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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. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






2. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.






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






4. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






5. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






6. 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.






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






8. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






9. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.






10. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t






11. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.






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






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






14. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods






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






16. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






17. A network that can be used by persons located (distributed) around the country or the globe to share computer files.






18. 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






19. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






20. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






21. 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.






22. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






23. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






24. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.






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






26. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o






27. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






28. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






29. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv






30. A contract between an employer and an employee in which the terms and conditions of employment are stated.






31. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






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






33. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






34. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






35. 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.






36. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






37. 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






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






39. 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






40. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






41. A contract in which one party forfeits the right to pursue a legal claim against the other party.






42. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






43. A party who transfers (delegates) her or his obligations under a contract to another party (called the delegatee).






44. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






45. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






46. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.






47. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.






48. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






49. 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






50. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i