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Test your basic knowledge |
Business Law Fundamentals
Start Test
Study First
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 contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.
mitigation of damages
motion to dismiss
sales contract
national law
2. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.
trade secret
takeover
drawee
mortgage
3. A contract that does not require a specified form or formality to be valid.
bond
condition
leasehold estate
informal contract
4. 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.
entrapment
grand jury
summons
voir dire
5. The fraudulent appropriation of funds or other property by a person to whom the funds or property has been entrusted.
deposition
motion for judgment n.o.v.
embezzlement
tenancy in common
6. 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
voir dire
underwriter
bailor
valid contract
7. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.
collateral promise
acceleration clause
bearer
policy
8. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.
tenancy by the entirety
sale or return
gift
security agreement
9. 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.
I-9 verification
specific performance
undisclosed principal
liquidated damages
10. A written promise made by one person (the maker) to pay a fixed amount of money to another person (the payee or a subsequent holder) on demand or on a specified date.
promissory note
lost property
breach of contract
acceptor
11. 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
red herring prospectus
community property
order instrument
motion for judgment n.o.v.
12. 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.
acceptance
mens rea
motion for judgment n.o.v.
distributed network
13. The testimony of a party to a lawsuit or a witness taken under oath before a trial.
sexual harassment
burglary
deposition
tender of delivery
14. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
arbitration clause
traveler's check
national law
restitution
15. 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
lessee
destination contract
arson
ratification
16. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and
question of fact
pleadings
apparent authority
attachment
17. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.
limited partnership
interrogatories
forum-selection clause
summary jury trial (SJT)
18. In criminal law - a defense in which the defendant claims that he or she was induced by a public official
entrapment
penalty
insider trading
forum-selection clause
19. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'
beyond a reasonable doubt
constructive delivery
petition in bankruptcy
stock certificate
20. One who makes and executes a will.
testator
promissory estoppel
service mark
past consideration
21. 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.
consolidation
motion for a directed verdict
record
market-share liability
22. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.
third party beneficiary
stock certificate
adverse possession
self-defense
23. The termination of an obligation. In contract law - discharge occurs when the parties have fully performed their contractual obligations or when other events occur that release the parties from performance. In bankruptcy proceedings - discharge is th
answer
cyber mark
constructive delivery
discharge
24. 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.
summons
promissory estoppel
business judgment rule
rescission
25. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.
limited partnership
I-551 Alien Registration Receipt
motion for summary judgment
pass-through entity
26. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
insider trading
information
frustration of purpose
implied warranty of fitness for a particular purpose
27. A person who makes an offer.
offeror
preference
power of attorney
collateral promise
28. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a
consumer-debtor
plea bargaining
fee simple absolute
payee
29. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.
traveler's check
gift inter vivos
assignment
release
30. A legally recognized authority that can certify the validity of digital signatures.
independent contractor
summary jury trial (SJT)
search warrant
cybernotary
31. The term used to designate a person who has an ownership interest in a limited liability company.
counteroffer
stop-payment order
treaty
member
32. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea
signature
tariff
consequential damages
concurrent jurisdiction
33. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.
tangible property
security agreement
debtor in possession (DIP)
moral minimum
34. A gift of personal property by will (from the verb to bequeath).
bequest
sales contract
piercing the corporate veil
fixture
35. 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.
embezzlement
fiduciary
comity
disclosed principal
36. 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.
pass-through entity
sublease
devisee
domain name
37. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be
affirmative action
quitclaim deed
collateral promise
agreement
38. Property with which the owner has voluntarily parted and then cannot find or recover.
sovereign immunity
family limited liability partnership (FLLP)
promissory estoppel
mislaid property
39. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.
penalty
output contract
partially disclosed principal
sexual harassment
40. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.
pledge
reply
express warranty
maker
41. 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.
treaty
indictment
dishonor
whistleblowing
42. One designated in a will to receive a gift of real property.
formal contract
probate
devisee
mechanic's lien
43. 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.
deposition
robbery
Totten trust
crime
44. 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.
extension clause
standing to sue
writ of certiorari
apparent authority
45. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ
franchisor
self-incrimination
recording statutes
accord and satisfaction
46. All forms of personal property.
chattel
self-defense
sale
tenancy by the entirety
47. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.
bilateral mistake
concurrent ownership
trade dress
holder
48. 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
preemptive rights
cost-benefit analysis
bearer
lessor
49. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein
merchant
executed contract
voir dire
order for relief
50. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.
computer crime
alternative dispute resolution (ADR)
periodic tenancy
prima facie case