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To put into action, practice, or force; to make use of something, such as a right or option.

To exercise dominion over land is to openly indicate absolute possession and control.

To exercise discretion is to choose between doing and not doing something, the decision being based on sound judgment.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
If the dealer exercises the option, the issuer would amortize the premium over the term of the remarketed security.
On June 1, 2000, when the FMV of X stock is $25 per sham, A exercises the option and 100 shares are transferred to him on that date.
If FM exercises the option, the transaction is terminated at that point and X is not required to make any portion of the postpayment due under the headlease.