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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. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.
chattel
usage of trade
investment company
member
2. A type of limited liability partnership owned by family members or fiduciaries of family members.
charitable trust
bilateral mistake
nominal damages
family limited liability partnership (FLLP)
3. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.
life estate
condition precedent
valid contract
risk management
4. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.
constructive delivery
offeror
pleadings
comity
5. 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.
default judgment
negotiation
personal property
intestate
6. One who owes an obligation to another.
stop-payment order
cover
obligor
domestic corporation
7. Information or processes that give a business an advantage over competitors that do not know the information or processes.
cybersquatting
right-to-work law
holographic will
trade secret
8. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.
lease agreement
search warrant
inter vivos trust
right of subrogation
9. A person to whom a promise is made.
foreign exchange market
promisee
suretyship
investment contract
10. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.
tangible property
trade secret
inter vivos trust
assignee
11. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.
condition subsequent
partially disclosed principal
imposter
federal question
12. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.
duress
quorum
offeree
lease agreement
13. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.
search warrant
secured party
shipment contract
certification mark
14. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.
tangible employment action
security interest
objective theory of contracts
deficiency judgment
15. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.
unilateral contract
arbitration
stock certificate
intellectual property
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.
promissory note
mortgage
alienation
consent
17. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.
privity of contract
executed contract
periodic tenancy
cease-and-desist order
18. 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
express warranty
fungible goods
transfer warranties
delegation of duties
19. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.
pass-through entity
short-form merger
standing to sue
piercing the corporate veil
20. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.
discovery
unilateral contract
international law
certification mark
21. 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
question of law
fictitious payee
covenant not to sue
consequential damages
22. One who makes and executes a will.
investment contract
testator
indictment
nuncupative will
23. All forms of personal property.
motion to dismiss
seniority system
chattel
indorsement
24. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.
limited liability limited partnership (LLLP)
closed shop
takeover
certified check
25. Within a specified time period or - if no period is specified - within a reasonable time.
copyright
seasonably
duress
information
26. A person on the board of directors who is also an officer of the corporation.
target corporation
appraisal right
employment at will
inside director
27. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.
undisclosed principal
mortgagor
independent contractor
quota
28. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.
trade secret
misdemeanor
void contract
mechanic's lien
29. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.
forgery
installment contract
tangible employment action
smart card
30. A nonpossessory right to use another's property in a manner established by either express or implied agreement.
lien
liquidated damages
dissociation
easement
31. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
beyond a reasonable doubt
contractual capacity
foreign exchange market
preference
32. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.
franchisee
due diligence
offeree
mens rea
33. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar
inter vivos trust
destination contract
petition in bankruptcy
express warranty
34. 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.
offeree
draft
will
close corporation
35. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.
limited liability partnership (LLP)
dissociation
lien
vesting
36. 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
duress
constructive trust
promissory note
37. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.
incidental beneficiary
holding company
execution
condition subsequent
38. 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.
holder in due course (HDC)
sublease
correspondent bank
exclusive jurisdiction
39. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic
bona fide occupational qualification (BFOQ)
forum-selection clause
click-on agreement
parent-subsidiary merger
40. 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.
stored-value card
e-evidence
contractual capacity
security
41. An assertion that something either will or will not happen in the future.
promise
junior lienholder
constructive eviction
choice-of-law clause
42. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.
cost-benefit analysis
voir dire
limited liability limited partnership (LLLP)
constructive discharge
43. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).
unilateral mistake
e-money
articles of incorporation
Federal Reserve System
44. The act of transferring to another all or part of one's rights arising under a contract.
release
option contract
assignment
ultra vires
45. The portion of a corporation's profits that has not been paid out as dividends to shareholders.
privity of contract
larceny
retained earnings
stale check
46. A state statute under which certain types of contracts must be in writing to be enforceable.
sale on approval
franchise
Statute of Frauds
e-evidence
47. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.
forum-selection clause
exclusive distributorship
answer
ratification
48. A charge by a grand jury that a named person has committed a crime.
indictment
unreasonably dangerous product
offer
probate
49. A contract that by law requires a specific form - such as being executed under seal - for its validity.
forbearance
formal contract
insurable interest
policy
50. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.
forum-selection clause
long arm statute
accession
interrogatories