means the period of a day between noon and midnight. See Texas Business and Commerce Code 4.104
  • Alcoholic beverage: means alcohol, or any beverage containing more than one-half of one percent of alcohol by volume, which is capable of use for beverage purposes, either alone or when diluted. See Texas Alcoholic Beverage Code 1.04
  • Allegation: something that someone says happened.
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • Arraignment: A proceeding in which an individual who is accused of committing a crime is brought into court, told of the charges, and asked to plead guilty or not guilty.
  • Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
  • Bailee: means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession of goods and contracts to deliver them. See Texas Business and Commerce Code 7.102
  • Bailiff: a court officer who enforces the rules of behavior in courtrooms.
  • Banking day: means the part of a day on which a bank is open to the public for carrying on substantially all of its banking functions. See Texas Business and Commerce Code 4.104
  • Beer: means a malt beverage containing one-half of one percent or more of alcohol by volume and not more than four percent of alcohol by weight. See Texas Alcoholic Beverage Code 1.04
  • Brewer: means a person engaged in the brewing of malt beverages, whether located inside or outside the state. See Texas Alcoholic Beverage Code 1.04
  • Building materials: includes lumber, windows, and other materials used in the construction or repair of improvements to real property. See Texas Business and Commerce Code 17.45
  • Buyer: means a person who buys or contracts to buy goods. See Texas Business and Commerce Code 2.103
  • Buyer in the ordinary course of business: means a person who in good faith and without knowledge that the sale to him or her is in violation of the ownership rights or security interest or leasehold interest of a third party in the goods buys in the ordinary course from a person in the business of selling goods of that kind but does not include a pawnbroker. See Texas Business and Commerce Code 2A.103
  • Carrier: means a person that issues a bill of lading. See Texas Business and Commerce Code 7.102
  • Case law: The law as laid down in cases that have been decided in the decisions of the courts.
  • Chambers: A judge's office.
  • Chief judge: The judge who has primary responsibility for the administration of a court but also decides cases; chief judges are determined by seniority.
  • Clearing house: means an association of banks or other payors regularly clearing items. See Texas Business and Commerce Code 4.104
  • Commercial unit: means a unit of goods as by commercial usage is a single whole for purposes of lease and division of which materially impairs its character or value on the market or in use. See Texas Business and Commerce Code 2A.103
  • Commission: means the Texas Alcoholic Beverage Commission. See Texas Alcoholic Beverage Code 1.04
  • Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
  • Consignee: means a person named in a bill of lading to which or to whose order the bill promises delivery. See Texas Business and Commerce Code 7.102
  • Consignor: means a person named in a bill of lading as the person from which the goods have been received for shipment. See Texas Business and Commerce Code 7.102
  • Consumer: means an individual, partnership, corporation, this state, or a subdivision or agency of this state who seeks or acquires by purchase or lease, any goods or services, except that the term does not include a business consumer that has assets of $25 million or more, or that is owned or controlled by a corporation or entity with assets of $25 million or more. See Texas Business and Commerce Code 17.45
  • Consumer lease: means a lease that a lessor regularly engaged in the business of leasing or selling makes to a lessee who is an individual and who takes under the lease primarily for a personal, family, or household purpose, if the total payments to be made under the lease contract, excluding payments for options to renew or buy, do not exceed $25,000. See Texas Business and Commerce Code 2A.103
  • Consumer protection division: means the consumer protection division of the attorney general's office. See Texas Business and Commerce Code 17.45
  • Continuance: Putting off of a hearing ot trial until a later time.
  • Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See Texas Business and Commerce Code 2.106
  • Counterclaim: A claim that a defendant makes against a plaintiff.
  • Court reporter: A person who makes a word-for-word record of what is said in court and produces a transcript of the proceedings upon request.
  • Customer: means a person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank. See Texas Business and Commerce Code 4.104
  • Decedent: A deceased person.
  • Delivery order: means a record that contains an order to deliver goods directed to a warehouse, carrier, or other person that in the ordinary course of business issues warehouse receipts or bills of lading. See Texas Business and Commerce Code 7.102
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Distilled spirits: means alcohol, spirits of wine, whiskey, rum, brandy, gin, or any liquor produced in whole or in part by the process of distillation, including all dilutions or mixtures of them, and includes spirit coolers that may have an alcoholic content as low as four percent alcohol by volume and that contain plain, sparkling, or carbonated water and may also contain one or more natural or artificial blending or flavoring ingredients. See Texas Alcoholic Beverage Code 1.04
  • Docket: A log containing brief entries of court proceedings.
  • Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (Section Texas Business and Commerce Code 4.104
  • Documentary material: includes the original or a copy of any book, record, report, memorandum, paper, communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording, wherever situated. See Texas Business and Commerce Code 17.45
  • Draft: means a draft as defined in Section Texas Business and Commerce Code 4.104
  • Drawee: means a person ordered in a draft to make payment. See Texas Business and Commerce Code 4.104
  • Economic damages: means compensatory damages for pecuniary loss, including costs of repair and replacement. See Texas Business and Commerce Code 17.45
  • Escheat: Reversion of real or personal property to the state when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank account) has been inactive for a certain period of time. Source: OCC
  • Ex officio: Literally, by virtue of one's office.
  • Executor: A male person named in a will to carry out the decedent
  • Fair Credit Reporting Act: A federal law, established in 1971 and revised in 1997, that gives consumers the right to see their credit records and correct any mistakes. Source: OCC
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Fault: means a wrongful act, omission, breach, or default. See Texas Business and Commerce Code 2A.103
  • Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
  • Finance lease: means a lease with respect to which:
    (A) the lessor does not select, manufacture, or supply the goods;
    (B) the lessor acquires the goods or the right to possession and use of the goods in connection with the lease; and
    (C) one of the following occurs:
    (i) the lessee receives a copy of the contract by which the lessor acquired the goods or the right to possession and use of the goods before signing the lease contract;
    (ii) the lessee's approval of the contract by which the lessor acquired the goods or the right to possession and use of the goods is a condition to effectiveness of the lease contract;
    (iii) the lessee, before signing the lease contract, receives an accurate and complete statement designating the promises and warranties, and any disclaimers of warranties, limitations or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods; or
    (iv) if the lease is not a consumer lease, the lessor, before the lessee signs the lease contract, informs the lessee in writing (a) of the identity of the person supplying the goods to the lessor, unless the lessee has selected that person and directed the lessor to acquire the goods or the right to possession and use of the goods from that person, (b) that the lessee is entitled under this chapter to the promises and warranties, including those of any third party, provided to the lessor by the person supplying the goods in connection with or as part of the contract by which the lessor acquired the goods or the right to possession and use of the goods, and (c) that the lessee may communicate with the person supplying the goods to the lessor and receive an accurate and complete statement of those promises and warranties, including any disclaimers and limitations of them or of remedies. See Texas Business and Commerce Code 2A.103
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
  • Goods: means all things that are moveable at the time of identification to the lease contract, or are fixtures (Section Texas Business and Commerce Code 2A.103
  • Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Texas Business and Commerce Code 7.102
  • Goods: means tangible chattels or real property purchased or leased for use. See Texas Business and Commerce Code 17.45
  • Grand jury: agreement providing that a lender will delay exercising its rights (in the case of a mortgage,
  • Grantor: The person who establishes a trust and places property into it.
  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • Impeachment: (1) The process of calling something into question, as in "impeaching the testimony of a witness." (2) The constitutional process whereby the House of Representatives may "impeach" (accuse of misconduct) high officers of the federal government for trial in the Senate.
  • Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
  • Indictment: The formal charge issued by a grand jury stating that there is enough evidence that the defendant committed the crime to justify having a trial; it is used primarily for felonies.
  • Installment lease contract: means a lease contract that authorizes or requires the delivery of goods in separate lots to be separately accepted, even though the lease contract contains the clause "each delivery is a separate lease" or its equivalent. See Texas Business and Commerce Code 2A.103
  • Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
  • Intentionally: means actual awareness of the falsity, deception, or unfairness of the act or practice, or the condition, defect, or failure constituting a breach of warranty giving rise to the consumer's claim, coupled with the specific intent that the consumer act in detrimental reliance on the falsity or deception or in detrimental ignorance of the unfairness. See Texas Business and Commerce Code 17.45
  • Inter vivos: Transfer of property from one living person to another living person.
  • Interrogatories: Written questions asked by one party of an opposing party, who must answer them in writing under oath; a discovery device in a lawsuit.
  • Issuer: means a bailee that issues a document of title or, in the case of an unaccepted delivery order, the person that orders the possessor of goods to deliver. See Texas Business and Commerce Code 7.102
  • Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Texas Business and Commerce Code 4.104
  • Knowingly: means actual awareness, at the time of the act or practice complained of, of the falsity, deception, or unfairness of the act or practice giving rise to the consumer's claim or, in an action brought under Subdivision (2) of Subsection (a) of Section Texas Business and Commerce Code 17.45
  • Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
  • Lease: means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. See Texas Business and Commerce Code 2A.103
  • Lease agreement: means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided by this chapter. See Texas Business and Commerce Code 2A.103
  • Lease contract: means the total legal obligation that results from the lease agreement as affected by this chapter and any other applicable rules of law. See Texas Business and Commerce Code 2A.103
  • Leasehold interest: means the interest of the lessor or the lessee under a lease contract. See Texas Business and Commerce Code 2A.103
  • Legal tender: coins, dollar bills, or other currency issued by a government as official money. Source: U.S. Mint
  • Lessee: means a person who acquires the right to possession and use of goods under a lease. See Texas Business and Commerce Code 2A.103
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See Texas Business and Commerce Code 2A.103
  • Licensee: means a person who is the holder of a license provided in this code, or any agent, servant, or employee of that person. See Texas Alcoholic Beverage Code 1.04
  • Lien: means a charge against or interest in goods to secure payment of a debt or performance of an obligation, but the term does not include a security interest. See Texas Business and Commerce Code 2A.103
  • Lineal descendant: Direct descendant of the same ancestors.
  • Liquor: means any alcoholic beverage containing alcohol in excess of four percent by weight, unless otherwise indicated. See Texas Alcoholic Beverage Code 1.04
  • Lot: means a parcel or a single article that is the subject matter of a separate lease or delivery, whether or not it is sufficient to perform the lease contract. See Texas Business and Commerce Code 2A.103
  • malt liquor: means a malt beverage containing more than four percent of alcohol by weight. See Texas Alcoholic Beverage Code 1.04
  • Manufacturer: means a person engaged in the manufacture or brewing of beer, whether located inside or outside the state. See Texas Alcoholic Beverage Code 1.04
  • Merchant lessee: means a lessee that is a merchant with respect to goods of the kind subject to the lease. See Texas Business and Commerce Code 2A.103
  • Mixed beverage: means one or more servings of a beverage composed in whole or part of an alcoholic beverage in a sealed or unsealed container of any legal size for consumption on the premises where served or sold by the holder of a mixed beverage permit, the holder of a daily temporary mixed beverage permit, the holder of a caterer's permit, the holder of a mixed beverage late hours permit, the holder of a private club registration permit, or the holder of a private club late hours permit. See Texas Alcoholic Beverage Code 1.04
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • most recent federal census: means the United States decennial census immediately preceding the action in question. See Texas Government Code 312.011
  • National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
  • Oral argument: An opportunity for lawyers to summarize their position before the court and also to answer the judges' questions.
  • Permittee: means a person who is the holder of a permit provided for in this code, or an agent, servant, or employee of that person. See Texas Alcoholic Beverage Code 1.04
  • Person: means a natural person or association of natural persons, trustee, receiver, partnership, corporation, organization, or the manager, agent, servant, or employee of any of them. See Texas Alcoholic Beverage Code 1.04
  • Person: means an individual, partnership, corporation, association, or other group, however organized. See Texas Business and Commerce Code 17.45
  • Plaintiff: The person who files the complaint in a civil lawsuit.
  • Plea: In a criminal case, the defendant's statement pleading "guilty" or "not guilty" in answer to the charges, a declaration made in open court.
  • Pleadings: Written statements of the parties in a civil case of their positions. In the federal courts, the principal pleadings are the complaint and the answer.
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
  • Premises: has the meaning given it in Section Texas Alcoholic Beverage Code 1.04
  • present sale: means a sale which is accomplished by the making of the contract. See Texas Business and Commerce Code 2.106
  • Present value: means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain. See Texas Business and Commerce Code 2A.103
  • Purchase: includes taking by sale, lease, mortgage, security interest, pledge, gift, or any other voluntary transaction creating an interest in goods. See Texas Business and Commerce Code 2A.103
  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
  • Remand: When an appellate court sends a case back to a lower court for further proceedings.
  • Reporter: Makes a record of court proceedings and prepares a transcript, and also publishes the court's opinions or decisions (in the courts of appeals).
  • Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
  • Residence: means a building:
    (A) that is a single-family house, duplex, triplex, or quadruplex or a unit in a multiunit residential structure in which title to the individual units is transferred to the owners under a condominium or cooperative system; and
    (B) that is occupied or to be occupied as the consumer's residence. See Texas Business and Commerce Code 17.45
  • Seller: means a person who sells or contracts to sell goods. See Texas Business and Commerce Code 2.103
  • Service of process: The service of writs or summonses to the appropriate party.
  • Services: means work, labor, or service purchased or leased for use, including services furnished in connection with the sale or repair of goods. See Texas Business and Commerce Code 17.45
  • Shipper: means a person that enters into a contract of transportation with a carrier. See Texas Business and Commerce Code 7.102
  • Sublease: means a lease of goods the right to possession and use of which was acquired by the lessor as a lessee under an existing lease. See Texas Business and Commerce Code 2A.103
  • Supplier: means a person from whom a lessor buys or leases goods to be leased under a finance lease. See Texas Business and Commerce Code 2A.103
  • Supply contract: means a contract under which a lessor buys or leases goods to be leased. See Texas Business and Commerce Code 2A.103
  • Testator: A male person who leaves a will at death.
  • Testimony: Evidence presented orally by witnesses during trials or before grand juries.
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • True bill: Another word for indictment.
  • Unconscionable action or course of action: means an act or practice which, to a consumer's detriment, takes advantage of the lack of knowledge, ability, experience, or capacity of the consumer to a grossly unfair degree. See Texas Business and Commerce Code 17.45
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
  • Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
  • Verdict: The decision of a petit jury or a judge.
  • Warehouse: means a person engaged in the business of storing goods for hire. See Texas Business and Commerce Code 7.102
  • Warrantor: means a person named under the terms of a vehicle protection product warranty as the contractual obligor to a person in this state who purchases or otherwise possesses a vehicle protection product. See Texas Business and Commerce Code 17.45
  • Writ: A formal written command, issued from the court, requiring the performance of a specific act.