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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 contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






2. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued






3. 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.






4. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






5. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






6. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






7. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.






8. A state law providing that employees may not be required to join a union as a condition of retaining employment.






9. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






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






11. A set of policies or procedures affecting the way a corporation is directed or controlled.






12. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






13. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h






14. A landlord's act of depriving a tenant of possession of the leased premises.






15. Information or processes that give a business an advantage over competitors that do not know the information or processes.






16. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.






17. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic






18. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.






19. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






20. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






21. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






22. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.






23. 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.






24. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






25. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






26. 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.






27. 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.






28. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






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






30. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






31. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.






32. A person on the board of directors who is also an officer of the corporation.






33. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.






34. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






35. 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.






36. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina






37. 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.






38. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.






39. A network that can be used by persons located (distributed) around the country or the globe to share computer files.






40. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






41. Having left a will at death.






42. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






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






44. A formal legal document prepared by a party's attorney and submitted to an appellate court when a case is appealed - which outlines the facts and issues of the case that are in dispute.






45. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.






46. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods






47. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






48. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.






49. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






50. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.







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