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capitalization rate The interest rate used in calculating the present value of future periodic payments. Also termed cap rate; income yield.

capitalization ratio The ratio between the amount of capital raised and the total capitalization of the firm. Also termed capital ratio.

capitalize 1. To convert (earnings) into capital. 2. To treat (a cost) as a capital expenditure rather than an ordinary and necessary expense. 3. To determine the present value of (long-term income). 4. To supply capital for (a business).

capitalized expense See EXPENSE.

capitalized expense- An amortized expense.

capital-risk test A method of determining whether a transaction constitutes an investment contract (subject to securities laws), whereby if a substantial portion of the capital used by a franchiser to start its operations is provided by a franchisee, then the transaction is treated as an investment contract. Cf. RISK-CAPITAL TEST.

capital-stock tax See TAX.

capital-stock tax 1. A tax on capital stock in the hands of a stockholder. 2. A state tax for conducting business in the corporate form, usu. imposed on out-of-state corporations for the privilege of doing business in the state. The tax is usu. assessed as a percentage of the par or assigned value of a corporations capital stock.

capitaneus (kap-i-tay-nee-as). [Law Latin "tenant in chief"] 1. A tenant in capite; one who holds title directly from the king. Also termed cataneus. 2. Maritime law. A ship captain or naval commander. 3. A ruler or leader.

capitated Of or relating to a healthcare system that gives a medical-care provider a fixed fee per patient regardless of the treatment required.

capitation 1. See poll tax under TAX. 2. A method of paying a healthcare provider based on the number of members in a health-benefit plan that the provider contracts to treat. The health plan's sponsor agrees to pay a fixed amount per person each period, regardless of what services are provided.

capitation tax See poll tax under TAX.

capitation tax See poll tax.

capitis aestimatio (kap-i-tis es-ti-may-shee-oh). [Latin "valuing of a head"], A monetary estimate of a person's life, made to assess a penalty for the person's slaying. See WERGILD.

capitis deminutio (kap-His dem-i-n[y]oo-shee-oh). [Latin "reduction of status"] Roman law. A diminution or alteration of a person's legal status. Also spelled capitis diminutio. See DE CAPITE MINUTIS. "Capitis deminutio is the destruction of the 'caput' or legal personality. Capitis deminutio, so to speak, wipes out the former individual and puts a new one in his place, and between the old and the new individual there is, legally speaking, nothing in common. Ajuristic personality may be thus destroyed in one of three ways: (1) by loss of the status libertatis. This is the capitis deminutio maxima; (2) by loss of the status civitatis. This is the capitis deminutio media (magna); (3) by severance from the agnatic family. This entails capitis deminutio minima." Rudolph Sohm, The Institutes: A Textbook of the History and System of Roman Private Law 178-79 Uames Crawford Ledlie trans., 3d ed. 1907).

capitis deminutio minor (kap-i-tis dem-i-n[y]oo-shee-oh mi-nar). [Latin "minor reduction of status"] Roman law. The diminution ofa person's legal status involving a loss of citizenship but not of freedom. Under the Empire, banishment for life to an island or other restricted area had this effect. Also termed capitis deminutio media.

capitis deminutio maxima (kap-i-tis dem-i-n[y]oo-shee-oh mak-si-ma). [Latin "maximum reduction of status"], The diminution of a person's legal status as a result of being reduced to slavery.

capitis deminutio minima (kap-i-tis dem-i-n[y]oo-shee-oh min-i-ma). [Latin "minimal reduction of status"] Roman law. The diminution of a person's legal status involving a change of family, while both citizenship and freedom were retained.

capitula (ka-pich-a-Ia). [Law Latin "chapters"], 1. Collections oflaws or ordinances organized under various headings. Also termed capitulary. 2. Chapters or assemblies of ecclesiastical persons.

capitula coronae (ka-pich-a-Ia ka-roh-nee). [Latin "chapters of the Crown"], A more detailed form of the articles of the eyre. See ARTICLES OF THE EYRE.

capitula de judaeis (ka-pich-a-Ia dee joo-dee-is). [Latin "chapters on the Jews"], 1. Laws concerning the Jews. 2. Questions posed by the justices in eyre to determine the amount a Jew would pay to receive the king's protection and a license to conduct business. The capitula de judaeis reflected the pervasive antiSemitism of medieval England. Cf. ARTICLES OF THE EYRE.

capitula itineris (ka-pich-a-la or I-tin-a-ris). [Law Latin "chapters of the eyre"] See ARTICLES OF THE EYRE.

capitulary (ka-pich-a-Ier-ee). [Latin "chapter or section (of a code), 1. Any orderly and systematic collection or code oflaws. See CAPITULA (1), 2. Hist. A law or series oflaws enacted by a Frankish king, esp. Charlemagne, dealing esp. with ecclesiastical affairs.

capitulation (ka-pich-a-lay-shan), 1. The act of surrendering or giving in. 2. Int'llaw. An agreement to surrender a fortified place or a military or naval force . A commander in control may generally make such an agreement for the place or force. 3. An agreement between a Christian state and a non-christian one (such as the Ottoman Empire) giving subjects of the former certain privileges in the territory of the latter. 4. Hist. International law. A special, usu. nonreciprocal, right established by a treaty through which one nation could exercise jurisdiction over its citizens and their property within the territory of another nation . Capitulations were a common feature of trade treaties in particular because merchants often accumulated wealth in foreign nations. Capitulations became disfavored before World War I and were gradually abolished during the 20th century. capitulate, vb. capitulatory, adj.

capj See chief administrative patent judge under JUDGE.

capper One who solicits business for an attorney. See BARRATRY (1); RUNNER (2). 2. Slang. A person who acts as a lure for others (as in a gambling or confidence game). Also termed (in sense 2) stool pigeon.

caprice (ka-prees), 1. Arbitrary or unfounded motivation. 2. The disposition to change one's mind impulsively.

capricious (ka-prish-as), 1. (Of a person) characterized by or gUided by unpredictable or impulsive behavior. 2. (Of a decree) contrary to the evidence or established rules of law. Cf. ARBITRARY.

capta CHILD ABUSE PREVENTION AND TREATMENT ACT.

captain-of-the-ship doctrine In medical-malpractice law, the doctrine imposing liability on a surgeon for the actions of assistants who are under the surgeon's control but who are employees of the hospital, not the surgeon.

captain's mast See MAST (1).

captation (kap-tay-shan). Coercion ofa testator resulting in the substitution of another person's desires for those of the testator .The term formerly applied to the first stage of a trance. Cf. UNDUE INFLUENCE.

captator (kap-tay-tar). A person who obtains or tries to obtain a gift or legacy through artifice. See UNDUE INFLUENCE.

captio (kap-shee-oh). 1. An arrest of a person, or a seizure of a thing. 2. The holding of court.

caption 1.The introductory part of a court paper stating the names of the parties, the name of the court, the docket or file number, and a description of the paper. Fed. R. Civ. P. lO(a). Cf. STYLE (1). 2. The arrest or seizure a person by legal process. 3. See HEADING.

captive 1. A person who is unlawfully seized and held by another. Cf. PRISONER. 2. PRISONER OF WAR. 3. An animal, esp. a wild one, that is caught and kept confined.

captive insurance 1. Insurance that provides coverage for the group or business that established it. 2. Insurance that a subsidiary provides to its parent company, usu. so that the parent company can deduct the premiums set aside as loss reserves.

captive insurance See INSURANCE.

captive insurance company A company that insures the liabilities of its owner. The insured is usu. the sole shareholder and the only customer of the captive insurer. Also termed captive insurer.

captive insurance company See INSURANCE COMPANY.

captive insurer See captive insurance company under INSURANCE COMPANY.

captive law firm See LAW FIRM.

captive law firm A law firm staffed by employees of an insurance company. These lawyers typically defend insureds in lawsuits covered under the insurer"s liability policies. The insurer"s use ofa captive firm to defend an insured raises ethical questions about whether the lawyers will act in the insured"s best interests. Often shortened to captive firm.

captive-audience doctrine 1. The principle that when the listener cannot, as a practical matter, escape from intrusive speech, the speech can be restricted. 2. Labor law. The rule that prohibits either party to a union election from making a speech on company time to a mass assembly of employees within 24 hours ofan election. Also termed captive-audience rule.

capture See RULE OF CAPTURE.

capture-and-hold rule Oil & gas. For royalty-calculation purposes, the doctrine that "production" occurs when oil or gas is pumped to the surface and stored, whether at the wellhead or elsewhere on the leased property. Cf. MARKETABLE- PRODUCT RULE.

caput (kap-at), [Latin "head"] 1. A head, chief, or principal person. 2. Roman law. A person. 3. Roman law. A person's condition or status. "A 'natural,' as opposed to an 'artificial,' person is such a human being as is regarded by the law as capable of rights or duties: in the language of Roman law as having a 'status.' , , , Besides possessing this general legal capacity, or status, a man may also possess various special capacities, such as the 'tria capita' of liberty, citizenship, and family rights, A slave having, as such, neither rights nor liabilities, had in Roman law, strictly speaking, no 'status,' 'caput,' or 'persona.' ... It must however be remembered that the terms 'persona' and 'caput' were also used in popular language as nearly equivalent to 'homo,' and in this sense were applied to slaves as well as to freemen." Thomas E, Holland, The Elements ofJurisprudence 80-81 (4th ed. 1888),

caput comitatus (kap-at kom-a-tay-tas), [Latin "head of the county"], The head of a county; a sheriff.

caput gerat lupinum (kap-at jeer-at loo-pI-nam). [Latin "let him bear the head of a wolf"], An outlawed felon considered a pariah a lone wolf open to attack by anyone. See OUTLAWRY. "He who breaks the law has gone to war with the community; the community goes to war with him. It is the right and duty of every man to pursue him, to ravage his land, to burn his house, to hunt him down like a wild beast and slay him; for a wild beast he is; not merely is he a 'friendless man,' he is a wolf. , , . Caput gerat lupinum, , in these words the court decreed outlawry," 2 Frederick Pollock & Frederic W, Maitland, The History of English Law Before the Time of Edward 1449 (2d ed, 1899),

caput mortuum A matter or thing that is void as to all persons and for all purposes.

car trust certificate See EQUIPMENT TRUST CERTIFICATE.

carcanum (kahr-kay-nam). "iron collar, pillory"], A prison or workhouse.

carcelage (kahr-sa-lij). [fr. Latin carcer "prison"], Prison fees.

cardinal-change doctrine The principle that if the government makes a fundamental, unilateral change to a contract beyond the scope of what was originally contemplated, the other party (usu. a contractor) will be released from the obligation to continue work under the contract. A contractor's allegation of cardinal change is essentially an assertion that the govenment has breached the contract.

cardo controversiae (kahr-doh kon-tra-var-shee-ee). [Law Latin], The hinge of the controversy; the main point of a controversy.

care (bef. 12c), 1. Serious attention; heed <written with care>. 2. Under the law of negligence or of obligations, the conduct demanded of a person in a given situation, Typically, this involves a person's giving attention both to possible dangers, mistakes, and pitfalls and to ways of minimizing those risks <standard of care>. See DEGREE OF CARE; REASONABLE PERSON.

career (kahr-sar), [Latin "jail, prison"], A prison or jail, esp. one used to detain rather than punish. Career, as used in English law and Roman law, usu, referred to a jail used as a place of detention during trial or after sentence pending execution, rather than as a place of punishment. The modern term incarceration derives from this word.

career criminal See RECIDIVIST.

career criminal- See RECIDIVIST.

career offender Under the federal-sentencing guidelines, an adult who, after being convicted of two violent felonies or controlled substance felonies, commits another such felony. u.s. Sentencing Guidelines Manual § 4Bl.l.

career offender See OFFENDER.

career vice-consul See VICE-CONSUL.

caregiver A person, usu. not a parent, who has and exercises custodial responsibility for a child or for an elderly or disabled person. Also termed caretaker; custodian. See RESIDENTIAL RESPONSIBILITY.

careless (bef. 12c) 1. (Of a person) not exercising reasonable care. 2. (Of an action or behavior) engaged in without reasonable care. Cf. RECKLESS.

carelessness (bef. 12c) 1. The fact, condition, or instance of a person's either not having done what he or she ought to have done, or having done what he or she ought not to have done; heedless inattention. 2. A person's general disposition not to do something that ought to be done. "The word 'carelessness' as a synonym for negligence can be committed by those who care deeply. A man may take all the care of which he is capable, and yet be accounted negligent for failing to reach the objective standard. He may honestly ... believe that the facts are such that he is not imperilling anyone; but he may be held to have been negligent in arriving at that belief. An incompetent driver may be convicted of driving 'without due care and attention' even though he was doing his level best. The careless person is the person who does not take the care he ought to take: never mind whether he felt careful. He can be held to be negligent in making a perfectly honest mistake." Glanville Williams, Textbook of Criminal Law 44-45 (1978).

caretaker See CAREGIVER.

caretaking functions A parent's or caregiver's task that either involves interaction with a child or directs others' interaction with a child . Some caretaking functions include feeding and bathing a child, guiding the child in language and motor-skills development, caring for a sick child, disciplining the child, being involved in the child's educational development, and giving the child moral instruction and guidance. Principles of the Law of Family Dissolution: Analysis and Recommendations § 2.03 (ALI, Tentative Draft No. 3, pt. I, 1998). Cf. PARENTING FUNCTIONS.

cargo Goods transported by a vessel, airplane, or vehicle; FREIGHT (1).

cargo insurance See INSURANCE.

cargo insurance An agreement to pay for damage to freight damaged in transit.

carjacking The forcible theft ofa vehicle from a motorist; the unlawful commandeering of an automobile. 18 USCA § 2119. -carjack, vb.

carnal abuse See sexual abuse (1).

carnal abuse- See sexual abuse (1) under ABUSE.

carnal knowledge Sexual intercourse, esp. with an underage female. Sometimes shortened to knowledge. "The ancient term for the act itself was 'carnal knowledge' and this is found in some of the recent cases and statutes. The phrase 'sexual intercourse,' more common today apart from legal literature, is also found in recent cases and statutes. Either term, when the reference is to rape, is sometimes coupled with the word 'ravish.' And unlawful intercourse with a girl under the age of consent is often characterized as 'carnal knowledge and abuse.'" Rollin M. Perkins & Ronald N. Boyce, Criminal Law 201 (3d ed.1982).

carnalis copula See SEXUAL RELATIONS (1).

carnet (kahr-nay). A customs document allowing an item (esp. an automobile) to be exported temporarily from one country into another country.

carriage Transport of freight or passengers.

carriage and insurance paid to A mercantile-contract term allocating the rights and duties of the buyer and the seller of goods with respect to delivery, payment, and risk ofloss, whereby the seller must (1) clear the goods for export, (2) pr~cure and pay for insurance against the buyer's risk of damage while the goods are in carriage, (3) deliver the goods to the buyer's chosen carrier, and (4) bear the costs of carriage (apart from import duties) to the named destination. When the goods are delivered to the carrier, the seller's delivery is complete; the risk ofloss then passes to the buyer. Any mode of transportation can be used to carry the goods. Abbr. CIP. Cf. CARRIAGE PAID TO.

carriage of goods by sea act Maritime law. A 1936 federal statute regulating a carrier's liability for the loss or damage, and sometimes the delay, of ocean cargo shipped under a bill oflading. 46 USCA §§ 1300-15. The Act defines many of the rights and responsibilities of both the issuers and the holders of ocean bills of lading. Abbr. COGSA. "The Carriage of Goods by Sea Act (COGSA), the domestic enactment of the international convention popularly known as the Hague Rules, allocates the risk of loss for cargo damage that occurs during ocean transportation to or from the United States under contracts evidenced by bills of lading and similar documents of title. It is the central statute in commercial admiralty, governing over $200 billion worth of American foreign commerce annually. The other major maritime countries of the world have also adopted the Hague Rules to govern their international ocean commerce." Michael F. Sturley, The Fair Opportunity Requirement Under COGSA Section 4(S): A Case Study in the Misinterpretation of the Carriage ofGoods by Sea Act, 19 J. Mar. L. & Com. 1, 1-2 (1988).

carriage paid to A mercantile-contract term allocating the rights and duties of the buyer and the seller of goods with respect to delivery, payment, and risk of loss, whereby the seller must (1) clear the goods for export, (2) deliver them to the buyer's chosen carrier, and (3) pay the costs of carriage (apart from import duties) to the named destination . When the goods are delivered to the carrier, the seller's delivery is complete; the risk of loss then passes to the buyer. Any mode of transportation can be used to carry the goods. Abbr. CPT. Cf. CARRIAGE AND INSURANCE PAID TO.

carried interest 1. The share of any profits produced by a partnerships investment, paid to the general partner as compensation tor managing the investment. The general partner often contributes little or no capital to acquire the investment but gains an interest in it by providing time and skill. The general partners interest in the property is "carried" with the property until it is liquidated. 2. Oil & gas. In an oil-and-gas lease, a fractional interest that is free of some or all costs of exploring, drilling, and completing the well. The owner of a carried lease may earn royalties on production but does not have a working interest, at least until all costs are recouped by the working-interest owner or owners, and often until some multiple of those costs are paid.

carried interest See INTEREST (2).

carrier 1. An individual or organization (such as a shipowner, a railroad, or an airline) that contracts to transport passengers or goods for a fee. Cf. SHIPPER.

carrier's lien See LIEN.

carroll doctrine The principle that a broadcast licensee has standing to contest any grant of a competitive license by the Federal Communications Commission because the grant could lead to a diminution in broadcast service by causing economic injury to an existing licensee. Carroll Broadcasting Co. v. FCC, 258 F.2d 440 (D.C. Cir. 1958).

carry 1. To sustain the weight or burden of; to hold or bear <more weight than a single person can carry>. 2. To conveyor transport <carrying the coal from one state to another>. 3. To possess and convey (a firearm) in a vehicle, including the locked glove compartment or trunk of a car <he carried the guns in his trunk>. The United States Supreme Court adopted this definition in interpreting the phrase carries a firearm as used in a statute imposing a mandatory prison term on a person who uses or carries a firearm while commit ting a drug-trafficking crime. Muscarello v. U.S., 524 U.S. 125, 118 S.Ct. 1911 (1998). 4. In a figurative sense, to possess or hold (insurance, etc.) <the decedent did not carry life insurance>. 5. Parliamentary law. To adopt.o In this sense, the verb may be either intransitive <the motion carries> or transitive (in a passive construction) <the motion is carried>. See ADOPTION (5). 6. To provide funds or credit for the payment of (stock, etc.), often as an advance, for an agreed-on period <the investor carried the stock purchases for eight months>. 7. To absorb the cost of holding or having, usu. temporarily <the business will carry the debt for another quarter>.

carry away To take or move (stolen property, etc.). The traditional count for larceny was that the defendant "did steal, take, and carry away" the property. A "carrying away" can be a slight movement of the property. See ASPORTATION.

carryback An income-tax deduction (esp. for a net operating loss) that cannot be taken entirely in a given period but may be taken in an earlier period (usu. the previous three years). Also termed loss carryback; tax-loss carryback. Cf. CARRYOVER.

carryforward See CARRYOVER.

carrying away See ASPORTATION.

carrying back the date of invention See ANTEDATING OF A PRIOR-ART REFERENCE.

carrying charge 1. A cost, in addition to interest, paid to a creditor for carrying installment credit. 2. Expenses incident to property ownership, such as taxes and upkeep.

carrying cost See COST (1).

carrying cost- 1. Accounting. The variable cost of stocking one unit of inventory for one year. Carrying cost includes the opportunity cost of the capital invested in the inventory. - Also termed cost of carrying. 2. A current charge or noncapital expenditure made to prevent the causing or accelerating of the termination of a defeasible estate, as well as the sums spent on repairs required by the duty to avoid permissive waste.

carrying value See BOOK VALUE (1).

carryover An income-tax deduction (esp. for a net operating loss) that cannot be taken entirely in a given period but may be taken in a later period (usu. the next five years). Also termed loss carryover; tax-loss carryover; carryforward; loss carryforward; tax-loss carryforward. Cf. CARRYBACK.

carryover basis The recipient's basis in property transferred by gift or in trust, equaling the transf:' eror's basis. - Also termed substituted basis.

carryover basis- See BASIS.

carta (kahr-ta). [Latin], A charter, deed, or other written instrument.

carta de foresta See CHARTA DE FORESTA.