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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 basic document filed with a designated state official by which a limited partnership is formed.






2. An action to carry into effect the directions in a court decree or judgment.






3. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






4. 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.






5. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.






6. A party that holds a lien that is subordinate to one or more other liens on the same property.






7. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f






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






9. 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






10. A person appointed by a testator in a will to see that her or his will is administered appropriately.






11. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.






12. 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.






13. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.






14. A legally recognized authority that can certify the validity of digital signatures.






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






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






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






18. A crime






19. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






20. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






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






22. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






23. 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






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






25. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






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






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






28. 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.






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






30. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






31. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






32. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.






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






34. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






35. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.






36. 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.






37. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.






38. A person to whom a promise is made.






39. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.






40. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.






41. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






42. A contract that has not as yet been fully performed.






43. 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.






44. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






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






46. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






47. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






48. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






49. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.






50. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.