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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 distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.






2. 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.






3. Law that pertains to a particular nation (as opposed to international law).






4. A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer).






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






6. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






7. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






8. A mark used by members of a cooperative - association - union - or other organization to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






9. 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.






10. 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






11. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






12. In litigation - the amount of monetary compensation awarded to a plaintiff in a civil lawsuit as damages. In the context of alternative dispute resolution - the decision rendered by an arbitrator.






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






14. A type of limited liability partnership owned by family members or fiduciaries of family members.






15. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






16. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






17. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.






18. 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






19. The act of transferring to another all or part of one's rights arising under a contract.






20. A party to whom contractual obligations are transferred - or delegated.






21. A trust created to protect the beneficiary from spending all the funds to which she or he is entitled. Only a certain portion of the total amount is given to the beneficiary at any one time - and most states prohibit creditors from attaching assets o






22. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.






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






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






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






26. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.






27. 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.






28. Within a specified time period or - if no period is specified - within a reasonable time.






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






30. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.






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






32. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.






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






34. 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.






35. One who - by use of the mails - Internet - telephone - or personal appearance - induces a maker or drawer to issue an instrument in the name of an impersonated payee. Indorsements by imposters are treated as authorized indorsements under Article 3 of






36. One licensing another (the franchisee) to use the owner's trademark - trade name - or copyright in the selling of goods or services.






37. 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.






38. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






39. An agreement that creates or provides for a security interest between the debtor and a secured party.






40. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.






41. The seizure by a government of a privately owned business or personal property for a proper public purpose and with just compensation.






42. Land and everything attached to it - such as trees and buildings.






43. A corporation whose shareholders are limited to a small group of persons - often including only family members.






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






45. A worldwide system in which foreign currencies are bought and sold.






46. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

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47. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






48. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






49. A tax on imported goods.






50. 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.