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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. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.






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






3. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.






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






5. 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.






6. 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.






7. A contract that has been completely performed by both parties.






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






9. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.






10. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i






11. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






12. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






13. 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).






14. The document filed with a designated state official by which a limited liability company is formed.






15. 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






16. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.






17. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






18. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






19. 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






20. 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






21. A check drawn by a bank on itself.

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






23. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.






24. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.






25. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.






26. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






27. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






28. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






29. The number of members of a decision-making body that must be present before business may be transacted.






30. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






31. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






32. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






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






34. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






35. 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.






36. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






37. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






38. Within a specified time period or - if no period is specified - within a reasonable time.






39. A person in possession of an instrument payable to bearer or indorsed in blank.






40. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






41. The power of a government to take land from private citizens for public use on the payment of just compensation.






42. Property resulting from intellectual - creative processes.






43. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






44. 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.






45. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






46. 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.






47. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






48. The act of stealing another's identifying information






49. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






50. 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.