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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. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.






2. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






3. 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.






4. Procedurally - a plaintiff's response to a defendant's answer.






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






6. A promise or commitment to perform or refrain from performing some specified act in the future.






7. The image and overall appearance of a product






8. A document by which title to property (usually real property) is passed.






9. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.






10. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea






11. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






12. One designated in a will to receive a gift of personal property.






13. Reasonable grounds for believing that a person should be arrested or searched.






14. A negotiable instrument that is payable 'to the order of an identified person' or 'to an identified person or order.'






15. A payee on a negotiable instrument whom the maker or drawer does not intend to have an interest in the instrument. Indorsements by fictitious payees are treated as authorized indorsements under Article 3 of the UCC.






16. 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.






17. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.






18. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






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






20. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.






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






22. 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






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






24. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






25. 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.






26. A person to whom a promise is made.






27. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






28. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o






29. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.






30. Having left a will at death.






31. 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.






32. A card containing a microprocessor that permits storage of funds via security programming - can communicate with other computers - and does not require online authorization for fund transfers.






33. A check that is payable on demand - drawn on or payable through a financial institution (bank) - and designated as a traveler's check.

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34. A contract that is formed electronically.






35. Property with which the owner has voluntarily parted - with no intention of recovering it.






36. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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37. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






38. A state statute under which certain types of contracts must be in writing to be enforceable.






39. A corporation whose shareholders are limited to a small group of persons - often including only family members.






40. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






41. A will written entirely in the signer's handwriting and usually not witnessed.






42. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






43. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






44. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






45. 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.






46. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






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






48. 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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49. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






50. A worldwide system in which foreign currencies are bought and sold.