Pro rata is an adverb or adjective, meaning in proportion. ^[1] The term is used in many legal and economic contexts, and sometimes spelled pro-rata.

Contents 1 Meanings of Pro rata 2 Examples 2.1 Torts 2.2 Partnership liability 2.3 Bankruptcy law 2.4 Worker's pay and benefits 2.5 Investment laws 2.6 Insurance 2.7 College tuition 3 References 4 See also

Meanings of Pro rata

More specifically, Pro rata means:

1. In proportion to some factor that can be exactly calculated. FACTOR may also refer to the Object Oriented programming requirements caputre acronym "Functionality Application domain Conditions Technology Objects and Responsibility" A calculation is a deliberate process for transforming one or more inputs into one or more results with variable change ^{[2] [3] [4]}
2. To count based on amount of time that has passed out of the total time. For other uses see Time (disambiguation Time is a component of a measuring system used to sequence events to compare the durations of
3. Proportional Ratio ^[5]

Pro-rata has a latin etymology, from pro, according to, for, or by, and rata, feminine ablative of calculated (rate or change). A ratio is an expression which compares quantities relative to each other Latin ( lingua Latīna, laˈtiːna is an Italic language, historically spoken in Latium and Ancient Rome. Etymology is the study of the History of Words &mdash when they entered a language from what source and how their form and meaning have changed over time In Linguistics, ablative case ( abbreviated ABL) is a name given to cases in various languages whose common characteristic ^[6]

Examples

Examples in law and economics include the following noted below. Law is a system of rules enforced through a set of Institutions used as an instrument to underpin civil obedience politics economics and society Economics is the social science that studies the production distribution, and consumption of goods and services.

Torts

When liability for a toxic tort or Products liability concerns many manufacturers, the liability under tort law is allocated proportionally. A toxic tort is a special type of Personal injury lawsuit in which the Plaintiff claims that exposure to a chemical caused the plaintiff's injury or disease Product liability is the area of law in which manufacturers distributors suppliers retailers and others who make products available to the public are held responsible for the injuries Tort law is the name given to a body of law that creates and provides remedies for civil wrongs that do not arise out of Contractual duties ^[7]

Partnership liability

Each of several partners "is liable for his own share or proportion only, they are said to be bound pro rata. For partnership in cricket terminology see List of cricket terms A partnership is a type of Business entity in which partners An example . . . may be found in the liability of partners; each is liable . . . only pro rata in relation to between themselves. " ^[8]

Bankruptcy law

When a debtor files for bankruptcy, and "the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. In Economics a debtor is simply an entity that owes a Debt to someone else the entity could be an individual a firm a government or an organization Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their Creditors Creditors may file a bankruptcy petition against A creditor is a party (eg person organization company or government that has a claim to the services of a second party If the debtor has any remaining funds, the money is divided proportionately among the creditors, according to the amount of the individual debts. " ^[9] "A creditor of an insolvent estate is to be paid pro rata with creditors of the same class. " ^[10]

In the U.S. Bankruptcy Court practice, the creditors often agree to settle for a pro-rata share at the so-called 341 meeting of creditors, named for the section of the Bankruptcy Code, without a formal hearing before a judge, and sometimes without even a trustee present. United States bankruptcy court are federal courts that have Subject-matter jurisdiction over bankruptcy cases. A judge, or justice, is an Official who presides over a Court of law Trustee is a Legal term that refers to a holder of property on behalf of a beneficiary.

Worker's pay and benefits

A worker's part-time work, overtime pay, and vacation time are typically calculated on pro rata basis. Overtime is the amount of time someone works beyond normal working hours. Lists of holidays The words holiday or vacation have related meanings in different English-speaking countries and continents but will usually refer to one of ^{[11] [12] [13]}

Under US Federal regulations, a government worker has the right, that, "When an employee's service is interrupted by a non-leave earning period, leave is earned on a pro rata basis for each fractional pay period that occurs within the continuity of employment. The federal government of the United States is the central United States Governmental body established by the United States Constitution. This article is for the legal term For regulation of genes see Regulation of gene expression. For the government of parliamentary systems see Executive (government. " ^[14]

The American Federation of Teachers (AFT), a US labor union, argues that all part-time or adjunct instructors should get pro-rata pay for teaching college courses. Template talkInfobox Union for usage -->The American Federation of Teachers or AFT is an American labor union The United States of America —commonly referred to as the A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages hours and working conditions forming In Linguistics, an adjunct is any word phrase or clause joined to another word or phrase to qualify or modify it College ( Latin collegium) is a term most often used today to denote an Educational Institution. ^[15] This is an important issue, as of 2007, for part-time faculty. ^[16]

Irish secondary school teachers are entitled to pro-rata pay for part-time work. Ireland (pronounced /ˈaɾlənd/ Éire) is the third largest island in Europe, and the twentieth-largest island in the world Secondary school is a term used to describe an educational Institution where the final stage of compulsory schooling known as Secondary education, takes ^[17]

Under British employment law, "Regulations state that, where appropriate, the pro rata principle should be applied to any comparison . The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located Labour law (also known as employment or labor law is the body of Laws administrative rulings and precedents which address the legal rights of and restrictions . . to be given . . . holiday. " ^[18]

Likewise, in Tasmania, Australia, the law clearly grants workers the privilege of part-time benefits for leave of absence. Tasmania is an Australian island and state of the same name It is located south of the eastern side of the Continent, being separated from it by Bass For a topic outline on this subject see List of basic Australia topics. Leave of absence (LOA is a term used to describe a period of time that one is to be away from his/her primary job while maintaining the status of employee. ^{[19] [20]} This is granted under the Long Service Leave Act 1976. ^[21]

Investment laws

Under the Blue Sky Laws, the Uniform Commercial Code's usage of trade, and industry practice governing a wide variety of investments, interest and dividends are divided pro-rata. A blue sky law is a state law in the United States that regulates the offering and sale of securities to protect the public from Fraud. The Uniform Commercial Code ( UCC or the Code is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of Interest is a fee paid on borrowed capital Assets lent include Money, Shares, Consumer goods through Hire purchase, major assets Dividends are payments made by a Corporation to its Shareholder members

In corporate securities practice, "a pro-rata dividend means that every shareholder gets an equal proportion for each share he or she owns. A corporation is a separate legal entity usually used to conduct business A security is a Fungible, Negotiable instrument representing financial value " ^[5]

In banking, "Pro-rating also refers to the practice of applying interest rates to different time frames. A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money If the interest rate was 12% per annum, you could pro-rate this number to be 1% a month (12%/12 months). " ^[5]

Insurance

In insurance, pro rata is used to determine risk based on the time the insurance policy is in effect. Insurance, in Law and Economics, is a form of Risk management primarily used to hedge against the Risk of a contingent loss Risk is a Concept that denotes the precise probability of specific eventualities An Insurance contract determines the legal framework under which the features of an Insurance policy are enforced ^[22] It may also be used to describe proportional liability when more than one person is responsible for a loss or accident. loss may refer to A negative difference between retail Price and Cost of production An event in which the team or individual in question An accident is a specific identifiable unexpected unusual and unintended external event which occurs in a particular time and place without apparent or deliberate ^[23]

College tuition

When a college student withdraws, colleges almost always refund tuition payments on a pro-rata basis. College ( Latin collegium) is a term most often used today to denote an Educational Institution. The word student is etymologically derived through Middle English from the Latin second-type conjugation Verb "studēre" ^[24]

References

See also

• Employee Retirement Income Security Act
• Liability
• Vesting

The Employee Retirement Income Security Act of 1974 ( ERISA) ( is an American federal statute that establishes minimum standards for pension plans in private In Law, vesting is to give an immediately secured right of present or future enjoyment

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