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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 process of proving and validating a will and settling all matters pertaining to an estate.






2. The legal avoidance - or setting aside - of a contractual obligation.






3. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






4. 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.






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






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






7. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






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






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






10. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






11. The geographic district in which a legal action is tried and from which the jury is selected.






12. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.






13. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






14. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).






15. 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.






16. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






17. 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.






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






19. To put funds or goods together into one mass so that they are so mixed that they no longer have separate identities. In corporate law - if personal and corporate interests are commingled to the extent that the corporation has no separate identity - a






20. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






21. In the employment context - the demanding of sexual favors in return for job promotions or other benefits - or language or conduct that is so sexually offensive that it creates a hostile working environment.






22. 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






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






24. An implied promise by a landlord that rented residential premises are fit for human habitation






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






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






27. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






28. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






29. A person who receives inside information.






30. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






31. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.

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32. The purchase or sale of securities on the basis of information that has not been made available to the public.






33. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.






34. A person who makes a promise.






35. 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.






36. A person on the board of directors who is also an officer of the corporation.






37. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






38. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






39. A designation in the United States for a corporation formed in another country but doing business in the United States.






40. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






41. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.






42. Evidence that consists of computer-generated or electronically recorded information - including e-mail - voice mail - spreadsheets - word-processing documents - and other data.






43. In a given state - a corporation that does business in the state without being incorporated therein.






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






45. 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.






46. A landlord's act of depriving a tenant of possession of the leased premises.






47. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.






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






49. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.






50. Goods that conform to contract specifications.