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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.
investment company
option contract
default
reaffirmation agreement
2. The number of members of a decision-making body that must be present before business may be transacted.
quorum
right of reimbursement
traveler's check
e-contract
3. 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.
service mark
security
negotiation
winding up
4. Goods that conform to contract specifications.
whistleblowing
incidental damages
adverse possession
conforming goods
5. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo
tangible employment action
delegator
undisclosed principal
I-551 Alien Registration Receipt
6. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'
attachment
docket
signature
information
7. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.
burglary
employment at will
mirror image rule
cover
8. A lesser crime than a felony - punishable by a fine or incarceration in jail for up to one year.
vicarious liability
misdemeanor
limited partner
corporation
9. 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
self-defense
covenant not to compete
actus reus
ratification
10. 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.
writ of attachment
mailbox rule
stop-payment order
cram-down provision
11. The term used to designate a person who has an ownership interest in a limited liability company.
testate
member
collateral
trade secret
12. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.
constructive delivery
counterclaim
tariff
comity
13. Property that is acquired by the debtor after the execution of a security agreement.
performance
after-acquired property
corporation
tenancy at sufferance
14. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.
larceny
license
tombstone ad
dishonor
15. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.
secured party
condition subsequent
winding up
contractual capacity
16. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.
winding up
signature
double jeopardy
reply
17. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.
complaint
liquidated damages
bounty payment
utilitarianism
18. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.
stock certificate
bilateral contract
question of fact
money laundering
19. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit
franchisee
cross-collateralization
voir dire
normal trade relations (NTR) status
20. 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.
predominant-factor test
conveyance
abandoned property
partially disclosed principal
21. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.
principle of rights
mortgagor
employment discrimination
insurable interest
22. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.
mortgage
question of fact
right of subrogation
motion for judgment n.o.v.
23. A network that can be used by persons located (distributed) around the country or the globe to share computer files.
motion for a new trial
distributed network
summary jury trial (SJT)
acceleration clause
24. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.
hacker
integrated contract
stock
venture capital
25. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.
limited liability limited partnership (LLLP)
service mark
tenancy by the entirety
cure
26. In contract law - the withdrawal of an offer by an offeror. Unless the offer is irrevocable - it can be revoked at any time prior to acceptance without liability.
winding up
revocation
tender offer
ratification
27. A tax on imported goods.
discharge
cyberterrorist
emancipation
tariff
28. An agreement by two or more persons to carry on - as co-owners - a business for profit.
voidable contract
secured party
partnership
universal defenses
29. 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.
nuncupative will
employment at will
express warranty
prima facie case
30. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201
franchise
whistleblowing
insolvent
writ of certiorari
31. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.
informal contract
whistleblowing
voidable contract
charitable trust
32. 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
attachment
emancipation
devise
crime
33. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.
intermediary bank
winding up
holding company
usage of trade
34. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.
informal contract
license
universal defenses
correspondent bank
35. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.
trade dress
extension clause
electronic fund transfer (EFT)
question of law
36. The basic document filed with a designated state official by which a limited partnership is formed.
certificate of limited partnership
third party beneficiary
testamentary trust
promissory estoppel
37. 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.
white-collar crime
motion for summary judgment
collateral
charitable trust
38. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.
export
copyright
deposition
investment contract
39. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm
counteroffer
personal defenses
perfection
drawer
40. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.
business necessity
robbery
bond
negotiable instrument
41. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment
crime
stock options
bilateral contract
judicial review
42. An assertion that something either will or will not happen in the future.
preference
smart card
promise
lease agreement
43. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o
spendthrift trust
covenant not to compete
employment at will
order instrument
44. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein
bailor
product liability
merchant
third party beneficiary
45. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.
forum-selection clause
past consideration
identity theft
foreign exchange market
46. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
information
testamentary trust
probate
cease-and-desist order
47. Property with which the owner has involuntarily parted and then cannot find or recover.
bounty payment
lost property
articles of incorporation
bequest
48. The use of an asset that is not the subject of a loan to collateralize that loan.
articles of organization
ethical reasoning
mortgagee
cross-collateralization
49. One to whom goods are entrusted by a bailor.
writ of execution
bailee
unreasonably dangerous product
motion for judgment on the pleadings
50. The idea that corporations can and should act ethically and be accountable to society for their actions.
corporate social responsibility
investment company
homestead exemption
takeover