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gross negligence See NEGLIGENCE.

gross premium 1. The net premium plus expenses (i.e., the loading), less the interest factor. See LOADING; INTEREST FACTOR. 2. The premium for participating life insurance. See participating insurance under INSURANCE.

gross premium See PREMIUM (1).

gross profit See PROFIT (1).

gross profit Total sales revenue less the cost of the goods sold, no adjustment being made for additional expenses and taxes. Cf. net profit.

gross receipts The total amount of money or other consideration received by a business taxpayer for goods sold or services performed in a taxable year, before deductions.IRC (26 USCA) § 448; 26 C.F.R. § 1.448-lT (f)(2)(iv).

gross sales See SALE.

gross sales Total sales (esp. in retail) before deductions for returns and allowances. - Also termed sales in gross.

gross spread See SPREAD (4).

gross up To add back to a decedent's gross estate the gift taxes paid by the decedent or the decedent's estate on gifts made by the decedent or the decedent's spouse during the three-year period preceding the decedent's death. IRC (26 USCA) § 2035.

gross weight See WEIGHT.

gross, easement in See easement in gross under EASEMENT.

gross-income tax A tax on gross income, possibly after the deduction for costs of goods sold, rather than on net profits; an income tax without allowance for expenses or deductions. See gross income under INCOME.

gross-income multiplier See GROSS-RENT MULTIPLIER.

gross-income tax See TAX.

grossly inadequate consideration Consideration whose value is so much less than the fair value of the object acquired that it may not support finding that the transaction is a valid exchange. Depending on the surrounding circumstances, the transaction may actually be fraud, a gift, or something else other than a sale and purchase.

grossly inadequate consideration- See CONSIDERATION (1).

grossome See GRESSUME.

gross-receipts tax See TAX.

gross-receipts tax A tax on a businesss gross receipts, without a deduction for costs of goods sold, or allowance for expenses or deductions. See GROSS RECEIPTS.

gross-rent multiplier The ratio between the market value of rent-producing property and its annual gross rental income. The gross-rent multiplier is used as a method to estimate a property's market value. - Abbr. GRM. - Also termed gross-income multiplier.

ground (usu. pl.), The reason or point that something (as a legal claim or argument) relies on for validity <grounds for divorce> <several grounds for appeal>.

ground- 1. To provide a basis for (something, such as a legal claim or argument) <the decision was grounded on public policy>. 2. To base (something, such as a legal principle or judicial decision) on <the court grounded the decision on common law> <strict liability is grounded on public policy>.

ground annual 1. See ground rent under RENT (1). 2. See FEU DUTY.

ground landlord The grantor of an estate on which ground rent is reserved. See ground rent under RENT (1).

ground lease See LEASE.

ground of action 1. CAUSE OF ACTION (1). 2. CAUSE OF ACTION (2).

ground rent 1. Rent paid by a tenant under a long-term lease for the use of undeveloped land, usu. for the construction of a commercial building. - Also termed redeemable ground rent. See ground lease under LEASE. 2. A heritable interest, in rental income from land, reserved by a grantor who conveys the land in fee simple. This type of ground rent is found primarily in Maryland and Pennsylvania. Also termed (in Scots law) irredeemable ground rent; ground annual.

ground rent See RENT (I).

ground writ See WRIT.

groundage (grown-dij), Maritime law. A tax or toll levied on a vessel lying in port; the tax or toll so paid.

ground-law A fundamental law. See FUNDAMENTAL LAW. "If the power of a sovereign or of a government is limited by a ground-law, written or unwritten, a treaty cannot override that constitution," Theodore D. Woolsey, Introduction to the Studyoflntemational Law§ 103, at 167 (5th ed. 1878).

groundless adj. (Of a legal claim or argument), lacking a basis or a rationale <groundless cause of action>. See FRIVOLOUS.

ground-rent lease See ground lease under LEASE.

groundwater See WATER (1).

group insurance A form of insurance offered to a member of a group, such as the employees of a business, as long as that person remains a member of the group. Group insurance is typically health or life (usu. term life) insurance issued under a master policy between the insurer and the employer, who usu. pays all or part of the premium for the insured person. Other groups, such as unions and associations, often offer group insurance to their members. Group Insurance refers to a method of marketing standard forms of insurance, such as life insurance, whereby a master policy is issued to the party negotiating the contract with the insurer (frequently an employer), and certificates of partici pation are issued to the individual insured members of the group (frequently employees)." John F. Dobbyn, Insurance Law in a Nutshell 13 (2d ed. 1989).

group annuity An annuity payable to members of a group, esp. employees, who are covered by a single annuity contract, such as a group pension plan.

group annuity- See ANNUITY.

group art unit Patents. A U.S. Patent and Trademark Office division consisting of patent examiners who specialize in a particular invention's subject matter.

group boycott 1. CONCERTED REFUSAL TO DEAL. 2. A type of secondary boycott by two or more competitors who refuse to do business with one firm unless it refrains from doing business with an actual or potential competitor of the boycotters. A group boycott can violate the Sherman Act and is analyzed under either the per se rule or the rule of reason, depending on the nature of the boycott. See PER SE RULE; Rt:LE OF REASOK "Since early in this century, courts have interpreted Section 1 [of the Sherman Act] to limit the ability of competing firms to agree not to deal with or to isolate another firm. Unlike many-cartels, where all competitors voluntarily join to fix prices (and share monopoly rewards), concerted refusals to deal usually involve a subset of all market participants who band together to gain market power by destroying or coercing their rivals. Such organized refusals to deal with a particular firm are usually given the pejorative label of 'group boycotts." Ernest Gellhorn & William E. Kovacic, Antitrust Law and Economics in a Nutshell 204 (4th ed. 1994).

group boycott- See BOYCOTT.

group director The person responsible for directing the operations of an examining group within the U.S. Patent and Trademark Office.

group insurance See INSURANCE.

group libel See LIBEL.

group litigation A set of lawsuits on behalfof or against numerous persons recognized as one litigating entity, such as a civil-rights group.

group policy See master policy under INSURANCE POLICY.

group policy See master policy.

grouping-of-contacts theory See CENTER-OF-GRAVITY DOCTRINE.

growing crops Crops that are in the process of growth. Growing crops are goods under VCC § 2-105(1). Judicial decisions vary on the growth stage at which a crop becomes a growing crop and on whether pas· turage grass is a growing crop. Cf. FARM PRODUCT.

growing crops- See CROPS.

growing-equity mortgage See MORTGAGE.

growth The gain, increase, or expansion in value of securities or of a business.

growth company A company whose earnings have increased at a rapid pace and that usu. difects a high proportion of income back into the business.

growth company- See COMPANY.

growth fund See MUTUAL FUND.

growth industry An industry or business sector whose revenues and earnings are rising at a faster rate than average.

growth management Land-use planning. The regulation of a community's rate of growth through zoning ordinances, impact fees, and other measures. See ZONING.

growth stock See STOCK.

growth stock 1. Stock issued by a growth company. Because a growth company usu. reinvests a large share of its income back into the company, growth stock pays relatively low dividends, though its price usu. has a relatively high appreciation in market value over time. 2. Stock that has produced or is expected to produce above-average returns and usu. receives small or no dividends. - Also termed glamour stock.

gruarii (groo-air-ee-i), n. pl. The principal officers of a forest. These officers were charged with guarding and enforcing restrictions on the use of timber. See FOREST.

grubstake contract A contract between two parties in which one party provides the grubstake --money and supplies - and the other party prospects for and locates minerals on public land. Each party acquires an interest in the minerals as agreed to in the contract. Grubstake contracts are used chieflv in the western United States. In some states, such as Alaska, a request for grubstake money is considered the offer of a security and must be registered. Also termed grubstaking contract.

grubstake contract- See CONTRACT.

grubstaking contract See grubstake contract under CONTRACT.

grundnorm See basic norm under NORM.

grundy tariff See SMOOT-HAWLEY TARIFF ACT.

GRUT abbr. GRANTOR-RETAINED UNITRUST.

GSA abbr. GENERAL SERVICES ADMINISTRATION.

GST supertrust See dynasty trust under TRUST.

guarantee (gar-an-tee), n. 1. The assurance that a contract or legal act will be duly carried out. 2. GUARANTY (1). "In practice, guarantee, n., is the usual term, seen often, for example, in the context of consumer warranties or other assurances of quality or performance. Guaranty, in contrast, is now used primarily in financial and banking contexts in the sense "a promise to answer for the debt of another." Guaranty is now rarely seen in nonlegal writing, whether in G.B. or in the u.s: Bryan A. Garner, A Dictionary of Modern Legal Usage 394 (2d ed. 1995). 3. Something given or existing as security, such as to fulfill a future engagement or a condition subsequent. 4. One to whom a guaranty is made. - Also spelled guaranty.

guarantee- 1. To assume a suretyship obligation; to agree to answer for a debt or default. 2. To promise that a contract or legal act will be duly carried out. 3. To security to.

guarantee clause 1. A provision in a contract, deed, or mortgage by which one person promises to pay the obligation of another. 2. (cap.) U.S. Const. art. IV, § 4, under which the federal government ensures for the states both a republican form of government and protection from invasion or internal insurrection. The U.S. Supreme Court has consistently treated claims under the Guarantee Clause as nonj~sticiable political questions. See Pacific States Tel. & Tel. Co. v. Oregon, 223 U.S. 11S, 82 S.Ct. 224 (1912).

guarantee of title A warranty that the title to a piece of real property is vested in a particular person, given by a title company or abstract company, and based on a title searcher's opinion of the status of the property's title. The guarantee is usu. backed by insurance to cover damages resulting from the title searcher's oversight or negligence in finding recorded legal instruments. Cf. title insurance under INSURANCE.

guarantee stock See STOCK.

guarantee stock A fixed, nonwithdrawal investment in a building-and-Ioan association. This type of stock guarantees to all other investors in the association a fixed dividend or interest rate. See BUILDING-ANDLOAN ASSOCIATION.

guarantee treaty See TREATY (1).

guaranteed annual wage plan A wage-payment method in which the employer agrees either to pay employees a predetermined minimum sum each year or to provide a minimum number of hours of employment each year. A wide variety of guaranteed annual wage plans are used. For example, an employer may agree to pay employees wages for each week in the year, even though work may not be available at certain times of the year. The purpose of such a plan is to provide a stable labor force year-round.

guaranteed bond 1. A bond issued by a corporation and guaranteed by a third party . This type of bond is common among railroads. Also termed endorsed bond; assumed bond; joint bond. 2. A bond issued by a subsidiary corporation whose parent corporation guarantees the principal and interest payments.

guaranteed bond- See BOND (3).

guaranteed investment contract See INVESTMENT CONTRACT.

guaranteed investment contract An investment contract under which an institutional investor invests a lump sum (such as a pension fund) with an insurer that promises to return the principal (the lump sum) and a certain amount of interest at the contracts end. -- Abbr. GIC.

guaranteed stock Preferred stock on which a dividend is guaranteed by someone (usu. a parent corporation) other than the issuer.

guaranteed stock See STOCK.

guaranteed-purchase contract See guaranteed-sale contract under CONTRACT.

guaranteed-sale contract A contract between a realestate agency and a property owner in which the agency agrees to buy the property at a guaranteed price after a specified length of time if it has not been sold under the listing agreement. The guaranteed price is usu. a substantial discount from the listed price. Also termed guaranteed-purchase contract.

guaranteed-sale contract- See CONTRACT.

guarantor One who makes a guaranty or gives security for a debt. While a surety's liability begins with that of the principal, a guarantor's liability does not begin until the principal debtor is in default. Cf. SURETY (1). "A guarantor either guarantees payment or collection, depending on the words used. Payment guaranteed' or equivalent words added to a signature mean the signer will pay the instrument if it is not paid when due without a need for the holder to resort to another party. 'Collection guaranteed' means resort must first be had to others." Fred H. Miller & Alvin C. Harrell, The Law of Modem Payment Systems § 5.02, at 195 (2003).

guarantor of collectibility One who guarantees a debtor's solvency and is under a duty to pay only if the creditor is unable to collect from the principal debtor after exhausting all legal remedies, including demand, suit, judgment, and any supplementary proceedings.

guarantor of payment One who guarantees payment of a negotiable instrument when it is due without the holder first seeking payment from another party. A guarantor of payment is liable only if "payment guaranteed" or equivalent words are added to the guarantor's indorsement.

guarantor trust See TRUST.

guaranty (gar-an-tee), 1. A promise to answer for the payment of some debt, or the performance of some duty, in case of the failure of another who is liable in the first instance. The term is most common in finance and banking contexts. While a warranty relates to things (not persons), is not collateral, and need not be in writing, a guaranty is an undertaking that a person will payor do some act, is collateral to the duty of the primary obligor, and must be in writing. On the spelling ofguaranty vs. guarantee, see the quotation at GUARANTEE (2). Also termed guaranty contract. "Both guaranty and warranty are undertakings by one party to another to indemnify the party assured against some possible default or defect. But a guaranty relates to the future, as a collateral promise designed to protect the promisee from loss in case another fails to perform his duty. A warranty relates to the present or past, and is an independent promise designed to protect the promisee from loss in the event that the facts warranted are not as the promisor states them to be when the contract is made. A warranty is broken as soon as it is made if the facts are not as represented, and is enforceable though oral; whereas a guaranty is not breached until a future default occurs, and is unenforceable unless in writing." Laurence P. Simpson, Handbook on the Law of Suretyship 23 (1950). "A transaction of guaranty involves at least three parties: a promisor, a creditor (the person to whom the promise is made), and a debtor although at the time the promise is made, the person denominated the creditor' need not have extended the credit to the person denominated as the 'debtor.' The usual guaranty situation arises when the promisor makes a promise to the creditor either as to the solvency of the debtor or as to the payment of the debt." 38 Am. Jur. 2d Guaranty$ 1, at 996 (1968).

guaranty company See surety company under COMPANY.

guaranty bond A bond combining the features of a fidelity and a surety bond, securing both payment and performance.

guaranty bond- See BOND (2).

guaranty company See surety company.

guaranty contract See GCARANTY (1).

guaranty contract- See GUARANTY (1).

guaranty fund A private deposit-insurance fund, raised primarily by assessments on banks, and used to pay the depositors of an insolvent bank. Guaranty funds preceded the FDIC's federal-deposit insurance, which began in 1933, though many funds continued until the savings-and-Ioan crisis in the 1980s. Massachusetts has a guaranty fund for uninsured deposits (deposits above $100,000) that are not covered by federal-deposit insurance.

guaranty fund- See FUND (1).

guaranty insurance See INSURANCE.

guaranty insurance (gar-an-tee). An agreement to cover a loss resulting from anothers default, insolvency, or specified misconduct. Also termed surety insurance. The term guaranty insurance is generic in its scope and Signification, and embraces within it those subsidiary species of insurance contracts known as fidelity, commerCial, and judicial insurances .... In legal acceptation guaranty insurance is an agreement whereby one party (called the insurer) for a valuable consideration (termed the premium) agrees to indemnify another (called the insured) in a stipulated amount against loss or damage arising through dishonesty, fraud, unfaithful performance of duty or breach of contract on the part of a third person ... sustaining a contractual relationship to the party thus indemnified." Thomas Gold Frost, A Treatise on Guaranty Insurance § 1, at 11 (2d ed. 1909).