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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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 creation of an absolute or unconditional right or power.
vesting
cashier's check
Federal Reserve System
promisee
2. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.
contractual capacity
surety
U.S. trustee
partnership
3. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.
agreement
disparate-treatment discrimination
petty offense
estate in property
4. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.
levy
seasonably
information return
comity
5. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.
click-on agreement
mortgagee
preference
binder
6. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'
mortgagee
order instrument
voir dire
red herring prospectus
7. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t
operating agreement
copyright
covenant not to compete
release
8. The process of taking private property for public use through the government's power of eminent domain.
preemptive rights
categorical imperative
condemnation
employment discrimination
9. The authority of a court to hear and decide a specific case.
forum-selection clause
jurisdiction
white-collar crime
accession
10. A document by which title to property (usually real property) is passed.
right-to-work law
deed
insurance
right of subrogation
11. 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.
accredited investors
cure
default
limited partner
12. The act of accepting and giving legal force to an obligation that previously was not enforceable.
ratification
liquidation
franchisee
charitable trust
13. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are
tender of delivery
periodic tenancy
justiciable controversy
transfer warranties
14. An employer's termination of an employee's employment in violation of the law.
wrongful discharge
dumping
delegator
prima facie case
15. 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.
domain name
backdating
intestate
motion to dismiss
16. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).
stale check
collecting bank
executor
trust
17. 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.
small claims court
sale on approval
actus reus
risk management
18. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.
predominant-factor test
property
fixture
choice-of-language clause
19. 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.
assignee
closed shop
cybersquatting
reaffirmation agreement
20. 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
parent-subsidiary merger
co-surety
S corporation
market-share liability
21. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina
unenforceable contract
actus reus
novation
implied warranty of fitness for a particular purpose
22. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.
special warranty deed
implied-in-fact contract
mortgagor
parol evidence rule
23. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part
holder
stored-value card
debtor
domain name
24. Standards concerning an auditor's professional qualities and the judgment exercised by him or her in the performance of an audit and report. The source of the standards is the American Institute of Certified Public Accountants.
crime
fungible goods
breach of contract
generally accepted auditing standards (GAAS)
25. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.
proceeds
profit
workout
correspondent bank
26. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.
bankruptcy court
quitclaim deed
lost property
right-to-work law
27. The act of accepting and giving legal force to an obligation that previously was not enforceable.
fungible goods
writ of certiorari
ratification
bilateral mistake
28. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.
stock warrant
extension clause
prenuptial agreement
collateral
29. A suit brought by a shareholder to enforce a corporate cause of action against a third person.
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30. Jurisdiction that exists when a case can be heard only in a particular court or type of court.
mediation
per stirpes
exclusive jurisdiction
confiscation
31. An action to carry into effect the directions in a court decree or judgment.
condition subsequent
execution
reformation
member
32. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.
reply
sale on approval
duress
contract
33. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t
commercial impracticability
liquidated damages
collateral promise
act of state doctrine
34. A gift of personal property under a will.
parol evidence rule
larceny
legacy
malpractice
35. An assertion that something either will or will not happen in the future.
consumer-debtor
promise
covenant not to compete
attachment
36. Reasonable grounds for believing that a person should be arrested or searched.
correspondent bank
accord and satisfaction
bilateral contract
probable cause
37. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.
implied warranty
blue sky laws
treaty
fixture
38. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.
venture capital
gift inter vivos
motion for a new trial
exclusionary rule
39. In insurance law - the price paid by the insured for insurance protection for a specified period of time.
indorsement
bond indenture
premium
larceny
40. The basic document filed with a designated state official by which a limited partnership is formed.
principle of rights
dumping
ratification
certificate of limited partnership
41. The act of transferring to another all or part of one's duties arising under a contract.
tenancy by the entirety
incidental beneficiary
abandoned property
delegation of duties
42. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.
I-9 verification
information return
intended beneficiary
cashier's check
43. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen
diversity of citizenship
standing to sue
limited liability limited partnership (LLLP)
security
44. Drawee that is legally obligated to pay an instrument when it is presented later for payment.
contractual capacity
tender
acceptor
petty offense
45. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.
drawer
securities
counteroffer
robbery
46. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.
covenant not to sue
gift
sublease
reformation
47. 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.
winding up
past consideration
unilateral contract
employment discrimination
48. A set limit on the amount of goods that can be imported.
license
operating agreement
arson
quota
49. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.
motion for judgment n.o.v.
mortgagor
overdraft
commingle
50. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.
quitclaim deed
security agreement
larceny
implied warranty of merchantability