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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 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.






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






3. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






4. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






5. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






6. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the






7. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






8. 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.






9. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






10. A landlord's act of depriving a tenant of possession of the leased premises.






11. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






12. 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.






13. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






14. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






15. 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






16. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






17. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






18. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con






19. A check - other than a certified check - that is presented for payment more than six months after its date.






20. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






21. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.






22. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






23. A worldwide system in which foreign currencies are bought and sold.






24. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






25. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






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






27. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






28. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






29. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






30. 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.






31. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






32. Generally - the value given in return for a promise; involves two elements






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






34. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






35. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.






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






37. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim






38. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






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






40. The basic document filed with a designated state official by which a limited partnership is formed.






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






42. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






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






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






45. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






46. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.






47. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.






48. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






49. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






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