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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. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.
closed shop
felony
rescission
preferred stock
2. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
secondary boycott
suretyship
target corporation
forgery
3. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults. Thus - a guarantor's liability is secondary.
estate in property
ethics
risk management
guarantor
4. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).
covenant not to compete
implied-in-fact contract
trust
product liability
5. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
venture capital
expropriation
taking
nominal damages
6. Procedurally - a defendant's response to the plaintiff's complaint.
bankruptcy court
check
answer
bearer
7. Reasonable grounds for believing that a person should be arrested or searched.
installment contract
probable cause
estopped
intestacy laws
8. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab
winding up
voir dire
promissory note
browse-wrap terms
9. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'
power of attorney
signature
moral minimum
proxy
10. 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.
intermediary bank
insolvent
petty offense
fiduciary
11. 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
closed shop
generally accepted accounting principles (GAAP)
domain name
copyright
12. The authority of a court to hear and decide a specific case.
jurisdiction
motion for a new trial
acceptor
trust
13. 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.
constructive delivery
tender offer
cybersquatting
intestacy laws
14. 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.
cyber crime
will
trade name
certified check
15. 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
domestic corporation
family limited liability partnership (FLLP)
presentment warranties
business judgment rule
16. 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
petition in bankruptcy
special warranty deed
destination contract
crime
17. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'
stock warrant
exclusive jurisdiction
tenancy by the entirety
order instrument
18. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.
fee simple
limited liability partnership (LLP)
mortgage
standing to sue
19. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.
insurable interest
promisor
limited liability partnership (LLP)
mortgagor
20. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.
deed
dissociation
shipment contract
assignment
21. The document filed with a designated state official by which a limited liability company is formed.
articles of organization
fee simple
I-9 verification
executory contract
22. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
red herring prospectus
continuation statement
blue sky laws
contractual capacity
23. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.
preferred stock
counterclaim
taking
limited liability limited partnership (LLLP)
24. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).
forum-selection clause
ratification
self-incrimination
question of fact
25. One to whom an obligation is owed.
mailbox rule
promissory note
obligee
will substitutes
26. In criminal law - a defense in which the defendant claims that he or she was induced by a public official
formal contract
ethics
drawer
entrapment
27. A valid contract rendered unenforceable by some statute or law.
notary public
disclosed principal
unenforceable contract
arbitration clause
28. 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.
tippee
promissory estoppel
abandoned property
underwriter
29. A contract that has not as yet been fully performed.
executory contract
diversity of citizenship
signature
condition subsequent
30. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
consent
dissociation
merger
arson
31. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.
justiciable controversy
constructive trust
U.S. trustee
co-surety
32. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.
apparent authority
workout
correspondent bank
performance
33. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of
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34. 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
jurisdiction
specific performance
concurrent jurisdiction
prospectus
35. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.
quitclaim deed
short-form merger
personal defenses
civil law system
36. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.
offeror
double jeopardy
tenancy in common
extension clause
37. In insurance law - the price paid by the insured for insurance protection for a specified period of time.
mailbox rule
fixed-term tenancy
collateral promise
premium
38. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t
I-9 verification
operating agreement
probate court
partially disclosed principal
39. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical
principle of rights
docket
fixed-term tenancy
offeror
40. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.
profit
novation
domain name
right of contribution
41. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).
consumer-debtor
destination contract
prospectus
intestate
42. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.
bailee
floating lien
preferred creditor
embezzlement
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.
overdraft
common stock
award
condition precedent
44. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).
summons
parent-subsidiary merger
power of attorney
stock certificate
45. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
reaffirmation agreement
ethics
arbitration clause
garnishment
46. 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.
unconscionable contract or clause
output contract
payor bank
limited liability partnership (LLP)
47. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.
counteroffer
acceleration clause
insurable interest
right of contribution
48. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).
rule of four
consent
standing to sue
burglary
49. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.
international organization
corporate social responsibility
levy
perfection
50. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.
mediation
concurrent ownership
ethical reasoning
act of state doctrine