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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 contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.






2. 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.






3. A type of limited partnership in which the liability of all of the partners - including general partners - is limited to the amount of their investments.






4. Shares of stock issued by a corporation for which the corporation receives - as payment - less than the stated value of the shares.






5. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






6. An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.






7. A person to whom an offer is made.






8. 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.






9. The right of a dissenting shareholder - who objects to an extraordinary transaction of the corporation (such as a merger or a consolidation) - to have his or her shares appraised and to be paid the fair value of those shares by the corporation.






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






11. A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.






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






13. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.






14. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.






15. A document by which title to property (usually real property) is passed.






16. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






17. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






18. A writ from a higher court asking the lower court for the record of a case.






19. A state statute under which certain types of contracts must be in writing to be enforceable.






20. 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






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






22. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






23. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






24. A trademark in cyberspace.






25. 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.






26. 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.






27. 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






28. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






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






30. Property that is acquired by the debtor after the execution of a security agreement.






31. A set of governing rules adopted by a corporation or other association.






32. 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






33. 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






34. In bankruptcy proceedings - all of the debtor's interests in property currently held - wherever located - together with certain jointly owned property - property transferred in transactions voidable by the trustee - proceeds and profits from the prop






35. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.






36. 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.






37. A phase in the litigation process during which the opposing parties may obtain information from each other and from third parties prior to trial.






38. 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






39. A person on the board of directors who is also an officer of the corporation.






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






41. An equity (ownership) interest in a corporation - measured in units of shares.






42. A hybrid form of business organization that is used mainly by professionals who normally do business in a partnership. Like a partnership - an LLP is a pass-through entity for tax purposes - but the personal liability of the partners is limited.






43. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






44. The substitution - by agreement - of a new contract for an old one - with the rights under the old one being terminated. Typically - novation involves the substitution of a new person who is responsible for the contract and the removal of the origina






45. A court's order - issued after a judgment has been entered against a debtor - directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment - accrued






46. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.






47. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.






48. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.






49. One who makes and executes a will.






50. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.