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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. To put funds or goods together into one mass so that they are so mixed that they no longer have separate identities. In corporate law - if personal and corporate interests are commingled to the extent that the corporation has no separate identity - a






2. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






3. A contract that does not require a specified form or formality to be valid.






4. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.






5. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






6. A person on the board of directors who does not hold a management position at the corporation.






7. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






8. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






9. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






10. A type of conditional sale in which title and possession pass from the seller to the buyer - but the buyer retains the option to return the goods during a specified period even though the goods conform to the contract.






11. 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.






12. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.






13. The passing of title to property from the seller to the buyer for a price.






14. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm






15. The process of taking private property for public use through the government's power of eminent domain.






16. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






17. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






18. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.

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19. Property with which the owner has voluntarily parted and then cannot find or recover.






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






21. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






22. Goods that conform to contract specifications.






23. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






24. One designated in a will to receive a gift of personal property.






25. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.






26. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






27. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'






28. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






29. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






30. One who makes and executes a will.






31. 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






32. A person on the board of directors who is also an officer of the corporation.






33. A person who receives inside information.






34. A contract in which one party forfeits the right to pursue a legal claim against the other party.






35. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






36. A union's refusal to work for - purchase from - or handle the products of a secondary employer - with whom the union has no dispute - in order to force that employer to stop doing business with the primary employer - with whom the union has a labor d






37. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






38. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






39. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






40. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






41. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






42. The process of resolving a dispute through the court system.






43. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a






44. 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.






45. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






46. Having left a will at death.






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






48. 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.






49. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






50. Under the UCC - a term describing a person who ceases to pay "his [or her] debts in the ordinary course of business or cannot pay his [or her] debts as they become due or is insolvent within the meaning of federal bankruptcy law" [UCC 1-201