I know when you address a group of people, you may use "Ladies and Gentlemen". But if you need to address a woman that you don't know her name, is it OK to address her "Lady"?
For example, can I say "Lady, is this seat taken?"
Thanks in advance.
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No, that sounds at best odd, and at worst sarcastic and rude.
In general there is no need for a term of address. You can say
Excuse me. Is this seat taken?
In some situations, when the speaker is being humble, you can use "Ma'am" as a female alternative to "Sir". But this is generally not needed, and learners are unlikely to find themselves in situations where they would be expected to use "sir" or "ma'am", unless they are at certain schools.
As others have pointed out, "lady" by itself is generally considered rude or sarcastic.
Hey lady, would ya mind getting your kid off of my head?
An exception is when "Lady" is part of the person's actual name, as with certain courtesy titles in the UK.
The young gentleman asked if Lady Diana will be joining the family for dinner?
It can also be very proper (and deferential) to use "the lady" to address or refer to someone in the third person.
Would the lady care for a cocktail?
Please show the lady and the gentlemen to their table?