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






2. 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






3. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






4. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.






5. 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.






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






7. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






8. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






9. A person who makes a promise.






10. In a sale of goods - the express designation of the goods provided for in the contract.






11. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t






12. 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.






13. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.






14. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






15. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






16. A charge by a grand jury that a named person has committed a crime.






17. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






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






19. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






20. Barred - impeded - or precluded.






21. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






22. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






23. A trust that is created by will and therefore does not take effect until the death of the testator.






24. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






25. 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.






26. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






27. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






28. An action to carry into effect the directions in a court decree or judgment.






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






30. 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






31. 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.






32. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






33. 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.






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






35. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






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






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






38. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






39. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






40. Procedurally - a defendant's response to the plaintiff's complaint.






41. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






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






43. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).






44. 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.






45. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






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






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






48. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






49. A contract having no legal force or binding effect.






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