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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 receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






2. A valid contract rendered unenforceable by some statute or law.






3. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






4. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






5. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






6. 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






7. 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






8. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.






9. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






10. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






11. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






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






13. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






14. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.






15. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical






16. 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.






17. 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.






18. 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






19. One designated in a will to receive a gift of real property.






20. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






21. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






22. 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.






23. The idea that corporations can and should act ethically and be accountable to society for their actions.






24. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






25. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






26. Any person in possession of an instrument drawn - issued - or indorsed to him or her - to his or her order - to bearer - or in blank.






27. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






28. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






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






30. 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.






31. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






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






33. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






34. 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.






35. The image and overall appearance of a product






36. 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.






37. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.






38. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






39. A person on the board of directors who does not hold a management position at the corporation.






40. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.






41. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






42. 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






43. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






44. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.






45. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






46. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

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47. A person to whom a promise is made.






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






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






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