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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 set of policies or procedures affecting the way a corporation is directed or controlled.
corporate governance
testamentary trust
garnishment
domestic corporation
2. One who owes an obligation to another.
obligor
automatic stay
brief
cyber crime
3. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.
will
lien
arbitration clause
adverse possession
4. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h
collecting bank
self-incrimination
concurrent jurisdiction
negotiable instrument
5. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.
valid contract
sale or return
answer
stored-value card
6. A contract between the issuer of a bond and the bondholder.
identification
bounty payment
bond indenture
necessaries
7. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th
imposter
financing statement
deficiency judgment
penalty
8. A person who receives inside information.
patent
risk
e-money
tippee
9. 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
stored-value card
covenant not to compete
rule of four
common stock
10. 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
depositary bank
motion to dismiss
obligee
adverse possession
11. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.
bond
incidental damages
prospectus
consolidation
12. One who entrusts goods to a bailee.
attachment
attachment
bailor
question of law
13. The image and overall appearance of a product
contract
trade dress
gift causa mortis
arson
14. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.
negotiable instrument
deposition
adhesion contract
disparate-treatment discrimination
15. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.
document of title
universal defenses
limited partner
mitigation of damages
16. 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.
business judgment rule
default
arbitration clause
past consideration
17. Property that is movable; any property that is not real property.
choice-of-language clause
personal property
distribution agreement
indorsement
18. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
actus reus
unilateral contract
duress
nominal damages
19. 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
performance
warranty deed
incidental damages
artisan's lien
20. The first bank to receive a check for payment.
stored-value card
summons
appraisal right
depositary bank
21. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.
utilitarianism
standing to sue
search warrant
administrator
22. Procedurally - a plaintiff's response to a defendant's answer.
limited liability limited partnership (LLLP)
express contract
quorum
reply
23. The portion of a corporation's profits that has not been paid out as dividends to shareholders.
intestacy laws
retained earnings
lease
sole proprietorship
24. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
nominal damages
contractual capacity
accredited investors
testamentary trust
25. 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.
fiduciary
record
S corporation
bailment
26. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.
mirror image rule
stock
standing to sue
quasi contract
27. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.
implied warranty
corporate governance
mitigation of damages
collective mark
28. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.
act of state doctrine
surety
indorsement
automatic stay
29. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'
operating agreement
beyond a reasonable doubt
probable cause
inter vivos trust
30. 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.
community property
blue sky laws
cybersquatting
unconscionable contract or clause
31. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv
S corporation
national law
contract
disaffirmance
32. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).
insider trading
clearinghouse
independent contractor
collecting bank
33. 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.
certification mark
petition in bankruptcy
bailee
partnership
34. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be
universal defenses
pleadings
drawee
collateral promise
35. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.
automatic stay
categorical imperative
articles of partnership
sales contract
36. 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
personal property
devisee
obligee
operating agreement
37. Goods that conform to contract specifications.
conforming goods
lease
business judgment rule
stock options
38. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.
drawee
nuncupative will
special warranty deed
peer-to-peer (P2P) networking
39. State laws that regulate the offering and sale of securities.
defalcation
blue sky laws
conforming goods
testamentary trust
40. 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.
fiduciary
accord and satisfaction
voidable contract
dividend
41. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.
writ of execution
member
offeror
concurrent conditions
42. A contract that is formed electronically.
partnership
security
incidental damages
e-contract
43. A gift of personal property by will (from the verb to bequeath).
accredited investors
federal question
bequest
concurrent ownership
44. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'
default judgment
financing statement
signature
performance
45. The process of taking private property for public use through the government's power of eminent domain.
backdating
assignee
order instrument
condemnation
46. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.
contractual capacity
bailee
working papers
periodic tenancy
47. Under the Uniform Commercial Code Section 2-403(2) - a rule stating that if goods are entrusted to a merchant who deals in goods of that kind - the merchant has the power to transfer those goods and all rights to them to a buyer in the ordinary cours
forbearance
entrustment rule
bankruptcy court
mortgagee
48. 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.
incidental damages
exclusive distributorship
overdraft
merchant
49. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.
intermediary bank
corporation
duress
estate in property
50. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.
motion to dismiss
concurrent ownership
working papers
requirements contract