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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. One to whom goods are entrusted by a bailor.






2. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






3. A check - other than a certified check - that is presented for payment more than six months after its date.






4. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






5. The process of taking private property for public use through the government's power of eminent domain.






6. A writ from a higher court asking the lower court for the record of a case.






7. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.






8. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






9. A person to whom a promise is made.






10. Any interest in personal property or fixtures that secures payment or performance of an obligation.






11. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






12. 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






13. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).






14. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






15. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






16. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






17. 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.






18. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






19. An assertion that something either will or will not happen in the future.






20. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






21. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






22. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






23. 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.






24. A prediction concerning potential loss based on known and unknown factors.






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






26. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






27. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.






28. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






29. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).






30. A person appointed by a testator in a will to see that her or his will is administered appropriately.






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






32. 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.






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






34. Reasonable grounds for believing that a person should be arrested or searched.






35. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.

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36. A corporation whose shareholders are limited to a small group of persons - often including only family members.






37. 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.






38. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.






39. 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.






40. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






41. Land and everything attached to it - such as trees and buildings.






42. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






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






44. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






45. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






46. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part






47. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.






48. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






49. 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






50. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.