buy

To acquire the ownership of property by giving an accepted price or consideration therefor; or by agreeing to do so; to acquire by the payment of a price or value; to purchase. To obtain something for a price, usually money.

See also purchase

@ Buy American acts

Federal and state statutes which require a preference for American made goods over foreign made goods in government contracts. The purpose of such acts is to protect domestic industry, goods and labor.

See 41 U.S.C.A. No. 10

@ buy and sell agreement

An arrangement, particularly appropriate in the case of a closely-held corporation or a partnership, whereby the surviving owners (i.e. shareholders or partners) or the entity (i.e., corporation or partnership) agree to purchase the interest of a withdrawing or deceased owner (i.e., shareholder or partner).

The buy and sell agreement provides for an orderly disposition of an interest in a business and is beneficial in setting the value of such interest for death tax purposes.

An agreement between or among part-owners of a business that under stated conditions (usually severance of employment, disability, or death), the person withdrawing or his heirs are legally obligated to purchase their interest to the remaining part-owners, and the remaining part-owners are legally obligated to sell at a price fixed in the agreement either on a dollar basis or on a formula for computing the dollar value to be paid.

@ entity buy and sell agreement

A buy and sell agreement whereby the entity is to purchase the withdrawing or deceased owner's interest. When the entity is a corporation, the agreement generally involves a stock redemption on the part of the withdrawing shareholder

@ buy-down

Money that is paid by or on behalf of a homeowner at the time of purchase to reduce the mortgage interest rate and thereby lower monthly payments. Home builders frequently offer buy-downs

@ buyer

One who buys; a purchaser, particularly of chattels. A person who buys or contracts to buy goods. U.C.C. No. 2-103(lXa).

See also purchaser

@ buyer in ordinary course of business

A person who in good faith and without knowledge that the sale to him is in violation of the ownership rights or security interest of a third party in the goods buys in ordinary course from a person hi the business of selling goods of that kind but does not include a pawnbroker. "Buying" may be for cash or by exchange of other property or on secured or unsecured credit and includes receiving goods or documents of title under a pre-existing contract for sale but does not include a transfer in bulk or as security for or in total or partial satisfaction of a money debt. U.C.C. No. 1-201(9)

@ buyer's market

Situation where supply is greater than demand

@ buy in

See buying in

@ buying dormant titles

The purchase of the rights or claims to real estate of a person who is not in possession of the land or is deceased. Such purchases were declared void by English statute (1541); and are similarly void in most states.

See also bracery

@ buying in

Buying of property at auction or tax or mortgage foreclosure sale by original owner or by one with interest in property

@ buying long

Purchase of stocks now with the expectation of selling them for a profit in the future

@ buying on margin

Purchase of security with payment part in cash and part by a loan. Normally, the loan is made by the broker.

See also margin account

@ buyout

The purchase of a controlling percentage of a company's shares. A buyout can be accomplished through negotiation, through a tender offer, or through a merger.

See also leveraged buyout

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