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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 person who makes a promise.






2. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






3. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.






4. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






5. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






6. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody






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






8. 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.






9. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






10. 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.






11. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






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






13. 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






14. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.






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






16. 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.






17. A revocable right or privilege of a person to come onto another person's land.






18. A person who makes an offer.






19. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






20. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






21. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla






22. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.






23. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






24. The act of refraining from an action that one has a legal right to undertake.






25. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






26. 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.






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






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






29. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






30. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






31. 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.






32. A company whose business activity is holding shares in another company.






33. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






34. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.






35. A promise or commitment to perform or refrain from performing some specified act in the future.






36. A document by which title to property (usually real property) is passed.






37. 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.






38. Ownership rights in property - including the right to possess and control the property.






39. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






40. 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.






41. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






42. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.






43. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






44. 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.






45. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.






46. A contract between the issuer of a bond and the bondholder.






47. Moral principles and values applied to social behavior.






48. A designation in the United States for a corporation formed in another country but doing business in the United States.






49. 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.






50. A type of contract that arises when a promise is given in exchange for a return promise.