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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 lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






2. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






3. One who entrusts goods to a bailee.






4. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.






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






6. All forms of personal property.






7. A transaction in which an owner of goods (the consignor) delivers the goods to another (the consignee) for the consignee to sell. The consignee pays the consignor only for the goods that are sold by the consignee.






8. An agreement formed between a debtor and his or her creditors in which the creditors agree to accept a lesser sum than that owed by the debtor in full satisfaction of the debt.

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9. 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






10. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






11. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






12. A nonpossessory right to use another's property in a manner established by either express or implied agreement.






13. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.






14. An old French phrase meaning 'to speak the truth.' In legal terms - it refers to the process in which the attorneys question prospective jurors to learn about their backgrounds - attitudes - biases - and other characteristics that may affect their ab






15. 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






16. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






17. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






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






19. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.






20. 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






21. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.






22. One designated in a will to receive a gift of real property.






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






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






25. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.






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






27. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.






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






29. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).






30. Property that is acquired by the debtor after the execution of a security agreement.






31. 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.






32. 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






33. 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.






34. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






35. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






36. In bankruptcy proceedings - the suspension of virtually all litigation and other action by creditors against the debtor or the debtor's property. The stay is effective the moment the debtor files a petition in bankruptcy.






37. 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.






38. As defined by the Uniform Electronic Transactions Act - 'an electronic sound - symbol - or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.'






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. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






41. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.






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






43. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






44. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.






45. 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.






46. The idea that corporations can and should act ethically and be accountable to society for their actions.






47. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






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






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






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