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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. 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.






2. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.






3. 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






4. A contract between an employer and an employee in which the terms and conditions of employment are stated.






5. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






6. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






7. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






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






9. A crime






10. 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.






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






12. 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.






13. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






14. A person who receives inside information.






15. Identifiable characteristics reasonably necessary to the normal operation of a particular business. These characteristics can include gender - national origin - and religion - but not race.






16. A party to whom contractual obligations are transferred - or delegated.






17. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






18. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.






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






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






21. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






22. The first bank to receive a check for payment.






23. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.






24. 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






25. 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.






26. A contract in which one party forfeits the right to pursue a legal claim against the other party.






27. 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.






28. 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






29. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.






30. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






31. The process of taking private property for public use through the government's power of eminent domain.






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






33. A writ from a higher court asking the lower court for the record of a case.






34. 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.






35. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






36. A contract in which the terms of the agreement are stated in words - oral or written.






37. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.






38. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






39. A document prepared by a secured creditor and filed with the appropriate state or local official - to give notice to the public that the creditor has a security interest in collateral belonging to the debtor named in the statement. Financing statemen






40. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.






41. A case in which the plaintiff has produced sufficient evidence of his or her claim that the case can go to a jury; a case in which the evidence compels a decision for the plaintiff if the defendant produces no affirmative defense or evidence to dispr






42. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






43. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.






44. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






45. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p






46. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






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






48. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.






49. A person appointed by a testator in a will to see that her or his will is administered appropriately.






50. The failure - without legal excuse - of a promisor to perform the obligations of a contract.