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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. The act of refraining from an action that one has a legal right to undertake.






2. 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.






3. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.






4. To put funds or goods together into one mass so that they are so mixed that they no longer have separate identities. In corporate law - if personal and corporate interests are commingled to the extent that the corporation has no separate identity - a






5. Goods that conform to contract specifications.






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






7. 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






8. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.






9. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






10. 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.






11. A contract in which the terms of the agreement are stated in words - oral or written.






12. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






13. An order by a bank customer to his or her bank not to pay or certify a certain check.






14. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.






15. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






16. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






17. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.






18. 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






19. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a






20. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






21. 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.






22. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






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






24. 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






25. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






26. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.

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27. One to whom an obligation is owed.






28. Joint ownership.






29. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






30. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






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






32. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






33. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






34. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.






35. A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong - or desirable or undesirable - a person should evaluate the action in terms of what would happen if everybody






36. A person who receives inside information.






37. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






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






39. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.






40. A prediction concerning potential loss based on known and unknown factors.






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 small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






43. 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.






44. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.






45. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).






46. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






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






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






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






50. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






Can you answer 50 questions in 15 minutes?



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