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






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






3. A prediction concerning potential loss based on known and unknown factors.






4. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.






5. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.






6. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody






7. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a






8. Property that is acquired by the debtor after the execution of a security agreement.






9. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.






10. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






11. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






12. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






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






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






15. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






16. One designated in a will to receive a gift of personal property.






17. A revocable right or privilege of a person to come onto another person's land. In the context of intellectual property law - an agreement permitting the use of a trademark - copyright - patent - or trade secret for certain limited purposes.






18. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






19. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.






20. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






21. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm






22. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.






23. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






24. A check - other than a certified check - that is presented for payment more than six months after its date.






25. 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.






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

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27. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






28. 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.






29. 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.






30. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.






31. The use of an asset that is not the subject of a loan to collateralize that loan.






32. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






33. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.






34. A document by which title to property (usually real property) is passed.






35. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






36. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






37. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






38. A promise or commitment to perform or refrain from performing some specified act in the future.






39. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






40. The process of resolving a dispute through the court system.






41. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






42. 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.






43. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.






44. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






45. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






46. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






47. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






48. 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.






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






50. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.