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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. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






2. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






3. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






4. A contract that by law requires a specific form - such as being executed under seal - for its validity.






5. In a sale of goods - the express designation of the goods provided for in the contract.






6. An order by a bank customer to his or her bank not to pay or certify a certain check.






7. 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.






8. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






9. 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.






10. The use of an asset that is not the subject of a loan to collateralize that loan.






11. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.






12. A crime committed on the Internet.






13. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






14. 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.






15. A situation occurring when a person is tried twice for the same criminal offense; prohibited by the Fifth Amendment to the Constitution.






16. The power of a government to take land from private citizens for public use on the payment of just compensation.






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






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






19. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s






20. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con






21. 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.






22. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






23. 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






24. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.






25. 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.






26. A tax on imported goods.






27. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.






28. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






29. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






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






31. 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.






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






33. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.






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






35. One who owes an obligation to another.






36. 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.






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. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.






39. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






40. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






41. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






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






43. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






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






45. A type of contract that arises when a promise is given in exchange for a return promise.






46. A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






47. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






48. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






49. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






50. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.