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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 selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






2. State laws that regulate the offering and sale of securities.






3. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






4. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would






5. The document filed with a designated state official by which a limited liability company is formed.






6. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






7. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






8. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






9. 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.






10. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






11. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.






12. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






13. Capital (funds and other assets) provided by professional - outside investors (venture capitalists - usually groups of wealthy investors and investment banks) to start new business ventures.






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






15. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






16. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






17. Within a specified time period or - if no period is specified - within a reasonable time.






18. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






19. A reward (payment) given to a person or persons who perform a certain service - such as informing legal authorities of illegal actions.






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






21. 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






22. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla






23. A person to whom a promise is made.






24. The act of registering a domain name that is the same as - or confusingly similar to - the trademark of another and then offering to sell that domain name back to the trademark owner.






25. A trademark in cyberspace.






26. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein






27. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






28. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






29. The authority of a court to hear and decide a specific case.






30. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o






31. An act equivalent to the actual - physical delivery of property that cannot be physically delivered because of difficulty or impossibility. For example - the transfer of a key to a safe constructively delivers the contents of the safe.






32. 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.






33. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






34. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






35. A hybrid form of business enterprise that offers the limited liability of a corporation and the tax advantages of a partnership.






36. A contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






37. 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).






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






39. 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






40. One who makes and executes a will.






41. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






42. A lease interest in land for an indefinite period involving payment of rent at fixed intervals - such as week to week - month to month - or year to year.






43. 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.






44. 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.






45. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






46. One to whom goods are entrusted by a bailor.






47. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.






48. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.






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






50. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.