Test your basic knowledge |

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 qualification - provision - or clause in a contractual agreement - the occurrence or nonoccurrence of which creates - suspends - or terminates the obligations of the contracting parties.






2. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.






3. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






4. A person in possession of an instrument payable to bearer or indorsed in blank.






5. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






6. Property resulting from intellectual - creative processes.






7. 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






8. A contract in which the terms of the agreement are stated in words - oral or written.






9. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






10. The process of resolving a dispute through the court system.






11. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.






12. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.






13. A state law providing that employees may not be required to join a union as a condition of retaining employment.






14. A person who makes a promise.






15. 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.






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






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






18. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






19. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






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






21. 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.






22. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






23. 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.






24. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.






25. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






26. The intentional burning of another's dwelling. Some statutes have expanded this to include any real property regardless of ownership and the destruction of property by other means






27. A prediction concerning potential loss based on known and unknown factors.






28. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






29. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






30. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






31. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.






32. 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






33. Any interest in personal property or fixtures that secures payment or performance of an obligation.






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






35. 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.






36. A contract that has been completely performed by both parties.






37. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






38. 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.






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






40. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






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






42. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.






43. The passing of title to property from the seller to the buyer for a price.






44. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.






45. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






46. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).






47. A contract in which one party forfeits the right to pursue a legal claim against the other party.






48. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






49. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.






50. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.