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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. A written - temporary insurance policy.






2. Property resulting from intellectual - creative processes.






3. 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.






4. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






5. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






6. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.






7. The act of accepting and giving legal force to an obligation that previously was not enforceable.






8. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






9. An assertion or action by a party indicating that he or she will not perform an obligation that the party is contractually obligated to perform at a future time.






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






11. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical






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






13. A person in possession of an instrument payable to bearer or indorsed in blank.






14. 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.






15. In the context of real property - an interest in land that does not include any right to possess the property.






16. A contract that is formed electronically.






17. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






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






19. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






20. A charge by a grand jury that a named person has committed a crime.






21. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.






22. One who entrusts goods to a bailee.






23. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






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






25. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






26. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






27. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic






28. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.






29. A mark used in the sale or the advertising of services to distinguish the services of one person from those of others. Titles - character names - and other distinctive features of radio and television programs may be registered as service marks.






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






31. 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.






32. A promise or commitment to perform or refrain from performing some specified act in the future.






33. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






34. 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.






35. An equity (ownership) interest in a corporation - measured in units of shares.






36. 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.






37. 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.






38. 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).






39. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






40. In a given state - a corporation that does business in the state without being incorporated therein.






41. Goods that conform to contract specifications.






42. 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






43. A crime






44. 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.






45. A state statute under which certain types of contracts must be in writing to be enforceable.






46. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).






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






48. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






49. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






50. One designated in a will to receive a gift of real property.







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