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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 qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.
mens rea
pass-through entity
double jeopardy
condition
2. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.
trade name
express contract
scienter
devise
3. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.
white-collar crime
restitution
fee simple absolute
notary public
4. A person in possession of an instrument payable to bearer or indorsed in blank.
reformation
rescission
bearer
charitable trust
5. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract
incidental damages
signature
bankruptcy court
alienation
6. Property resulting from intellectual - creative processes.
intellectual property
bailee
delegator
distribution agreement
7. A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law - if the name is the same as the firm's t
insurance
trade name
vesting
novation
8. A contract in which the terms of the agreement are stated in words - oral or written.
corporation
express contract
concurrent conditions
interrogatories
9. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.
consolidation
diversity of citizenship
accession
motion for a new trial
10. The process of resolving a dispute through the court system.
litigation
suretyship
dishonor
unilateral mistake
11. 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.
tangible property
letter of credit
record
award
12. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.
will
international organization
free-writing prospectus
parol evidence rule
13. A state law providing that employees may not be required to join a union as a condition of retaining employment.
probate
right-to-work law
felony
rule of four
14. A person who makes a promise.
tenancy at sufferance
complaint
promisor
nuncupative will
15. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.
clearinghouse
SEC Rule 10b-5
sexual harassment
affirmative action
16. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.
co-surety
condition precedent
working papers
investment company
17. A type of contract that arises when a promise is given in exchange for a return promise.
bilateral contract
self-incrimination
consolidation
integrated contract
18. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.
joint tenancy
nuncupative will
mirror image rule
underwriter
19. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.
course of dealing
lease agreement
tangible employment action
sale on approval
20. Drawee that is legally obligated to pay an instrument when it is presented later for payment.
corporate governance
creditors' composition agreement
acceptor
consent
21. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.
intended beneficiary
fictitious payee
deficiency judgment
community property
22. 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.
discharge
default judgment
winding up
corporate governance
23. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.
parent-subsidiary merger
intestate
levy
respondeat superior
24. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.
will
self-defense
novation
fixed-term tenancy
25. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.
prima facie case
right of contribution
document of title
fixed-term tenancy
26. The intentional burning of another's dwelling. Some statutes have expanded this to include any real property regardless of ownership and the destruction of property by other means
bond
arson
stock options
maker
27. A prediction concerning potential loss based on known and unknown factors.
risk
general partner
overdraft
certified check
28. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.
promissory note
intestacy laws
fee simple absolute
collateral
29. 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.
personal defenses
mechanic's lien
adhesion contract
debtor
30. 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.
express warranty
international law
anticipatory repudiation
stored-value card
31. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.
tenancy at sufferance
business judgment rule
creditors' composition agreement
levy
32. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen
trade name
drawee
presentment
diversity of citizenship
33. Any interest in personal property or fixtures that secures payment or performance of an obligation.
tender of delivery
sale or return
security interest
franchise
34. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.
computer crime
stored-value card
stock warrant
sale
35. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.
probable cause
click-on agreement
negotiable instrument
vesting
36. A contract that has been completely performed by both parties.
void contract
shareholder's derivative suit
private equity capital
executed contract
37. 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
choice-of-law clause
destination contract
executor
bailment
38. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.
corporate governance
obligee
arbitration
devise
39. The act of transferring to another all or part of one's duties arising under a contract.
delegation of duties
due diligence
felony
mortgagor
40. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
consent
generally accepted accounting principles (GAAP)
holding company
security interest
41. The document filed with a designated state official by which a limited liability company is formed.
articles of organization
backdating
bond
novation
42. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.
export
retained earnings
complaint
moral minimum
43. The passing of title to property from the seller to the buyer for a price.
liquidated damages
force majeure clause
unilateral mistake
sale
44. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.
fiduciary
nonpossessory interest
testate
treaty
45. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
signature
tender of delivery
condemnation
reformation
46. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).
usage of trade
mitigation of damages
alienation
reformation
47. A contract in which one party forfeits the right to pursue a legal claim against the other party.
gift causa mortis
legatee
duress
release
48. 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.
continuation statement
workers' compensation laws
preference
standing to sue
49. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.
motion for a directed verdict
reply
S corporation
bilateral contract
50. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.
minimum wage
deposition
mortgage
I-551 Alien Registration Receipt