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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 person to whom an offer is made.






2. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






3. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






4. A group of persons protected by specific laws because of the group's defining characteristics. Under laws prohibiting employment discrimination - these characteristics include race - color - religion - national origin - gender - age - and disability.






5. The conventions - rules - and procedures that define accepted accounting practices at a particular time. The source of the principles is the Financial Accounting Standards Board.






6. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






7. A debt for which the amount has been ascertained - fixed - agreed on - settled - or exactly determined. If the amount of the debt is in dispute - the debt is considered unliquidated.






8. In insurance law - a contract between the insurer and the insured in which - for a stipulated consideration - the insurer agrees to compensate the insured for loss on a specific subject by a specified peril.






9. A contract that results when an offer can be accepted only by the offeree's performance.






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






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






12. The testimony of a party to a lawsuit or a witness taken under oath before a trial.






13. All forms of personal property.






14. A check drawn by a bank on itself.

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15. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.






16. A person who makes a promise.






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






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






19. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






20. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h






21. The acquisition of control over a corporation through the purchase of a substantial number of the voting shares of the corporation.






22. 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.






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






24. A crime committed on the Internet.






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






26. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.






27. 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






28. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.






29. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






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






31. Implied warranties - made by any person who presents an instrument for payment or acceptance - that (1) the person obtaining payment or acceptance is entitled to enforce the instrument or is authorized to obtain payment or acceptance on behalf of a p






32. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.






33. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.






34. Embezzlement; the misappropriation of funds by a party - such as a corporate officer or public official - in a fiduciary relationship with another.






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






36. A written instrument - usually issued by a bank on behalf of a customer or other person - in which the issuer promises to honor drafts or other demands for payment by third persons in accordance with the terms of the instrument.






37. Having left a will at death.






38. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.






39. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






40. 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.






41. 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.






42. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






43. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.






44. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






45. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.






46. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.






47. A provision in a contract stipulating that certain unforeseen events






48. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the






49. A contract having no legal force or binding effect.






50. The goods and services that domestic firms sell to buyers located in other countries.