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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. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise
implied warranty of fitness for a particular purpose
probable cause
money laundering
collecting bank
2. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.
check
blue laws
voidable contract
larceny
3. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.
self-defense
abandoned property
testator
gift inter vivos
4. A contract that by law requires a specific form - such as being executed under seal - for its validity.
cover
formal contract
U.S. trustee
rule of four
5. In a sale of goods - the express designation of the goods provided for in the contract.
co-surety
identification
resulting trust
implied warranty of fitness for a particular purpose
6. An order by a bank customer to his or her bank not to pay or certify a certain check.
stop-payment order
eminent domain
answer
motion for a directed verdict
7. 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.
assignee
civil law system
liquidation
discharge
8. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.
lien
small claims court
alternative dispute resolution (ADR)
employment discrimination
9. 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.
express warranty
preferred stock
expropriation
stale check
10. The use of an asset that is not the subject of a loan to collateralize that loan.
cross-collateralization
probate court
transfer warranties
offer
11. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.
ultra vires
motion for judgment on the pleadings
Statute of Frauds
signature
12. A crime committed on the Internet.
lien
overdraft
document of title
cyber crime
13. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.
writ of certiorari
whistleblowing
policy
implied warranty of habitability
14. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.
federal question
lost property
financing statement
bilateral mistake
15. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.
burglary
cover
double jeopardy
counteroffer
16. The power of a government to take land from private citizens for public use on the payment of just compensation.
eminent domain
bond
prima facie case
unreasonably dangerous product
17. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
incidental damages
national law
third party beneficiary
forgery
18. Within a specified time period or - if no period is specified - within a reasonable time.
seasonably
testator
tangible employment action
wrongful discharge
19. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s
clearinghouse
constructive eviction
joint and several liability
reaffirmation agreement
20. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con
penalty
cover
assignment
negotiable instrument
21. 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.
preemptive rights
accession
lien
export
22. In criminal law - a defense in which the defendant claims that he or she was induced by a public official
concurrent jurisdiction
entrapment
whistleblowing
federal question
23. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio
plea bargaining
parent-subsidiary merger
bylaws
lease
24. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.
articles of incorporation
preferred creditor
tombstone ad
fee simple absolute
25. An act equivalent to the actual - physical delivery of property that cannot be physically delivered because of difficulty or impossibility. For example - the transfer of a key to a safe constructively delivers the contents of the safe.
order instrument
estopped
constructive delivery
dishonor
26. A tax on imported goods.
periodic tenancy
mechanic's lien
tariff
special warranty deed
27. 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.
quasi contract
common stock
insider trading
risk management
28. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.
lease agreement
risk management
moral minimum
entrapment
29. 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
ethical reasoning
franchisee
check
mens rea
30. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'
option contract
concurrent conditions
depositary bank
signature
31. 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.
inside director
overdraft
cybersquatting
collecting bank
32. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).
concurrent jurisdiction
trust
promissory estoppel
normal trade relations (NTR) status
33. 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.
brief
stock warrant
joint tenancy
closed shop
34. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.
drawer
bounty payment
parent-subsidiary merger
implied-in-fact contract
35. One who owes an obligation to another.
interrogatories
obligor
trademark
testator
36. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.
executory contract
dissociation
adverse possession
junior lienholder
37. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).
independent contractor
trade dress
document of title
condition subsequent
38. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.
sale
consent
condition subsequent
disparate-impact discrimination
39. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract
incidental damages
due diligence
concurrent conditions
tippee
40. 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.
lost property
winding up
motion for summary judgment
executory contract
41. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.
workers' compensation laws
actus reus
fixed-term tenancy
service mark
42. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.
employment at will
product liability
apparent authority
motion for a new trial
43. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.
stock
restitution
dominion
security agreement
44. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.
expropriation
discovery
cybersquatting
joint and several liability
45. A type of contract that arises when a promise is given in exchange for a return promise.
intestate
bilateral contract
bankruptcy court
testator
46. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.
Regulation E
devise
sales contract
limited liability partnership (LLP)
47. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.
past consideration
constructive trust
stock options
exculpatory clause
48. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in
business judgment rule
Statute of Frauds
malpractice
destination contract
49. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.
joint tenancy
blue laws
mediation
cross-collateralization
50. 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.
attachment
summons
backdating
treaty