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Business Law Fundamentals

Subjects : law, business-law
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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 contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.

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

3. A contract in which one party forfeits the right to pursue a legal claim against the other party.

4. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.

5. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.

6. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p

7. A person who makes an offer.

8. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.

9. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.

10. The geographic district in which a legal action is tried and from which the jury is selected.

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. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.

13. 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

14. A contract between an employer and an employee in which the terms and conditions of employment are stated.

15. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.

16. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.

17. A person on the board of directors who is also an officer of the corporation.

18. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.

19. A contract that has not as yet been fully performed.

20. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.

21. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.

22. The act of accepting and giving legal force to an obligation that previously was not enforceable.

23. Property that is movable; any property that is not real property.

24. 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.

25. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.

26. In criminal law - a defense in which the defendant claims that he or she was induced by a public official

27. The legal avoidance - or setting aside - of a contractual obligation.

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

29. The first bank to receive a check for payment.

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

31. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).

32. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a

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

34. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.

35. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.

36. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop

37. 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.

38. All forms of personal property.

39. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are

40. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.

41. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.

42. Identifiable characteristics reasonably necessary to the normal operation of a particular business. These characteristics can include gender - national origin - and religion - but not race.

43. In insurance law - the price paid by the insured for insurance protection for a specified period of time.

44. 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.

45. 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.

46. 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.

47. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.

48. A rule of the United States Supreme Court under which the Court will not issue a writ of certiorari unless at least four justices approve of the decision to issue the writ.

49. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.

50. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.