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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 legally recognized authority that can certify the validity of digital signatures.






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






3. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.






4. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.






5. The purchase or sale of securities on the basis of information that has not been made available to the public.






6. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






7. A worldwide system in which foreign currencies are bought and sold.






8. 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.






9. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






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. Within a specified time period or - if no period is specified - within a reasonable time.






12. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.






13. A party to whom the rights under a contract are transferred - or assigned.






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






15. An assertion that something either will or will not happen in the future.






16. Property with which the owner has voluntarily parted and then cannot find or recover.






17. The power of a government to take land from private citizens for public use on the payment of just compensation.






18. An act equivalent to the actual - physical delivery of property that cannot be physically delivered because of difficulty or impossibility. For example - the transfer of a key to a safe constructively delivers the contents of the safe.






19. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.






20. 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.






21. Law that pertains to a particular nation (as opposed to international law).






22. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






23. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






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






25. The process of taking private property for public use through the government's power of eminent domain.






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






27. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






28. Joint ownership.






29. The geographic district in which a legal action is tried and from which the jury is selected.






30. 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






31. 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.






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






33. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i






34. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






35. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil






36. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






37. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau






38. A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law - if the name is the same as the firm's t






39. A contract that is formed electronically.






40. 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






41. 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.






42. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.






43. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






44. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






45. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






46. One to whom an obligation is owed.






47. A contract in which one party forfeits the right to pursue a legal claim against the other party.






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






49. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






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







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