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Business Law Fundamentals
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Match each statement with the correct term.
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1. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.
accord and satisfaction
electronic fund transfer (EFT)
2. Any interest in personal property or fixtures that secures payment or performance of an obligation.
3. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.
4. The idea that corporations can and should act ethically and be accountable to society for their actions.
corporate social responsibility
5. A qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.
standing to sue
6. The image and overall appearance of a product
privity of contract
7. 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
8. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.
tenancy at will
usage of trade
9. A paper exchanged in the regular course of business that evidences the right to possession of goods (for example - a bill of lading or a warehouse receipt).
document of title
business judgment rule
10. 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.
11. A written - temporary insurance policy.
12. A contract that results when an offer can be accepted only by the offeree's performance.
13. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.
breach of contract
employment at will
14. Embezzlement; the misappropriation of funds by a party - such as a corporate officer or public official - in a fiduciary relationship with another.
business judgment rule
15. Any bank handling an item for collection - except the payor bank.
16. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued
writ of execution
generally accepted auditing standards (GAAS)
17. Property that is movable; any property that is not real property.
18. 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.
19. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).
20. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.
piercing the corporate veil
21. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv
online dispute resolution (ODR)
tender of delivery
22. One designated in a will to receive a gift of real property.
23. Drawee that is legally obligated to pay an instrument when it is presented later for payment.
motion for a directed verdict
limited liability company (LLC)
24. In criminal law - a defense in which the defendant claims that he or she was induced by a public official
25. One who makes and executes a will.
26. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the
peer-to-peer (P2P) networking
27. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau
holder in due course (HDC)
workers' compensation laws
28. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.
right of contribution
29. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.
motion to dismiss
30. 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
31. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.
32. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately
I-551 Alien Registration Receipt
summary jury trial (SJT)
33. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.
34. 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.
35. The relationship that exists between the promisor and the promisee of a contract.
privity of contract
36. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.
37. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.
38. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.
gift causa mortis
private equity capital
39. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.
limited liability limited partnership (LLLP)
articles of organization
40. 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.'
41. A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law - if the name is the same as the firm's t
42. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.
standing to sue
bona fide occupational qualification (BFOQ)
43. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.
course of dealing
44. One for whose benefit a promise is made in a contract but who is not a party to the contract.
third party beneficiary
45. The use of an asset that is not the subject of a loan to collateralize that loan.
beyond a reasonable doubt
46. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.
mirror image rule
47. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab
corporate social responsibility
48. 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
49. The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.
course of performance
50. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'
writ of attachment
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