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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. State laws that regulate the offering and sale of securities.






2. 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






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






4. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






5. A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.






6. 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.






7. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






8. A company whose business activity is holding shares in another company.






9. A trademark in cyberspace.






10. 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.






11. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.






12. A contract between the issuer of a bond and the bondholder.






13. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






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






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

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16. Property that is acquired by the debtor after the execution of a security agreement.






17. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






18. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






19. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






20. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






21. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






22. 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.






23. 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






24. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






25. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






26. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods






27. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






28. 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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29. 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.






30. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






31. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.

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






33. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.






34. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






35. 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






36. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






37. 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.






38. 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






39. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






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






41. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.






42. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t






43. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






44. Authority that is only apparent - not real. In agency law - a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed w






45. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part






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






47. A person on the board of directors who does not hold a management position at the corporation.






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






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






50. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.