Test your basic knowledge |

Business Law Fundamentals

Subjects : law, business-law
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






2. A type of limited liability partnership owned by family members or fiduciaries of family members.






3. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






4. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






5. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






6. One who owes an obligation to another.






7. Information or processes that give a business an advantage over competitors that do not know the information or processes.






8. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






9. A person to whom a promise is made.






10. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






11. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






12. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






13. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






14. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






15. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






16. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.






17. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






18. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






19. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






20. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






21. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






22. One who makes and executes a will.






23. All forms of personal property.






24. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






25. Within a specified time period or - if no period is specified - within a reasonable time.






26. A person on the board of directors who is also an officer of the corporation.






27. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






28. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






29. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.






30. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






31. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






32. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






33. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






34. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.






35. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






36. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






37. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






38. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






39. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic






40. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






41. An assertion that something either will or will not happen in the future.






42. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






43. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






44. The act of transferring to another all or part of one's rights arising under a contract.






45. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






46. A state statute under which certain types of contracts must be in writing to be enforceable.






47. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






48. A charge by a grand jury that a named person has committed a crime.






49. A contract that by law requires a specific form - such as being executed under seal - for its validity.






50. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.