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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 person who acquires the right to the possession and use of another's goods in exchange for rental payments.
intangible property
franchisee
holding company
lessee
2. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.
tender
artisan's lien
security
assignee
3. 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
motion to dismiss
pledge
financing statement
principle of rights
4. 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.
partially disclosed principal
past consideration
workers' compensation laws
accredited investors
5. The first bank to receive a check for payment.
red herring prospectus
stop-payment order
depositary bank
consequential damages
6. The act of transferring to another all or part of one's rights arising under a contract.
sole proprietorship
assignment
mortgagee
order for relief
7. Prior conduct between the parties to a contract that establishes a common basis for their understanding.
cyber mark
course of dealing
e-contract
plea bargaining
8. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.
fungible goods
due diligence
specific performance
assignor
9. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.
due diligence
shipment contract
lessor
preemptive rights
10. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the
incidental beneficiary
trademark
generally accepted auditing standards (GAAS)
ethics
11. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen
minimum wage
fixture
normal trade relations (NTR) status
diversity of citizenship
12. The act of accepting and giving legal force to an obligation that previously was not enforceable.
limited liability company (LLC)
ratification
covenant not to sue
testamentary trust
13. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.
concurrent jurisdiction
specific performance
necessaries
limited liability company (LLC)
14. 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.
commercial impracticability
covenant not to compete
lien
levy
15. The purchase or sale of securities on the basis of information that has not been made available to the public.
articles of organization
justiciable controversy
debtor
insider trading
16. Having left a will at death.
unreasonably dangerous product
bailor
testate
real property
17. The image and overall appearance of a product
extension clause
trade dress
implied warranty of merchantability
malpractice
18. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.
intended beneficiary
exclusive distributorship
after-acquired property
employment at will
19. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.
securities
warranty deed
motion for a new trial
consumer-debtor
20. 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.
dissolution
guarantor
liquidated damages
covenant not to compete
21. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
property
dissolution
reformation
depositary bank
22. The bank on which a check is drawn (the drawee bank).
ratification
negotiable instrument
output contract
payor bank
23. One for whose benefit a promise is made in a contract but who is not a party to the contract.
third party beneficiary
franchisee
performance
traveler's check
24. One who makes and executes a will.
bilateral contract
sales contract
testator
ultra vires
25. 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.
joint tenancy
installment contract
purchase-money security interest (PMSI)
market-share liability
26. 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.
periodic tenancy
creditors' composition agreement
bankruptcy court
sublease
27. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic
click-on agreement
taking
valid contract
past consideration
28. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.
backdating
information
debtor
eminent domain
29. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.
check
jurisdiction
tender
business ethics
30. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj
warranty deed
incidental damages
distribution agreement
mislaid property
31. 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
nuncupative will
draft
limited partner
mens rea
32. A prediction concerning potential loss based on known and unknown factors.
bearer instrument
risk
creditors' composition agreement
quorum
33. Property with which the owner has voluntarily parted - with no intention of recovering it.
right of reimbursement
abandoned property
fictitious payee
holding company
34. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
choice-of-language clause
estopped
nominal damages
fungible goods
35. The process of resolving a dispute through the court system.
vesting
community property
mortgage
litigation
36. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).
federal question
counteroffer
business ethics
frustration of purpose
37. A party to whom contractual obligations are transferred - or delegated.
express contract
generally accepted accounting principles (GAAP)
delegatee
corporate governance
38. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.
license
default
online dispute resolution (ODR)
answer
39. The act of accepting and giving legal force to an obligation that previously was not enforceable.
insolvent
ratification
cyberterrorist
bona fide occupational qualification (BFOQ)
40. Property with which the owner has voluntarily parted and then cannot find or recover.
international organization
liquidated debt
security
mislaid property
41. Any bank handling an item for collection - except the payor bank.
appraisal right
voir dire
blue laws
collecting bank
42. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.
sovereign immunity
unenforceable contract
periodic tenancy
ratification
43. The use of an asset that is not the subject of a loan to collateralize that loan.
cross-collateralization
private equity capital
security interest
debtor in possession (DIP)
44. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.
parol evidence rule
prenuptial agreement
choice-of-language clause
I-551 Alien Registration Receipt
45. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.
delegatee
abandoned property
condition
shrink-wrap agreement
46. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.
question of law
concurrent conditions
levy
past consideration
47. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.
deposition
docket
disparate-impact discrimination
domain name
48. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.
embezzlement
insider trading
usury
tombstone ad
49. 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.
small claims court
robbery
complaint
accession
50. A provision in a contract stipulating that certain unforeseen events
cram-down provision
void contract
force majeure clause
preemptive rights