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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. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.






2. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.






3. An ownership interest in land in which the owner has the greatest possible aggregation of rights - privileges - and power. Ownership in fee simple absolute is limited absolutely to a person and her or his heirs.






4. 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.






5. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.






6. 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






7. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.






8. 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.






9. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






10. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






11. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






12. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






13. An employer's termination of an employee's employment in violation of the law.






14. 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.






15. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






16. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






17. 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






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






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






20. 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.






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






22. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






23. Property that cannot be seen or touched but exists only conceptually - such as corporate stocks and bonds - patents and copyrights - and ordinary contract rights. Article 2 of the UCC does not govern intangible property.






24. Reasonable grounds for believing that a person should be arrested or searched.






25. All forms of personal property.






26. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.






27. Land and everything attached to it - such as trees and buildings.






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. An assertion that something either will or will not happen in the future.






30. 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






31. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






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






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






34. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.






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






36. The creation of an absolute or unconditional right or power.






37. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would






38. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






39. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






40. The geographic district in which a legal action is tried and from which the jury is selected.






41. A person who receives inside information.






42. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






43. 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.






44. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






45. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






46. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






47. Property with which the owner has voluntarily parted and then cannot find or recover.






48. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.






49. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






50. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.