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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 creation of an absolute or unconditional right or power.






2. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






3. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






4. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.






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






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






7. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






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






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






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






11. 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.






12. The act of accepting and giving legal force to an obligation that previously was not enforceable.






13. 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






14. An employer's termination of an employee's employment in violation of the law.






15. 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.






16. An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).






17. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.






18. 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.






19. 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.






20. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






21. 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






22. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






23. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part






24. 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.






25. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






26. A federal court of limited jurisdiction that handles only bankruptcy proceedings - which are governed by federal bankruptcy law.






27. The act of accepting and giving legal force to an obligation that previously was not enforceable.






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






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

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30. Jurisdiction that exists when a case can be heard only in a particular court or type of court.






31. An action to carry into effect the directions in a court decree or judgment.






32. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






33. 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






34. A gift of personal property under a will.






35. An assertion that something either will or will not happen in the future.






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






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






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






39. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






40. The basic document filed with a designated state official by which a limited partnership is formed.






41. The act of transferring to another all or part of one's duties arising under a contract.






42. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






43. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






44. Drawee that is legally obligated to pay an instrument when it is presented later for payment.






45. 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.






46. 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.






47. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






48. A set limit on the amount of goods that can be imported.






49. 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.






50. 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.