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






2. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.






3. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






4. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






5. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






6. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.






7. Any person in possession of an instrument drawn - issued - or indorsed to him or her - to his or her order - to bearer - or in blank.






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






9. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






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






11. 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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12. Generally - the value given in return for a promise; involves two elements






13. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






14. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






15. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






16. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






17. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






18. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






19. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.






20. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






21. 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.






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






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






24. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






25. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h






26. An individual whose debts are primarily consumer debts (debts for purchases made primarily for personal - family - or household use).






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






28. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






29. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






30. 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.






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






32. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






33. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.






34. A term that is used to indicate part or all of a business's name and that is directly related to the business's reputation and goodwill. Trade names are protected under the common law (and under trademark law - if the name is the same as the firm's t






35. A tax on imported goods.






36. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.






37. The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch.






38. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






39. A crime






40. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






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






42. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t






43. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv






44. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






45. A company whose business activity is holding shares in another company.






46. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






47. Any bank handling an item for collection - except the payor bank.






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






49. 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.






50. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.