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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. An equity (ownership) interest in a corporation - measured in units of shares.
taking
stock
burglary
unilateral contract
2. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.
preferred stock
grand jury
acceptance
taking
3. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.
unenforceable contract
covenant not to sue
adverse possession
insurable interest
4. The portion of a corporation's profits that has not been paid out as dividends to shareholders.
eviction
retained earnings
charitable trust
sublease
5. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f
stock certificate
option contract
universal defenses
browse-wrap terms
6. 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.
deed
reply
protected class
purchase-money security interest (PMSI)
7. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.
electronic fund transfer (EFT)
record
conveyance
negotiable instrument
8. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.
execution
obligor
motion for a new trial
tangible employment action
9. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical
promisee
principle of rights
security
burglary
10. 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.
life estate
expropriation
outside director
certificate of deposit (CD)
11. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.
electronic fund transfer (EFT)
embezzlement
incidental damages
sales contract
12. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.
acceleration clause
consumer-debtor
summons
promise
13. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
bankruptcy court
normal trade relations (NTR) status
contractual capacity
license
14. 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.
franchise
accession
arbitration
nonpossessory interest
15. 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
cyber crime
diversity of citizenship
articles of organization
condition precedent
16. A company whose business activity is holding shares in another company.
offeror
holding company
e-money
output contract
17. 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.
replevin
pass-through entity
investment company
cost-benefit analysis
18. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.
condition
trade dress
general partner
constructive discharge
19. 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
sexual harassment
arson
promise
security
20. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.
duress
articles of organization
check
special warranty deed
21. Property that is movable; any property that is not real property.
petition in bankruptcy
tenancy at sufferance
personal property
duress
22. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit
unenforceable contract
liquidation
normal trade relations (NTR) status
insolvent
23. 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
fungible goods
underwriter
investment company
money laundering
24. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
creditors' composition agreement
reformation
right-to-work law
foreign exchange market
25. 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.
sale
motion for a directed verdict
award
eviction
26. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.
inter vivos trust
white-collar crime
correspondent bank
entrustment rule
27. 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
merger
e-evidence
employment at will
forum-selection clause
28. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).
sexual harassment
condemnation
investment company
burglary
29. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.
tariff
nuncupative will
cybersquatting
promisee
30. 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.
preference
bailee
smart card
attachment
31. 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.
revocation
corporate governance
workout
traveler's check
32. 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.
mediation
rule of four
acceptance
frustration of purpose
33. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv
categorical imperative
international organization
tender of delivery
intestacy laws
34. The act of transferring to another all or part of one's rights arising under a contract.
assignment
impossibility of performance
undisclosed principal
exclusive jurisdiction
35. A party to whom contractual obligations are transferred - or delegated.
categorical imperative
preemptive rights
delegatee
novation
36. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.
consignment
presentment warranties
preferred stock
union shop
37. Having left a will at death.
testate
tenancy by the entirety
misdemeanor
devisee
38. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.
security
business necessity
right of subrogation
normal trade relations (NTR) status
39. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.
mediation
executed contract
spendthrift trust
stored-value card
40. A party that holds a lien that is subordinate to one or more other liens on the same property.
voir dire
condition
junior lienholder
negotiable instrument
41. Property resulting from intellectual - creative processes.
intellectual property
motion for summary judgment
right of contribution
bailee
42. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.
cram-down provision
will substitutes
forum-selection clause
course of performance
43. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.
drawer
actus reus
lessee
depositary bank
44. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.
nuncupative will
restitution
prospectus
alternative dispute resolution (ADR)
45. A contract having no legal force or binding effect.
whistleblowing
void contract
frustration of purpose
bequest
46. In the context of real property - an interest in land that does not include any right to possess the property.
holder in due course (HDC)
dumping
quitclaim deed
nonpossessory interest
47. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.
condition subsequent
creditors' composition agreement
private equity capital
secondary boycott
48. A formal legal document prepared by a party's attorney and submitted to an appellate court when a case is appealed - which outlines the facts and issues of the case that are in dispute.
limited liability limited partnership (LLLP)
brief
indorsement
easement
49. The passing of title to property from the seller to the buyer for a price.
common stock
sale
duress
quasi contract
50. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.
quitclaim deed
union shop
business ethics
intended beneficiary