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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 negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






2. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






3. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






4. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






5. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






6. 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.






7. The document filed with a designated state official by which a limited liability company is formed.






8. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






9. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






10. One who owes an obligation to another.






11. A person to whom an instrument is made payable.






12. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.






13. A card containing a microprocessor that permits storage of funds via security programming - can communicate with other computers - and does not require online authorization for fund transfers.






14. In a given state - a corporation that does business in - and is organized under the law of - that state.






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






16. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






17. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.






18. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






19. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.






20. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.






21. 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.






22. The legal avoidance - or setting aside - of a contractual obligation.






23. 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






24. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th






25. 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






26. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the






27. The act of stealing another's identifying information






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






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






30. 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.






31. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






32. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.






33. A gift of personal property by will (from the verb to bequeath).






34. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.






35. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D






36. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.






37. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.

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38. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






39. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.






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






41. 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.






42. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl






43. A public official authorized to attest to the authenticity of signatures.






44. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo






45. 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.






46. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






47. 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.






48. 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.






49. 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.






50. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.