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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. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.
articles of incorporation
debtor in possession (DIP)
promisor
free-writing prospectus
2. One who is appointed by a court to handle the probate (disposition) of a person's estate if that person dies intestate (without a valid will) or if the executor named in the will cannot serve.
covenant not to compete
joint tenancy
administrator
proceeds
3. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.
articles of organization
tender offer
necessaries
bond indenture
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.
promise
mediation
franchisee
treaty
5. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'
foreign corporation
alternative dispute resolution (ADR)
e-signature
plea bargaining
6. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th
bilateral contract
nuncupative will
discharge
tombstone ad
7. 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.
merger
business necessity
sale on approval
ratification
8. 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.
joint and several liability
international organization
crime
standing to sue
9. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be
seniority system
SEC Rule 10b-5
alienation
legatee
10. 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
estopped
attachment
security interest
mailbox rule
11. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ
answer
mislaid property
market-share liability
risk
12. 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.
unilateral mistake
bilateral mistake
preference
unilateral contract
13. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.
cease-and-desist order
proceeds
exculpatory clause
e-evidence
14. A provision in a contract stipulating that certain unforeseen events
negotiation
force majeure clause
stock options
incidental damages
15. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.
promissory note
anticipatory repudiation
small claims court
peer-to-peer (P2P) networking
16. A party to whom the rights under a contract are transferred - or assigned.
assignee
employment contract
principle of rights
predominant-factor test
17. Property with which the owner has voluntarily parted and then cannot find or recover.
mislaid property
writ of certiorari
intestate
tangible property
18. 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.
draft
underwriter
right of subrogation
power of attorney
19. 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
acceptance
mailbox rule
spendthrift trust
check
20. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.
e-signature
confusion
whistleblowing
actus reus
21. 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.
constructive delivery
attachment
testate
pleadings
22. A tax on imported goods.
risk management
tariff
respondeat superior
disaffirmance
23. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.
promissory note
tender offer
mortgage
alternative dispute resolution (ADR)
24. Property that is acquired by the debtor after the execution of a security agreement.
after-acquired property
employment at will
petty offense
stock
25. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.
product liability
bond indenture
distribution agreement
collecting bank
26. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.
holding company
creditors' composition agreement
venture capital
white-collar crime
27. The passing of title to property from the seller to the buyer for a price.
sale
fictitious payee
franchisor
comity
28. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.
grand jury
assignee
estate in property
intestacy laws
29. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.
certificate of deposit (CD)
disparate-treatment discrimination
patent
bond
30. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).
profit
general partner
product liability
mailbox rule
31. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.
corporate social responsibility
robbery
emancipation
federal question
32. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the
trademark
business necessity
discharge
accord and satisfaction
33. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.
common stock
certified check
emancipation
dissolution
34. A nonpossessory right to use another's property in a manner established by either express or implied agreement.
requirements contract
easement
condition precedent
periodic tenancy
35. A type of contract that arises when a promise is given in exchange for a return promise.
free-writing prospectus
felony
information
bilateral contract
36. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ
motion to dismiss
nuncupative will
perfection
drawee
37. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.
forgery
testator
sole proprietorship
Regulation E
38. 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
sexual harassment
domain name
mirror image rule
interrogatories
39. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.
concurrent ownership
probate court
predominant-factor test
corporation
40. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.
default
special warranty deed
negotiation
trade name
41. A contract that does not require a specified form or formality to be valid.
S corporation
mislaid property
mechanic's lien
informal contract
42. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.
employment at will
concurrent ownership
usury
covenant not to compete
43. 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.
seasonably
seniority system
estate in property
vesting
44. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.
venue
fiduciary
stock certificate
order instrument
45. The goods and services that domestic firms sell to buyers located in other countries.
franchisee
export
domain name
distributed network
46. A contract that has been completely performed by both parties.
risk
whistleblowing
pass-through entity
executed contract
47. The term used to designate a person who has an ownership interest in a limited liability company.
intellectual property
member
pleadings
secured party
48. One who makes and executes a will.
Statute of Frauds
bond indenture
quota
testator
49. A public official authorized to attest to the authenticity of signatures.
notary public
intestacy laws
equal dignity rule
privity of contract
50. Law that pertains to a particular nation (as opposed to international law).
debtor
negotiable instrument
national law
transfer warranties