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 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.






2. 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.






3. 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.






4. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






5. 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.






6. A written - temporary insurance policy.






7. An employer's termination of an employee's employment in violation of the law.






8. 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.






9. 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.






10. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






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






12. 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.






13. 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.






14. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.






15. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.






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. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






18. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






19. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






20. The basic document filed with a designated state official by which a limited partnership is formed.






21. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.






22. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.






23. Any person in possession of an instrument drawn - issued - or indorsed to him or her - to his or her order - to bearer - or in blank.






24. 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.






25. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






26. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






27. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.






28. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






29. In the context of real property - an interest in land that does not include any right to possess the property.






30. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






31. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






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






33. 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.






34. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






35. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






36. A contract that is formed electronically.






37. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






38. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






39. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






40. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






41. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.






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






43. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






44. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil






45. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


46. A party that holds a lien that is subordinate to one or more other liens on the same property.






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






48. 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.






49. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.






50. A person to whom an instrument is made payable.