labor certification
A required procedure for many foreign nationals who have a job offer from a U.S. employer. In many cases, a job offer alone is not enough to qualify a potential immigrant for a green card. First, the employer must prove that there are no qualified U.S. workers available and willing to take the job. To do so, the employer must turn to the U.S. Department of Labor for a labor certification.

landlord
The owner of any real estate, such as a house, apartment building or land, that is leased or rented to another person, called the tenant.

Lanham Act
The main federal statute governing trademarks, service marks and unfair competition. Its two basic purposes are to eliminate deception and unfair competition in the marketing of goods and services, and to protect marks against the use of confusingly similar marks by others.

lapse
Under a will, the failure of a gift of property. A gift lapses when the beneficiary dies before the person who made the will, and no alternate has been named. Some states have anti-lapse statutes, which prevent gifts to relatives of the deceased person from lapsing unless the relative has no heirs of his or her own. A lapsed gift becomes part of the residuary estate.

larceny
Another term for theft. Although the definition of this term differs from state to state, it typically means taking property belonging to another with the intent to permanently deprive the owner of the property. If the taking is non forceful, it is larceny; if it is accompanied by force or fear directed against a person, it is robbery, a much more serious offense.

lawful issue
Formerly, statutes governing wills used this phrase to specify children born to married parents, and to exclude those born out of wedlock. Now, the phrase means the same as issue and "lineal descendant."

lease
An oral or written agreement (a contract) between two people concerning the use by one of the property of the other. A person can lease real estate (such as an apartment or business property) or personal property (such as a car or a boat). A lease should cover basic issues such as when the lease will begin and end, the rent or other costs, how payments should be made, and any restrictions on the use of the property. The property owner is often called the "lessor," and the person using the property is called the "lessee."

lease option
A contract in which an owner leases her house (usually for one to five years) to a tenant for a specific monthly rent, and which gives the tenant the right to buy the house at the end of the lease period for a price established in advance. A lease option is often a good arrangement for a potential home buyer because it lets him move into a house he may buy without having to come up with a down payment or financing at that time.

legacy
An outdated legal word meaning personal property left by a will. The more common term for this type of property is bequest. Compare devise.

legal action
See action.

legal custody
The right and obligation to make decisions about a child's upbringing, including schooling and medical care. Many states typically have both parents share legal custody of a child. Compare physical custody.

legal papers
Documents containing a statement of legal status, identity, authority or ownership, or providing evidence of some type of obligation. Such documents include wills, deeds, leases, titles, birth certificates , and contracts. Legal papers may also refer to documents, such as a complaint or summons, prepared in order to pursue a legal cause of action.

legal risk placement
A type of adoption used by agencies to keep a child out of foster care during the adoption process. The child is placed with the adopting parents before the birthmother has legally given up her rights to raise the child. If she then decides not to relinquish her rights, the adopting parents must give the child back. This is a risk for the adopting parents, who may lose a child to whom they've become attached.

legislative immunity
A legal doctrine that prevents legislators from being sued for actions performed and decisions made in the course of serving in government. This doctrine does not protect legislators from criminal prosecution, nor does it relieve them from responsibility for actions outside the scope of their office, such as the nefarious activities of former Senator Bob Packwood.

lemon
A car that gives you serious trouble soon after you buy it. To qualify under state "lemon laws," the defect must be substantial and must occur within a certain time or mileage period, usually 12,000 miles or one year. You usually have the option of getting a refund or a replacement vehicle for a lemon, though you may have to go to arbitration or court to exercise this option.

letters testamentary
The document given to an executor by the probate court, authorizing the executor to settle the estate according to either a will or the state's intestate succession laws.

lewd
Any conduct that is considered indecent or offensive. Today the term is often used when referring to pornography, prostitution and indecent exposure.

lex loci
Latin for the "law of the place." It means local law.

liability
(1) The state of being liable--that is, legally responsible for an act or omission. Example:Peri hires Paul to fix a broken pipe in her bathroom, but the new pipe bursts the day after Paul installs it, ruining the bathroom floor. This raises the issue of liability: Who is responsible for the damage? Peri claims that Paul is responsible, and sues him for the cost of hiring another plumber to fix the pipe and replacing the floor. Paul, in turn, claims that the pipe manufacturer is responsible, because they supplied him with faulty materials. Both Peri and Paul must prove their claims in court; if Paul and/or the manufacturer is found liable, one or both will have to pay damages to Peri. (2) Something for which a person is liable. For example, a debt is often called a liability.

liability insurance coverage
Compensation to third parties who are injured or whose property is damaged due to the fault of the insurance holder. You may have liability insurance for your car or your home, or to cover actions you take in the course of your profession. Liability polices are sometimes called "third-party policies."

liable
Legally responsible. For example, a person may be liable for a debt, liable for an accident due to careless behavior, liable for failing do something required by a contract or liable for the commission of a crime. Someone who is found liable for an act or ommission must usually pay damages or, if the act was a criminal one, face punishment. See also liability.

libel
An untruthful statement about a person, published in writing or through broadcast media, that injures the person's reputation or standing in the community. Because libel is a tort (a civil wrong), the injured person can bring a lawsuit against the person who made the false statement. Libel is a form of defamation , as is slander (an untruthful statement that is spoken, but not published in writing or broadcast through the media).

license (of invention, copyright or trademark)
A contract giving written permission to use an invention, creative work or trademark. A license provides a way to make money from your invention or creative work without having to manufacture and sell copies yourself. By licensing an invention or work to a company, you get money (often in the form of royalties) in return for allowing the company to use, produce and sell copies of your invention or work in the marketplace.

lien
The right of a secured creditor to grab a specific item of property if you don't pay a debt. Liens you agree to are called security interests, and include mortgages, home equity loans, car loans and personal loans for which you pledge property to guarantee repayment. Liens created without your consent are called nonconsensual liens, and include judgment liens (liens filed by a creditor who has sued you and obtained a judgment), tax liens and mechanics liens (liens filed by a contractor who worked on your house but wasn't paid).

life beneficiary
A person who receives benefits, under a trust or by will, for his or her lifetime. For an example, see AB trust.

life insurance
A contract in which an insurance company agrees to pay money to a designated beneficiary upon the death of the policy holder. In exchange, the policyholder pays a regularly scheduled fee, known as the insurance premiums. The purpose of life insurance is to provide financial support to those who survive the policyholder, such as family members or business partners. When the policyholder dies, the insurance proceeds pass to the beneficiaries free of probate, though they are counted for federal estate tax purposes. group life insurance Life insurance available through an employer or association that covers participating employees and members under one master insurance policy. Most group life insurance policies are term insurance policies, that terminate when the member or employee reaches a certain age or leaves the organization and do not accumulate any cash surrender value. term life insurance No-frills life insurance, with neither cash surrender value nor loan value (an amount that can be used as collateral for a loan). Term life insurance provides a pre-set amount of coverage if the policyholder dies during the period of time specified in the policy. Policyholders usually have the option to renew at the end of the term for the period of years specified in the policy. Unlike whole life insurance, premiums generally increase as the insured person gets older and the risk of death increases.universal life insurance A type of whole life insurance that offers some additional features and advantages. Like whole life insurance, universal life insurance accumulates cash value through investment of the premium payments. The unique feature of universal life insurance is that it has variable premiums, benefits and payment schedules, all of which are tied to market interest rates and the performance of the investment portfolio. Also, universal life plicies normally provide you with more consumer information. For example, you are told how much of your policy payments goes for insurance company overhead expenses, reserves and policy proceed payments, and how much is retained and invested for your savings. This information isn't usually provided with whole life policies.variable life insurance A type of whole life insurance in which the amount of death benefits varies, depending on the performance of investments. The insurance company places some or all of the fixed premium payments into an investment account; some companies let the insured person decide how the money is invested. The policyholder bears the risk of investment losses, though there is a guaranteed minimum benefit payment. One benefit of variable insurance is that interest and dividend income from the investment account is not taxed until it is paid out to the policyholder.variable universal life insurance A type of whole life insurance that provides greater potential for financial gain--and brings greater risks. Like universal life insurance, variable universal life insurance offers flexible premiums, payment schedules and benefits. But variable universal life policies are riskier because the premiums are invested in stocks, rather than more predictable money market accounts and bonds. Also called universal variable life insurance.whole life insurance Life insurance that provides coverage for the entire life of the policyholder, who pays the same fixed premium throughout his or her life. The policy builds up cash reserves that may be paid out to the policyholder when he or she surrenders or partially surrenders the policy or uses the cash reserves to fund low-interest loans. The annual increase in the cash value of the policy is not taxed. If the policyholder surrenders the policy, a portion of the payment is not taxable. Also called straight life insurance or ordinary life insurance.

life insurance avails
See avails.

life tenant
One who has a life estate in real property.

life-prolonging procedures
Medical procedures used to extend the life of someone who is terminally ill or permanently comatose. These procedures may include the administration of blood or blood products, cardio-pulmonary resuscitation (CPR), diagnostic tests, dialysis, antibiotics, surgery or a respirator. Also called life-sustaining procedures.

life-sustaining procedures
See life-prolonging procedures.

limited equity housing
An arrangement designed to encourage low-and moderate-income families to purchase housing, in which the housing is offered at an extremely favorable price with a low down payment. The catch is that when the owner sells, she gets none of the profit if the market value of the unit has gone up. Any profit returns to the organization that built the home, which then resells the unit at an affordable price.

limited liability
The maximum amount a business owner can lose if the business is subject to debts, claims or other liabilities. An owner of a limited liability company (LLC) or a person who invests in a corporation (a shareholder) generally stands to lose only the amount of money invested in the business. This means that if the business folds, creditors cannot seize or sell an owner's home, car, or other personal assets.

limited liability company (LLC)
A business ownership structure that offers its owners the advantage of limited liability (like corporations) and partnership-like taxation, in which profits are passed through to the owners and taxed on their personal income tax returns.

limited liability partnership (LLP)
A type of partnership recognized in a majority of states that protects a partner from personal liability for negligent acts committed by other partners or by employees not under his or her direct control. Many states restrict this type partnership to professionals, such as lawyers, accountants, architects and healthcare providers.

limited partnership
A business structure that allows one or more partners (called limited partners) to enjoy limited personal liability for partnership debts while another partner or partners (called general partners) have unlimited personal liability. The key difference between a general and limited partner concerns management decision making--general partners run the business, and limited partners, who are usually passive investors, are not allowed to make day-to-day business decisions. If they do, they risk being treated as general partners with unlimited personal liability.

limited personal liability
See limited liability.

limited power of attorney
See power of attorney.

lineal descendants
See issue.

lineup
A procedure in which the police place a suspect in a line with a group of other people and ask an eyewitness to the crime to identify the person he saw at the crime scene. The police are supposed to choose similar-looking people to appear with the suspect. If the suspect alone matches the physical description of the perpetrator, evidence of the identification can be attacked at trial. For example, if the robber is described as a Latino male, and the suspect, a Latino male, is placed in a lineup with ten white males, a witness' identification of him as the robber will be challenged by the defense attorney.

link
Any component of a web page that connects to another web page or another portion of the same web page. Clicking on underlined text or a graphic image activates most links. For example, if a user clicks on the words Financial Calculator or an image of a calculator, the user will be transported to a page that contains a calculator. Links are sometimes called "hyperlinks."

liquid assets
Business property that can be quickly and easily converted into cash, such as stock, bank accounts and accounts receivable.

liquidating partner
The member of an insolvent or dissolving partnership responsible for paying the debts and settling the accounts of the partnership.

lis pendens
(1) Latin for "a suit pending." The term may refer to any pending lawsuit. (2) A written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it. The notice is usually filed in the county land records office. Recording a lis pendens against a piece of property alerts a potential purchaser or lender that the property’s title is in question, which makes the property less attractive to a buyer or lender. After the notice is filed, anyone who nevertheless purchases the land or property described in the notice takes subject to the ultimate decision of the lawsuit.

litigation
The process of bringing and pursuing (litigating) a lawsuit.

living trust
A trust you can set up during your life. Living trusts are an excellent way to avoid the cost and hassle of probate because the property you transfer into the trust during your life passes directly to the trust beneficiaries after you die, without court involvement. The successor trustee--the person you appoint to handle the trust after your death--simply transfers ownership to the beneficiaries you named in the trust. Living trusts are also called "inter vivos trusts."

living will
A legal document in which you state your wishes about certain kinds of medical treatments and life-prolonging procedures. The document takes effect if you can't communicate your own healthcare decisions. A living will may also be called a healthcare directive, advance directive or directive to physicians.

LLC
See limited liability company.

LLP
See limited liability partnership.

loan broker
A person who specializes in matching home buyers with appropriate mortgage lenders. For a fee--often paid by the lender--a loan broker provides any easy and effective way to find the cheapest mortgage rates.

loan consolidation
The combining of a number of loans into a single new loan. Consolidation typically extends your repayment period and lowers your monthly payments, thereby greatly increasing the amount of interest you pay over the life of your loan.

loss damage waiver (LDW)
Rental car insurance that makes the rental car company responsible for damage to or theft of a rental car. This insurance is a major consumer ripoff, as it often duplicates coverage provided by the renter's regular car insurance and/or the credit card she uses to rent the car. Nevertheless, hard-sell practices by rental car agents often dupe people into buying LDWs they don't really need. LDW is also called "collision damage waiver."