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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 clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.






2. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






3. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






4. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.






5. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






6. The purchase or sale of securities on the basis of information that has not been made available to the public.






7. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).






8. Reasonable grounds for believing that a person should be arrested or searched.






9. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






10. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






11. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






12. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






13. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.

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14. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






15. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






16. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.






17. A contract between the issuer of a bond and the bondholder.






18. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.






19. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






20. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






21. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






22. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






23. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -






24. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






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






26. The authority of a court to hear and decide a specific case.






27. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






28. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






29. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






30. Land and everything attached to it - such as trees and buildings.






31. A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.






32. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






33. 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.






34. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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35. 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






36. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






37. 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.






38. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






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






40. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






41. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






42. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be






43. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.






44. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).






45. 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






46. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






47. Under the Uniform Commercial Code Section 2-403(2) - a rule stating that if goods are entrusted to a merchant who deals in goods of that kind - the merchant has the power to transfer those goods and all rights to them to a buyer in the ordinary cours






48. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






49. The creation of an absolute or unconditional right or power.






50. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.