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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 trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.






2. 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.






3. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






4. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






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






6. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






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






8. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






9. 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.






10. 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.






11. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






12. 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.






13. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






14. In a sale of goods - the express designation of the goods provided for in the contract.






15. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






16. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






17. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






18. A type of limited liability partnership owned by family members or fiduciaries of family members.






19. 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






20. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






21. 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.






22. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






23. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






24. 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.






25. A person to whom an offer is made.






26. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






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






28. The number of members of a decision-making body that must be present before business may be transacted.






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






30. A person who makes an offer.






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






32. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim






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






34. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted






35. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






36. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






37. 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.






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






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






40. A will written entirely in the signer's handwriting and usually not witnessed.






41. A state statute under which certain types of contracts must be in writing to be enforceable.






42. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






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






44. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






45. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






46. Any bank handling an item for collection - except the payor bank.






47. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain






48. 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.






49. 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






50. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of