Duty

DEFINITION of 'Duty'

1. A tax levied on certain goods, services or transactions. Duties are enforceable by law and are imposed on commodities or financial transactions, instead of individuals.

2. The obligation of a person in authority, such as a fiduciary, to fulfill the responsibilities of his or her position.

BREAKING DOWN 'Duty'

1. Duties may be revoked in certain situations, such as an airport's duty-free shop. At a duty-free shop, commodities that are usually taxed, like cigarettes and alcohol, will not have a duty levied on them. Foreign visitors will then be able to purchase the goods at a lower price compared to domestic citizens.

2. The chief executive officer of a company has a fiduciary duty to the company's shareholders. This means that any course of action the CEO takes should be in the best interested of the shareholders.

RELATED TERMS
  1. Duty Free

    Goods that international travelers can purchase without paying ...
  2. Fiduciary

    A fiduciary is a person who acts on behalf of another person, ...
  3. Fiduciary Negligence

    A professional malpractice in which a person fails to honor his ...
  4. Import Duty

    A tax collected on imports and some exports by the customs authorities ...
  5. Stamp Duty

    The tax placed on legal documents usually in the transfer of ...
  6. Fiduciary Certification

    The certification process to ensure that fiduciaries uphold the ...
Related Articles
  1. Investing

    What are the fiduciary responsibilities of board members?

    Find out what fiduciary duties a board of directors owes to the company and its shareholders, including the duties of care, good faith and loyalty.
  2. Managing Wealth

    What is a Fiduciary?

    A fiduciary is a person who acts on behalf of another person (or people) to manage assets.
  3. Financial Advisor

    Meeting Your Fiduciary Responsibility

    Being a fiduciary comes with a certain level of responsibility. These four steps will reduce your liability when managing other people's money.
  4. Investing

    Why Realtors Have Fiduciary Responsibilities

    Find out why real estate agents are considered to have a legal fiduciary responsibility to uphold the best interests of their clients.
  5. Personal Finance

    Are You Trying To Get Sued?!

    Organizational lawsuits are commonplace these days. Knowing how to react to and (more importantly) prevent them can save your business.
  6. Financial Advisor

    How SEC and DOL Fiduciary Standards Could Differ

    SEC fiduciary standards could differ from what the DOL has proposed, causing more confusion about the impact of the rule.
  7. Financial Advisor

    Fiduciary Designations For Financial Advisors

    Attaining the AIF or AIFA could help both you and your clients enjoy a comfortable retirement.
  8. Markets

    What is an Anti-Dumping Duty?

    An anti-dumping duty is a large tariff a government imposes on importers who price their goods below fair market value.
  9. Investing

    What does DDP Mean?

    Delivery duty paid (DDP) is a shipping term specifying that the seller is responsible for all costs associated with delivery of the goods to the buyer. It is usually used when goods are exported ...
  10. Financial Advisor

    Fiduciary Rule Impact: How it's Already Being Felt

    The fiduciary rule will be announced today but it's impact is already being felt. Here's how.
RELATED FAQS
  1. Why is fiduciary duty so important?

    Find out why fiduciary duty is so important, including what this legal obligation entails and an example of how it can affect ... Read Answer >>
  2. Why do financial advisors have a fiduciary responsibility?

    Find out why financial advisors have a fiduciary duty to their clients, including what fiduciary duty entails and an example ... Read Answer >>
  3. What are some examples of fiduciary duty?

    Understand what it means to be a fiduciary, under what circumstances fiduciary duties arise and some common examples of fiduciary ... Read Answer >>
  4. What are the main communication points between a CFO and a CEO?

    Explore key communication points between CEOs and CFOs. Learn how each of these officers has a fiduciary duty to stockholders, ... Read Answer >>
  5. What is fiduciary liability insurance, and what are its benefits?

    Understand what fiduciary liability insurance is, what companies or individuals can benefit from having it, and when it is ... Read Answer >>
  6. What are the legal regulations on delivery duty paid?

    Understand the legal requirements for delivery duty paid, as well as how responsibilities can shift between buyers and sellers ... Read Answer >>
Trading Center