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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 right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






2. 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.






3. Private equity capital is a financing method by which a company sells equity in an existing business to a private or institutional investor.






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






5. A formal legal document prepared by a party's attorney and submitted to an appellate court when a case is appealed - which outlines the facts and issues of the case that are in dispute.






6. Rights held by shareholders that entitle them to purchase newly issued shares of a corporation's stock - equal in percentage to shares already held - before the stock is offered to any outside buyers. Preemptive rights enable shareholders to maintain






7. 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.






8. 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.






9. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.






10. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.






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






12. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






13. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






14. Any type of written - electronic - or graphic offer that describes the issuing corporation or its securities and includes a legend indicating that the investor can obtain the prospectus at the SEC's Web site.






15. The act of presenting an instrument to the party liable on the instrument to collect payment. Presentment also occurs when a person presents an instrument to a drawee for a required acceptance.






16. Terms and conditions of use that are presented to an Internet user at the time certain products - such as software - are being downloaded but that need not be agreed to (by clicking 'I agree -' for example) before the user is able to install or use t






17. A group of citizens called to decide - after hearing the state's evidence - whether a reasonable basis (probable cause) exists for believing that a crime has been committed and that a trial ought to be held.






18. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






19. A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand.






20. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.






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






22. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






23. The term used to designate a person who has an ownership interest in a limited liability company.






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






25. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






26. A specific type of investment company that continually buys or sells to investors shares of ownership in a portfolio.






27. A person to whom a promise is made.






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






29. Barred - impeded - or precluded.






30. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.






31. 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.






32. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






33. 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.






34. 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.






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






36. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






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






38. A written - temporary insurance policy.






39. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.






40. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






41. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p






42. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






43. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.






44. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






45. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






46. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






47. A party that holds a lien that is subordinate to one or more other liens on the same property.






48. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






49. A Latin term meaning 'by the roots.' In estate law - a method of distributing an intestate's estate so that each heir in a certain class (such as grandchildren) takes the share to which her or his deceased ancestor (such as a mother or father) would






50. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con