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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. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o
dissolution
chattel
tenancy by the entirety
collateral promise
2. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.
retained earnings
constructive discharge
employment contract
suretyship
3. A contract between an employer and an employee in which the terms and conditions of employment are stated.
pleadings
nuncupative will
embezzlement
employment contract
4. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.
generally accepted accounting principles (GAAP)
drawer
articles of partnership
international law
5. A state court of limited jurisdiction that conducts proceedings relating to the settlement of a deceased person's estate.
online dispute resolution (ODR)
drawer
probate court
security agreement
6. The portion of a corporation's profits that has not been paid out as dividends to shareholders.
valid contract
retained earnings
seasonably
appraisal right
7. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.
international organization
sale
sole proprietorship
debtor in possession (DIP)
8. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.
investment contract
nominal damages
secured party
motion for judgment on the pleadings
9. 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.
entrustment rule
accession
secured transaction
interrogatories
10. The act of transferring to another all or part of one's duties arising under a contract.
business judgment rule
delegation of duties
alien corporation
family limited liability partnership (FLLP)
11. Ownership rights in property - including the right to possess and control the property.
predominant-factor test
purchase-money security interest (PMSI)
license
dominion
12. 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.
disparate-impact discrimination
fiduciary
Statute of Frauds
debtor
13. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.
levy
conveyance
minimum wage
bankruptcy court
14. The act of stealing another's identifying information
categorical imperative
identity theft
assignee
working papers
15. A condition in a contract that - if not fulfilled - operates to terminate a party's absolute promise to perform.
voidable contract
interrogatories
SEC Rule 10b-5
condition subsequent
16. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.
federal question
gift causa mortis
disclosed principal
license
17. Charging an illegal rate of interest.
usury
revocation
secondary boycott
preference
18. 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.
partnership
payee
business judgment rule
petition in bankruptcy
19. 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.
operating agreement
community property
dishonor
choice-of-language clause
20. The minimum degree of ethical behavior expected of a business firm - which is usually defined as compliance with the law.
discharge
void contract
moral minimum
actus reus
21. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.
mailbox rule
outside director
intended beneficiary
e-agent
22. An agreement in which employers voluntarily agree with unions not to handle - use - or deal in other employers' goods that were not produced by union employees; a type of secondary boycott explicitly prohibited by the Labor-Management Reporting and D
hot-cargo agreement
presentment warranties
covenant not to compete
tenancy in common
23. 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
insurable interest
incidental beneficiary
service mark
forum-selection clause
24. 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.
hacker
condition
quorum
outside director
25. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.
franchisee
corporate governance
bankruptcy court
civil law system
26. 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.
disaffirmance
fictitious payee
sovereign immunity
trademark
27. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.
winding up
Federal Reserve System
prima facie case
easement
28. A person who makes an offer.
perfection
alienation
information return
offeror
29. Information or processes that give a business an advantage over competitors that do not know the information or processes.
trade secret
sole proprietorship
contract
cyberterrorist
30. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.
takeover
life estate
course of dealing
offeror
31. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.
incidental beneficiary
nominal damages
course of dealing
preference
32. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p
executory contract
sale on approval
cyber mark
preference
33. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.
void contract
drawer
performance
fungible goods
34. 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.
stock certificate
alternative dispute resolution (ADR)
fungible goods
fixed-term tenancy
35. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.
free-writing prospectus
trade name
forgery
default
36. An implied promise by a landlord that rented residential premises are fit for human habitation
outside director
pass-through entity
implied warranty of habitability
risk
37. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.
search warrant
product liability
premium
international law
38. The goods and services that domestic firms sell to buyers located in other countries.
intangible property
forgery
export
negotiable instrument
39. Any bank handling an item for collection - except the payor bank.
collecting bank
commercial impracticability
intangible property
check
40. A statement that - if filed within six months prior to the expiration date of the original financing statement - continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued
order instrument
sale or return
continuation statement
corporation
41. A will written entirely in the signer's handwriting and usually not witnessed.
delegator
mortgage
option contract
holographic will
42. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s
assignee
forbearance
venture capital
joint and several liability
43. One who entrusts goods to a bailee.
trademark
common stock
bailor
trade name
44. A trust created by the deposit of a person's own funds in his or her own name as a trustee for another. It is a tentative trust - revocable at will until the depositor dies or completes the gift in his or her lifetime by some unequivocal act or decla
entrapment
Totten trust
I-551 Alien Registration Receipt
moral minimum
45. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.
independent contractor
exculpatory clause
docket
dishonor
46. 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
summary jury trial (SJT)
forgery
insurance
investment contract
47. The taking of private property by the government for public use. The government may not take private property for public use without 'just compensation.'
hot-cargo agreement
taking
accredited investors
drawee
48. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t
nominal damages
commercial impracticability
peer-to-peer (P2P) networking
agency
49. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.
Federal Reserve System
information
complaint
trademark
50. 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
financing statement
discharge
concurrent ownership
codicil