SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 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
dissociation
inter vivos trust
eviction
implied warranty of fitness for a particular purpose
2. Property that is acquired by the debtor after the execution of a security agreement.
business judgment rule
anticipatory repudiation
lease
after-acquired property
3. Procedurally - a defendant's response to the plaintiff's complaint.
entrapment
answer
money laundering
automatic stay
4. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.
appraisal right
presentment
probate court
special warranty deed
5. An employer's termination of an employee's employment in violation of the law.
order instrument
corporate governance
copyright
wrongful discharge
6. The power of a government to take land from private citizens for public use on the payment of just compensation.
eminent domain
real property
taking
eviction
7. 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.
U.S. trustee
workout
devisee
motion for summary judgment
8. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.
easement
restitution
indorsement
guarantor
9. 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
crime
mens rea
equal dignity rule
10. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).
generally accepted accounting principles (GAAP)
co-surety
quitclaim deed
assignor
11. A landlord's act of depriving a tenant of possession of the leased premises.
quitclaim deed
eviction
requirements contract
pledge
12. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.
homestead exemption
international law
seniority system
stop-payment order
13. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.
alien corporation
intended beneficiary
choice-of-language clause
articles of incorporation
14. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.
stale check
merchant
summary jury trial (SJT)
treaty
15. An equity (ownership) interest in a corporation - measured in units of shares.
adverse possession
premium
stock
question of law
16. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.
backdating
intellectual property
cover
long arm statute
17. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.
distribution agreement
presentment warranties
limited liability partnership (LLP)
confusion
18. Property resulting from intellectual - creative processes.
intellectual property
devisee
execution
per capita
19. The term used to designate a person who has an ownership interest in a limited liability company.
disclosed principal
unenforceable contract
member
acceptance
20. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued
reformation
creditors' composition agreement
writ of execution
good faith purchaser
21. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.
intermediary bank
tangible property
business necessity
covenant not to sue
22. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.
wrongful discharge
cease-and-desist order
beyond a reasonable doubt
lessee
23. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.
acceleration clause
objective theory of contracts
preemptive rights
risk management
24. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'
bearer instrument
takeover
constructive delivery
concurrent conditions
25. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.
affirmative action
contract
arson
venue
26. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'
workers' compensation laws
informal contract
comity
e-signature
27. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.
fee simple absolute
traveler's check
commingle
co-surety
28. 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.
incidental beneficiary
devise
revocation
debtor in possession (DIP)
29. 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.
nonpossessory interest
course of performance
treaty
union shop
30. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.
duress
lease
writ of execution
ultra vires
31. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment
answer
crime
money laundering
estate in property
32. A contract that does not require a specified form or formality to be valid.
disclosed principal
sale or return
informal contract
minimum wage
33. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.
intellectual property
liquidation
question of fact
express warranty
34. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.
intangible property
appraisal right
policy
confusion
35. An action to carry into effect the directions in a court decree or judgment.
dissolution
property
execution
mailbox rule
36. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'
impossibility of performance
signature
smart card
tombstone ad
37. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.
choice-of-language clause
fictitious payee
estopped
reaffirmation agreement
38. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only
abandoned property
condition
e-signature
tenancy at sufferance
39. A worldwide system in which foreign currencies are bought and sold.
restitution
revocation
nonpossessory interest
foreign exchange market
40. A person to whom an instrument is made payable.
certification mark
justiciable controversy
automatic stay
payee
41. 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.
dividend
distributed network
mediation
blue sky laws
42. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.
insider trading
generally accepted accounting principles (GAAP)
mortgage
insurable interest
43. In criminal law - a defense in which the defendant claims that he or she was induced by a public official
employment discrimination
obligor
bona fide occupational qualification (BFOQ)
entrapment
44. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.
stored-value card
petty offense
testate
assignee
45. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.
franchise
co-surety
Statute of Frauds
bailee
46. A contract between the issuer of a bond and the bondholder.
general partner
trade name
nominal damages
bond indenture
47. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be
estopped
shelter principle
SEC Rule 10b-5
stored-value card
48. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.
digital cash
reformation
tender offer
double jeopardy
49. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.
pleadings
mailbox rule
good faith purchaser
cure
50. 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
resulting trust
holographic will
presentment warranties
discharge