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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. A worldwide system in which foreign currencies are bought and sold.
foreign exchange market
taking
voir dire
affirmative action
2. One who entrusts goods to a bailee.
bailor
limited partnership
scienter
mortgage
3. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.
agency
lien
testate
rescission
4. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.
trade dress
tender offer
performance
junior lienholder
5. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.
disparate-treatment discrimination
homestead exemption
record
tenancy by the entirety
6. 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.
brief
holder in due course (HDC)
shelter principle
partnership
7. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.
scienter
insider trading
concurrent jurisdiction
certificate of deposit (CD)
8. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.
disparate-impact discrimination
deficiency judgment
scienter
holder in due course (HDC)
9. A person appointed by a testator in a will to see that her or his will is administered appropriately.
quasi contract
third party beneficiary
ethical reasoning
executor
10. A valid contract rendered unenforceable by some statute or law.
cyber mark
negotiable instrument
docket
unenforceable contract
11. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -
exclusionary rule
dishonor
click-on agreement
community property
12. A contract that results when an offer can be accepted only by the offeree's performance.
litigation
unilateral contract
international organization
personal defenses
13. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
will
presentment
self-incrimination
arbitration clause
14. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
resulting trust
preference
forgery
unenforceable contract
15. 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.
franchisee
merchant
insurable interest
backdating
16. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.
business necessity
private equity capital
expropriation
scienter
17. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.
consolidation
express warranty
prenuptial agreement
trust
18. 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.
requirements contract
certificate of deposit (CD)
equal dignity rule
mediation
19. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p
partnering agreement
depositary bank
bona fide occupational qualification (BFOQ)
red herring prospectus
20. 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.
objective theory of contracts
lien
bond
21. A person in possession of an instrument payable to bearer or indorsed in blank.
continuation statement
bearer
articles of partnership
petition in bankruptcy
22. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).
impossibility of performance
bona fide occupational qualification (BFOQ)
consent
diversity of citizenship
23. 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
securities
beyond a reasonable doubt
transfer warranties
unenforceable contract
24. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim
covenant not to compete
principle of rights
incidental damages
abandoned property
25. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.
larceny
small claims court
information return
tenancy at will
26. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.
signature
working papers
obligor
attachment
27. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj
sexual harassment
promisee
warranty deed
fiduciary
28. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.
firm offer
concurrent jurisdiction
merger
question of fact
29. 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
shrink-wrap agreement
spendthrift trust
easement
executor
30. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
duress
nominal damages
cost-benefit analysis
penalty
31. 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.
long arm statute
limited liability limited partnership (LLLP)
forum-selection clause
export
32. The power of a government to take land from private citizens for public use on the payment of just compensation.
liquidation
securities
interrogatories
eminent domain
33. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.
tender of delivery
I-9 verification
valid contract
motion for a directed verdict
34. A provision in a contract stipulating that certain unforeseen events
negotiation
force majeure clause
closed shop
insolvent
35. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.
international organization
policy
copyright
liquidation
36. 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.
tenancy by the entirety
sales contract
domain name
per capita
37. An agreement by two or more persons to carry on - as co-owners - a business for profit.
acceptance
partnership
Totten trust
contract
38. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.
e-contract
past consideration
bankruptcy court
preemptive rights
39. 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
contract
perfection
prospectus
gift inter vivos
40. Having left a will at death.
testate
peer-to-peer (P2P) networking
estate in property
option contract
41. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.
probable cause
property
tangible employment action
gift causa mortis
42. Information or processes that give a business an advantage over competitors that do not know the information or processes.
tenancy in common
estate in property
stale check
trade secret
43. A corporation whose shareholders are limited to a small group of persons - often including only family members.
question of fact
SEC Rule 10b-5
close corporation
workers' compensation laws
44. 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.
venture capital
financing statement
emancipation
general partner
45. 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.
intellectual property
generally accepted accounting principles (GAAP)
traveler's check
cybersquatting
46. 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.
sexual harassment
insurable interest
lost property
disparate-impact discrimination
47. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif
quasi contract
reply
mens rea
implied warranty of habitability
48. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.
taking
acceptance
incidental beneficiary
tenancy in common
49. Any interest in personal property or fixtures that secures payment or performance of an obligation.
expropriation
bilateral mistake
entrustment rule
security interest
50. A holder who acquires a negotiable instrument for value; in good faith; and without notice that the instrument is overdue - that it has been dishonored - that any person has a defense against it or a claim to it - or that the instrument contains unau
investment company
nonpossessory interest
executor
holder in due course (HDC)