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newsman s privilege See journalist s privilege (1).

newspaper prospectus A summary prospectus that the SEC allows to be disseminated through advertisements in newspapers, magazines, or other periodicals sent through the mails as second-class matter (though not distributed by the advertiser), when the securities involved are issued by a foreign national government with which the United States maintains diplomatic relations.

new-use claim A method claim for a new way of using an existing invention.

new-use invention Discovery of a new use for an existing invention. As long as the new use is nonobvious and actually useful- it may be patented. 35 USCA §§ 101-03.

new-value defense Bankruptcy. A defense to a suit to recover preferential payments whereby the transferee of the payments can reduce liability by the amount of consideration or value that the transferee provided to the transferor after a suspect transfer.

next devisee The devisee who receives the remainder of an estate in tail, as distinguished from the first devisee. See FEE TAIL.

next eventual estate An estate taking effect upon an event that terminates the accumulation of undisposed rents and profits; an estate taking effect when the existing estate terminates.

next presentation Eccles. law. In the law of advowsons, the right to present to the bishop a clerk to fill the first vacancy that arises in a church or other ecclesiastical office.

nil-dicit default judgment (nil di-sit). [Latin "he says nothing"]. A judgment for the plaintiff entered after the defendant fails to file a timely answer, often after the defendant appeared in the case by filing a preliminary motion. Often shortened to nihil dicit. - Also termed nihil-dicit default judgment; judgment by nil dicit.

nimble dividend A dividend paid out of current earnings when there is a deficit in the account from which dividends may be paid. Some state statutes prohibit nimble dividends.

nisi prius court See NISI PRIUS.

no evidence See NO EVIDENCE.

no-answer default judgment A judgment for the plaintiff entered after the defendant fails to timely answer or otherwise appear.

no-contest plea See NO CONTEST.

no-fault auto insurance An agreement to indemnify for a loss due to personal injury or property damage arising from the use of an automobile, regardless of who caused the accident.

no-fault divorce A divorce in which the parties are not required to prove fault or grounds beyond a showing of the irretrievable breakdown of the marriage or irreconcilable differences. The system of no- fault divorce has been adopted throughout the United States. By 1974,45 states had adopted no-fault divorce; by 1985, every state but New York had adopted some form of it. In New York - one of the last bastions offault grounds for divorce - the closest equivalent is a conversion divorce one year after legal separation or a legal-separation agreement. Cf. fault divorce; hotel divorce.

no-knock search A search of property by the police without knocking and announcing their presence and purpose before entry. A no-knock search warrant may be issued under limited circumstances, as when a prior announcement would probably lead to the destruction of the objects searched for, or would endanger the safety of the police or another person.

no-knock search warrant A search warrant that authorizes the police to enter premises without knocking and announcing their presence and purpose before entry because a prior announcement would lead to the destruction of the objects searched for or would endanger the safety of the police or another person. Cf. KNOCK-AND-ANNOUNCE RULE.

no-limit order An order to buy or sell securities with no limits on price. Cf. limit order.

nolo plea A plea by which the defendant does not contest or admit guilt. See Fed. R. Crim. P. l1(b); NOLO CONTENDERE.

no-merit brief See Anders brief

nominal account (nahm-a-nal). An income-statement accoun t that is closed into surplus at the end of the year when the books are balanced.

nominal asset An asset whose value is difficult to assess, such as a judgment or claim.

nominal capital The minimum value ofthe shares that a company is authorized by its association documents to issue. Also termed authorized capital.

nominal consideration Consideration that is so insignificant as to bear no relationship to the value of what is being exchanged (e.g., $10 for a piece of real estate). Such consideration can be valid, since courts do not ordinarily examine the adequacy of consideration (although they do often inquire into such issues as fraud and duress). - Also termed peppercorn. "Offers made in consideration of one dollar paid or promised are often irrevocable. The irrevocability of an offer may be worth much or little to the offeree, and the courts do not ordinarily inquire into the adequacy of the consideration bargained for. Hence a comparatively small payment may furnish consideration for the irrevoca· bility of an offer proposing a transaction involving much larger sums. But gross disproportion between the payment and the value of the option commonly indicates that the payment was not in fact bargained for but was a mere formality or pretense. In such a case there is no consid· eration .... Nevertheless, such a nominal consideration is regularly held sufficient to support a short-time option proposing an exchange on fair terms. The fact that the option is an appropriate preliminary step in the conclusion of a socially useful transaction provides a sufficient substantive basis for enforcement, and a signed writing taking a form appropriate to a bargain satisfies the desiderata of form. In the absence of statute, however, the bargaining form is essential: a payment of one dollar by each party to the other is so obviously not a bargaining transaction that it does not provide even the form of an exchange." Restatement (Second) of Contracts § 87 cmt. b (1979).

nominal damages 1. A trifling sum awarded when a legal injury is suffered but there is no substantial loss or injury to be compensated. 2. A small amount fixed as damages for breach of contract without regard to the amount of harm. Also termed contemptuous damages. Cf. substantial damages. "Nominal damages are damages awarded for the infraction of a legal right, where the extent of the loss is not shown, or where the right is one not dependent upon loss or damage, as in the case of rights of bodily immunity or rights to have one's material property undisturbed by direct invasion. The award of nominal damages is made as ajudicial declaration that the plaintiff's right has been violated." Charles T. Mcormick, Handbook on the Law of Damages § 20, at 85 (1935). "Nominal damages are awarded if the plaintiff establishes a breach of contract or a tort of the kind that is said to be 'actionable per se' but fails to establish a loss caused by the wrong. In the case of tort not actionable per se for example, negligence, if the plaintiff fails to establish a the action will be dismissed. The practical significance of a judgment for nominal damages is that the plaintiff thereby establishes a legal right. The judgment has the effect of a declaration of legal rights and may deter future infringements or may enable the plaintiff to obtain an injunction to restrain a repetition of the wrong. The obtaining of nominal damages will also, in many cases, entitle a plaintiff to costs .... [Also,] nominal damages might serve as a peg upon which to hang an award of exemplary damages." S.M. Waddams, The Law of Damages 477-78 (3d ed. 1997).

nominal partner A person who is held out as a partner in a firm or business but who has no actual interest in the partnership. Also termed ostensible partner; partner EJyestoppel.

nominal party A party to an action who has no control over it and no financial interest in its outcome; esp., a party who has some immaterial interest in the subject matter of a lawsuit and who will not be affected by any judgment, but who is nonetheless joined in the lawsuit to avoid procedural defects. An example is the disinterested stakeholder in a garnishment action. - Also termed formal party. Cf. real party in interest.

nominal rate The interest rate stated in a loan agreement or on a bond, with no adjustment made for inflation. Also termed coupon rate;face rate; stated rate; stated interest rate.

nominal sentence A criminal sentence in name only; an exceedingly light sentence.

nominate action (nom-i-nat). An action that is known by a name, such as a confessory action, a petitory action, or a possessory action. Cf. innominate action.

nominate contract (nom-a-nit). Civil law. A contract distingUished by a particular name, such as sale, insurance, or lease, the very use of which determines some of the rules governing the contract and the contractual rights of the parties, without the need for special stipulations. The contracts are generally divided into four types: (1) real (arising from something done), (2) oral (arising from something said), (3) literal (arising from something written), and (4) consensual (arising from something agreed to). La. Civ. Code art. 1914. Cf. innominate contract.

nominating committee A committee charged with identifying (and perhaps recruiting) and recommending a suitable candidate or candidates for election by a deliberative assembly. Also termed screening committee.

nominee account Securities. A brokerage account in which the securities are owned by an investor but registered in the name of the brokerage firm. The certificate and the records of the issuing company show the brokerage as the holder of record. But the brokerage records show the investor as the beneficial owner of the securities in the nominee account. Also termed street-name security.

non voluntary euthanasia Euthanasia of an incompetent, and therefore nonconsenting, person.

nonadmitted asset An asset that by law may not be included in evaluating the financial condition of an insurance company because it cannot be converted quickly into cash without a finandalloss. Cf. admitted asset.

nonancestral estate An estate from any source other than the owner's ancestors. Also termed nonancestral property.

nonancestral property See nonancestral estate under ESTATE (1).

nonapparent easement See discontinuous easement.

nonapparent servitude A servitude appurtenant that is not obvious because there are no exterior signs of its existence. An example is a prohibition against building above a certain height. cr. apparent servitude.

nonart rejection See formal rejection.

nonassertive conduct Nonverbal behavior that is not intended to be a statement, such as fainting while being questioned as a suspect by a police officer. Nonassertive conduct is not a statement under the hearsay rule, and thus it is admissible. Fed. R. Evid. 801.

nonassessable insurance Insurance in which the premium is set and the insurer is barred from demanding additional payments from the insured.

nonassessable stock Stock owned by a holder whose potential liability is limited to the amount paid for the stock and who cannot be charged additional funds to pay the issuers debts. Stock issued in the United States is usu. nonassessable.

nonbank bank A financial institution that either accepts demand deposits or makes commercial loans, but, unlike traditional banks, does not do both at the same time and therefore can avoid federal regula-tions on bank ownership Nonbank banks were esp. prolific in the 1980s, but amendments to the definition of a bank under federal law have essentially closed this loophole.

noncallable bond See noncallable security under SECURITY.

noncallable security A security that cannot be redeemed, or bought back, at the issuers option. Also termed (specif.) noncallable bond.

noncash charge A cost (such as depreciation or amortization) that does not involve an outlay of cash.

noncircumvention agreement See NONCIRCUMVENTION AGREEMENT.

nonclaim statute 1. STATUTE OF LIMITATIONS. 2. A law that sets a time limit for creditors to bring claims against a decedents estate. Unlike a statute of limitations, a nonclaim statute is usu. not subject to tolling and is not waivable.

noncommissioned officer An enlisted person in the Army, Air Force, or Marine Corps in certain pay grades above the lowest pay grade. Examples are sergeants and corporals.

noncompetition covenant A promise, usu. in a saleof-business, partnership, or employment contract, not to engage in the same type of business for a stated time in the same market as the buyer, partner, or employer. Noncompetition covenants are valid to protect business goodwill in the sale of a company. In other contexts, they are generally disfavored as restraints of trade: courts generally enforce them for the duration of the business relationship, but provisions that extend beyond the termination of that relationship must be reasonable in scope, time, and territory. Also termed noncompetition agreement; noncompete covenant; covenant not to compete; restriCtive covenant; promise not to compete; contract not to compete.

nonconforming goods Goods that fail to meet contractual specifications, allowing the buyer to reject the tender of the goods or to revoke their acceptance. DCC §§ 2-601, 2-608. See PERFECT-TENDER RULE.

noncontinuous easement See discontinuous easement.

noncontract demurrage Demurrage not provided by contract, but ordered by a court. Also termed damages for detention. "After the ... days on contract demurrage have expired, the charterer of course still remains liable for further delay, but the liability now is one for noncontract demurrage, which will be fixed by the court just as would any other unliquidated claim for damages. Non·contract demurrage may also be referred to as 'damages for detention.'" Grant Gilmore & Charles L. Black Jr., The Law of Admiralty § 4·8, at 212 (2d ed. 1975). 2. A charge due for the late return of ocean containers or other equipment.

noncontractual duty A duty that arises independently of any contract.

noncontributory pension plan A pension plan funded solely by the employer s contributions.

noncore proceeding See RELATED PROCEEDING.

noncumulative dividend A dividend that does not accrue for the benefit of a preferred shareholder if there is a passed dividend in a particular year or period. Cf. cumulative dividend.

noncumulative preferred stock Preferred stock that does not have to be paid dividends that are in arrears. Once a periodic dividend is omitted, it will not be paid. - Also termed noncumulative stock.

noncustodial interrogation Police questioning of a suspect who has not been detained and can leave at will. Miranda warnings are usu. not given before a noncustodial interrogation.

noncustodial parent In the child-custody laws of some states, a parent without the primary custody rights of a child; esp., the parent not awarded physical custody of a child in a divorce. The noncustodial parent is typically awarded visitation with the child. Also termed nonresidential parent; possessory conservator; absent parent. See PHYSICAL CUSTODY (2). Cf. custodial parent.

noncustodial sentence A criminal sentence (such as probation) not requiring prison time.

nondeadly force 1. Force that is neither intended nor likely to cause death or serious bodily harm; force intended to cause only minor bodily harm. 2. A threat of deadly force, such as displaying a knife. Also termed moderate force. Cf. deadly force.

nondelegable duty (non-del-a-ga-bal). 1. Contracts. A duty that cannot be delegated by a contracting party to a third party. If a contracting party purports to delegate the duty, the other party can rightfully refuse to accept performance by the third party. 2. Torts. A duty that may be delegated to an independent contractor by a principal, who retains primary (as opposed to vicarious) responsibility if the duty is not properly performed. For example, a landlord's duty to maintain common areas, though delegated to a service contractor, remains the landlord's responsibility if someone is injured by improper maintenance.

nondischargeable debt A debt (such as one for delinquent taxes) that is not released through bankruptcy.

nondisclosure clause See confidentiality clause.

nondisparagement clause 1. A contractual provision prohibiting the parties from publicly communicating anything negative about each other. 2. Family law. A provision in a divorce decree, marital settlement agreement, parenting agreement, or similar document prohibiting either parent from criticizing the other parent in the presence of their child or children.

nonelected claim A claim that has been withdrawn from consideration based on the examiner s finding that the application claims more than one invention. The applicant must elect to prosecute one invention. Other claims may either be abandoned or else be prosecuted separately under a divisional application. See RESTRICTION (4).

nonenablement rejection Rejection of a patent application claim on the ground that its specification does not teach enough to enable a person skilled in the art to make and use the invention. - Also termed lack-of-enablement rejection.

nonexclusive easement See common easement.

nonexempt property See NONEXEMPT PROPERTY.

nonfelonious homicide A killing that is legally either excusable or justifiable. See excusable homicide; justifiable homicide.

nonforfeiture option A policyholder s option, upon the lapse of premium payments, to continue an insurance policy for a shorter period than the original term, to surrender the policy for its cash value, to continue the policy for a reduced amount, or to take some other action rather than forfeit the policy.

nonfreehold estate Any estate in real property without seisin, such as an estate for years, from period to period, at will, or at sufferance; any estate except a fee simple, fee tail, or life estate.

nongermane amendment An amendment that adds an unrelated rider . A nongermane amendment is out of order in most ordinary assemblies and many legislative bodies. But some legislative bodies, in jurisdictions where legislation may embrace more than one subject, allow nongermane amendments to a bill. See RlDER.

noninfamous crime A crime that does not qualify as an infamous crime. Cf. infamous crime.

noninstallment credit Consumer credit arranged to be repaid in a single payment. Examples include doctors' and plumbers' bills.

noninsurable risk A risk for which insurance will not be written because the risk is too uncertain to be the subject of actuarial analysis.

non-interest-bearing bond See discount bond.

nonintervention executor See independent executor.

nonissuable plea A plea on which a court ruling will not decide the case on the merits, such as a plea in abatement.

nonjoinder See NONJOINDER.

nonjudicial day A day when courts do not sit or when legal proceedings cannot be conducted, such as a Sunday or legal holiday. See LEGAL HOLIDAY; NON JURIDICUS. Cf. juridical day.

nonjudicial foreclosure 1. See power-of-sale foreclosure. 2. A foreclosure method that does not require court involvement.

nonjudicial oath 1. An oath taken out of court, esp. before an officer ex parte. - Also termed voluntary oath. 2. See extrajudicial oath.

nonjudicial punishment A procedure under which a commanding officer levies punishment against a minor offender who is subject to the Uniform Code of Military Justice. In the Navy and Coast Guard, nonjudicial punishment is termed captain s mast; in the Marine Corps, it is termed office hours; and in the Army and Air Force, it is referred to as Article 15. Nonjudicial punishment is not a courtmartial.

nonjusticiable question See POUTICAt QUESTION.

nonliquidating distribution A distribution of assets by a corporation or partnership that is not going out of business, such as a distribution ofexcess capital not necessary for current operations.

nonliteral infringement See DOCTRINE OF EQUIVALENTS.

nonmarital child See illegitimate child.

nonmarketable security 1. A security that cannot be sold on the market and can be redeemed only by the holder. 2. A security that is not of investment quality.

nonmedical policy An insurance policy issued without a prior medical examination of the applicant.

nonmember bank A bank that is not a member of the Federal Reserve System. See FEDERAL RESERVE SYSTEM.

nonmutual collateral estoppel Estoppel asserted either offensively or defenSively by a nonparty to an earlier action to prevent a party to that earlier action from relitigating an issue determined against it.

nonnegotiable bill of lading See straight bill of lading.

nonnegotiable document of title A document of title that merely serves as evidence of the goods it covers. UCC § 7-104(2).

nonoperating income Business income derived from investments rather than operations.

nonoperative performance bond A performance bond that is not currently in effect but is activated upon the issuance of the buyer s letter of credit or other approved financing

nonoriginal bill A bill relating to some matter already litigated by the same parties. It is an addition to or a continuation of an original bill.