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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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 negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'
order instrument
disclosed principal
bounty payment
prima facie case
2. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th
presentment
delegator
consequential damages
discharge
3. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit
liquidated debt
discharge
shipment contract
normal trade relations (NTR) status
4. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.
stored-value card
mens rea
trade dress
forum-selection clause
5. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.
shrink-wrap agreement
motion for summary judgment
prospectus
mitigation of damages
6. 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.
sublease
dissolution
ultra vires
duress
7. The document filed with a designated state official by which a limited liability company is formed.
collective mark
depositary bank
bailor
articles of organization
8. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.
insurance
electronic fund transfer (EFT)
default
proceeds
9. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.
eviction
probate court
right of reimbursement
traveler's check
10. One who owes an obligation to another.
stock certificate
due diligence
adverse possession
obligor
11. A person to whom an instrument is made payable.
document of title
payee
respondeat superior
usage of trade
12. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
service mark
arbitration clause
diversity of citizenship
testate
13. A card containing a microprocessor that permits storage of funds via security programming - can communicate with other computers - and does not require online authorization for fund transfers.
restitution
liquidated debt
holder
smart card
14. In a given state - a corporation that does business in - and is organized under the law of - that state.
domestic corporation
novation
indictment
taking
15. Land and everything attached to it - such as trees and buildings.
charitable trust
retained earnings
real property
secured transaction
16. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.
embezzlement
automatic stay
mislaid property
disaffirmance
17. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.
misdemeanor
default judgment
formal contract
mutual fund
18. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.
confusion
motion for summary judgment
trade secret
drawer
19. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.
payor bank
forgery
codicil
good faith purchaser
20. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.
periodic tenancy
motion for judgment n.o.v.
license
devise
21. 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.
ethical reasoning
incidental beneficiary
attachment
extension clause
22. The legal avoidance - or setting aside - of a contractual obligation.
disparate-impact discrimination
holding company
disaffirmance
e-money
23. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and
general partner
attachment
limited liability partnership (LLP)
answer
24. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th
peer-to-peer (P2P) networking
discharge
breach of contract
consumer-debtor
25. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con
articles of incorporation
reaffirmation agreement
cover
collective mark
26. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the
short-form merger
retained earnings
blue sky laws
red herring prospectus
27. The act of stealing another's identifying information
installment contract
unconscionable contract or clause
petition in bankruptcy
identity theft
28. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.
general partner
tangible property
check
bailor
29. A corporation whose shareholders are limited to a small group of persons - often including only family members.
close corporation
executory contract
discovery
usury
30. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.
limited liability limited partnership (LLLP)
financing statement
mens rea
obligee
31. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).
testamentary trust
voidable contract
premium
burglary
32. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.
accord and satisfaction
testator
certified check
discharge
33. A gift of personal property by will (from the verb to bequeath).
replevin
bequest
bond indenture
U.S. trustee
34. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.
vicarious liability
letter of credit
motion for a new trial
fiduciary
35. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D
securities
brief
hot-cargo agreement
bearer instrument
36. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.
continuation statement
sale
personal defenses
real property
37. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.
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38. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.
ultra vires
drawee
implied warranty
due diligence
39. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.
record
lost property
certified check
promissory note
40. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).
assignor
constructive delivery
lien
forum-selection clause
41. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.
nominal damages
charitable trust
right of subrogation
license
42. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl
lost property
limited partnership
trade dress
consent
43. A public official authorized to attest to the authenticity of signatures.
risk management
artisan's lien
notary public
voir dire
44. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo
tangible employment action
litigation
deposition
proceeds
45. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.
bilateral mistake
creditors' composition agreement
negotiable instrument
negotiation
46. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t
operating agreement
joint and several liability
promissory estoppel
general partner
47. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.
condition
insurable interest
agreement
past consideration
48. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.
business necessity
winding up
probable cause
counterclaim
49. 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.
identification
jurisdiction
security
duress
50. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.
incidental damages
mediation
incidental beneficiary
mortgagee