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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 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






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






3. Any voluntary transfer of property made without consideration - past or present.






4. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






5. 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.






6. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.






7. The process of taking private property for public use through the government's power of eminent domain.






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






9. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






10. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






11. 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.






12. The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by filing a financing statement with the appropriate governm






13. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






14. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






15. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






16. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






17. A contract that does not require a specified form or formality to be valid.






18. A crime






19. 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






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






21. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






22. A tax return submitted by a partnership that only reports the income and losses earned by the business. The partnership as an entity does not pay taxes on the income received by the partnership. A partner's profit from the partnership (whether distri






23. Legal responsibility placed on one person for the acts of another; indirect liability imposed on a supervisory party (such as an employer) for the actions of a subordinate (such as an employee) because of the relationship between the two parties.






24. 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






25. 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.






26. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.






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






28. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






29. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






30. A significant change in employment status - such as a change brought about by firing or failing to promote an employee - reassigning the employee to a position with significantly different responsibilities - or effecting a significant change in emplo






31. A judgment against a debtor for the amount of a debt remaining unpaid after the collateral has been repossessed and sold.






32. The act of stealing another's identifying information






33. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.






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






35. Property with which the owner has involuntarily parted and then cannot find or recover.






36. 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.






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






38. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






39. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.






40. A statutory lien on the real property of another - created to ensure payment for work performed and materials furnished in the repair or improvement of real property - such as a building.

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41. In the context of real property - an interest in land that does not include any right to possess the property.






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






43. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ






44. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






45. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






46. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.






47. A trust that is created by will and therefore does not take effect until the death of the testator.






48. 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.






49. 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.






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