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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 written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).






2. 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.






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






4. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






5. A set of policies or procedures affecting the way a corporation is directed or controlled.






6. The idea that corporations can and should act ethically and be accountable to society for their actions.






7. 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.






8. 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.






9. 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






10. 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.






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






12. Procedurally - a defendant's response to the plaintiff's complaint.






13. A type of tenancy that either party can terminate without notice; usually arises when a tenant who has been under a tenancy for years retains possession - with the landlord's consent - after the tenancy for years has terminated.






14. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.






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






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






17. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.






18. State laws that regulate the offering and sale of securities.






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






20. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.






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






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






23. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






24. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.






25. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






26. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






27. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






28. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






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






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






31. A revocable right or privilege of a person to come onto another person's land. In the context of intellectual property law - an agreement permitting the use of a trademark - copyright - patent - or trade secret for certain limited purposes.






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






33. 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.






34. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






35. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






36. All forms of personal property.






37. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






38. The resolution of disputes in ways other than those involved in the traditional judicial process. Negotiation - mediation - and arbitration are forms of ADR.






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






40. A document informing a defendant that a legal action has been commenced against him or her and that the defendant must appear in court on a certain date to answer the plaintiff's complaint.






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






42. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.






43. 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.






44. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.






45. A tax on imported goods.






46. The use of an asset that is not the subject of a loan to collateralize that loan.






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






48. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.






49. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






50. 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.