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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 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.
installment contract
accredited investors
mitigation of damages
secured party
2. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.
cross-collateralization
default
sexual harassment
counterclaim
3. A person to whom a promise is made.
perfection
docket
promisee
delegation of duties
4. The testimony of a party to a lawsuit or a witness taken under oath before a trial.
deposition
self-defense
incidental damages
negotiation
5. 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.
express contract
bailee
license
debtor
6. A party to whom the rights under a contract are transferred - or assigned.
collecting bank
probable cause
devisee
assignee
7. In the context of real property - an interest in land that does not include any right to possess the property.
information
nonpossessory interest
installment contract
white-collar crime
8. 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.
acceptance
disclosed principal
cover
act of state doctrine
9. Property that is movable; any property that is not real property.
personal property
cease-and-desist order
tenancy in common
vicarious liability
10. 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.
insider trading
assignee
fiduciary
brief
11. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).
delegator
accord and satisfaction
common stock
suretyship
12. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.
condition subsequent
whistleblowing
complaint
mitigation of damages
13. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.
check
categorical imperative
partially disclosed principal
constructive eviction
14. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.
international organization
investment company
sale on approval
proxy
15. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.
nonpossessory interest
implied warranty
tender
agency
16. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).
delegation of duties
garnishment
lease agreement
business ethics
17. The act of accepting and giving legal force to an obligation that previously was not enforceable.
ratification
adverse possession
domain name
watered stock
18. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.
probable cause
mortgagee
writ of certiorari
liquidation
19. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.
constructive trust
fixture
corporation
corporate governance
20. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'
taking
alternative dispute resolution (ADR)
transfer warranties
principle of rights
21. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.
franchisee
distribution agreement
insurable interest
specific performance
22. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.
per capita
impossibility of performance
surety
computer crime
23. 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.'
merchant
e-signature
mirror image rule
self-defense
24. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.
white-collar crime
performance
obligee
executor
25. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.
abandoned property
executed contract
mitigation of damages
expropriation
26. 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.
choice-of-law clause
summons
implied-in-fact contract
Statute of Frauds
27. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.
voidable contract
mortgagor
lien
tombstone ad
28. The power of a government to take land from private citizens for public use on the payment of just compensation.
defalcation
limited liability partnership (LLP)
eminent domain
service mark
29. A designation in the United States for a corporation formed in another country but doing business in the United States.
alien corporation
shipment contract
blue laws
question of fact
30. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.
international law
will substitutes
commingle
dividend
31. A state law providing that employees may not be required to join a union as a condition of retaining employment.
expropriation
market-share liability
clearinghouse
right-to-work law
32. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.
acceptance
motion for judgment n.o.v.
Regulation E
principle of rights
33. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.
presentment
forum-selection clause
draft
ratification
34. Prior conduct between the parties to a contract that establishes a common basis for their understanding.
probate court
dominion
secured party
course of dealing
35. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.
holographic will
will
fiduciary
confusion
36. 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.
cybersquatting
larceny
shipment contract
course of dealing
37. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea
arbitration
eminent domain
consequential damages
reaffirmation agreement
38. A contract that by law requires a specific form - such as being executed under seal - for its validity.
formal contract
tippee
comity
business necessity
39. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.
motion for a new trial
creditors' composition agreement
third party beneficiary
bankruptcy court
40. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.
certified check
long arm statute
intended beneficiary
course of performance
41. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.
gift causa mortis
condition subsequent
parol evidence rule
act of state doctrine
42. 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.
community property
securities
judicial review
certificate of deposit (CD)
43. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.
blue sky laws
bilateral contract
check
minimum wage
44. A promise or commitment to perform or refrain from performing some specified act in the future.
offer
misdemeanor
exclusive jurisdiction
disaffirmance
45. 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
categorical imperative
probate court
fungible goods
universal defenses
46. 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.
profit
mediation
motion for a new trial
reaffirmation agreement
47. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.
promisor
formal contract
risk
liquidated debt
48. Identifiable characteristics reasonably necessary to the normal operation of a particular business. These characteristics can include gender - national origin - and religion - but not race.
execution
bona fide occupational qualification (BFOQ)
shipment contract
garnishment
49. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.
product liability
valid contract
collective mark
sale
50. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.
Statute of Frauds
franchise
corporate social responsibility
specific performance