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






2. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






3. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






4. 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






5. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






6. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






7. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






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






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






10. 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






11. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






12. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






13. A person who makes an offer.






14. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






15. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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






17. 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.






18. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






19. A gift of personal property by will (from the verb to bequeath).






20. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.






21. The process of proving and validating a will and settling all matters pertaining to an estate.






22. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






23. The intentional burning of another's dwelling. Some statutes have expanded this to include any real property regardless of ownership and the destruction of property by other means






24. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






25. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






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






27. The act of transferring to another all or part of one's duties arising under a contract.






28. 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.






29. A person to whom an offer is made.






30. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






31. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






32. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






33. The document filed with a designated state official by which a limited liability company is formed.






34. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






35. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






36. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






37. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






38. 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






39. 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






40. Having left a will at death.






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






42. 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






43. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






44. The passing of title to property from the seller to the buyer for a price.






45. 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






46. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.






47. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






48. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'






49. 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






50. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.