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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 selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






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






3. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.






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






5. Any act that is directed against computers and computer parts - that uses computers as instruments of crime - or that involves computers and constitutes abuse.






6. A written document - required by securities laws - that describes the security being sold - the financial operations of the issuing corporation - and the investment or risk attaching to the security. It is designed to provide sufficient information t






7. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.






8. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






9. The relationship that exists between the promisor and the promisee of a contract.






10. The bank on which a check is drawn (the drawee bank).






11. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






12. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






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






14. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.






15. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit






16. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






17. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






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






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






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






21. 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.






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






23. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.






24. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






25. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






26. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'






27. 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.






28. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






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






30. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl






31. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.






32. 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.






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






34. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.






35. One to whom goods are entrusted by a bailor.






36. A person to whom an instrument is made payable.






37. A joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






38. A company whose business activity is holding shares in another company.






39. 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.






40. Under the UCC - a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.






41. A certificate issued by a corporation evidencing the ownership of a specified number of shares in the corporation.






42. A form of eviction that occurs when a landlord fails to perform adequately any of the duties (such as providing heat in the winter) required by the lease - thereby making the tenant's further use and enjoyment of the property exceedingly difficult or






43. In criminal law - the least serious kind of criminal offense - such as a traffic or building-code violation.






44. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.






45. 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.






46. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






47. 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.






48. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.






49. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






50. A union's refusal to work for - purchase from - or handle the products of a secondary employer - with whom the union has no dispute - in order to force that employer to stop doing business with the primary employer - with whom the union has a labor d