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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. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.






2. 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.






3. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






4. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






5. 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.






6. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.






7. 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.






8. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






9. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






10. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.






11. 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






12. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






13. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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14. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






15. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






16. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






17. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.






18. A court's order - issued prior to a trial to collect a debt - directing the sheriff or other public officer to seize nonexempt property of the debtor. If the creditor prevails at trial - the seized property can be sold to satisfy the judgment.






19. A provision in a contract stipulating that certain unforeseen events






20. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






21. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






22. 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.






23. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






24. Charging an illegal rate of interest.






25. A common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






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






27. 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.






28. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






29. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.






30. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.






31. 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.






32. 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.






33. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






34. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.






35. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






36. 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.






37. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






38. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






39. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.






40. A contract that has not as yet been fully performed.






41. 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






42. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






43. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.






44. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






45. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio






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






47. The act of stealing another's identifying information






48. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.






49. Goods that conform to contract specifications.






50. One who entrusts goods to a bailee.