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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. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.
license
record
will substitutes
nominal damages
2. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.
condition precedent
consignment
contractual capacity
identity theft
3. A check - other than a certified check - that is presented for payment more than six months after its date.
stale check
quasi contract
debtor
bailee
4. A party to whom contractual obligations are transferred - or delegated.
delegatee
consent
defalcation
pass-through entity
5. A type of limited liability partnership owned by family members or fiduciaries of family members.
fiduciary
administrator
quota
family limited liability partnership (FLLP)
6. The simplest form of business organization - in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.
sole proprietorship
discovery
forum-selection clause
pass-through entity
7. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins
void contract
negotiation
promisor
I-551 Alien Registration Receipt
8. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.
inter vivos trust
indorsement
predominant-factor test
revocation
9. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.
writ of attachment
valid contract
inside director
reaffirmation agreement
10. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and
alternative dispute resolution (ADR)
attachment
inside director
unreasonably dangerous product
11. A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made; may be effected through the mutual consent of the parties - by the parties' conduct - or by court decree.
defalcation
rescission
e-money
privity of contract
12. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.
implied warranty of habitability
testamentary trust
charitable trust
mortgagor
13. All forms of personal property.
consent
bailor
chattel
copyright
14. A writ from a higher court asking the lower court for the record of a case.
writ of certiorari
agreement
bearer instrument
SEC Rule 10b-5
15. An out-of-court agreement between a debtor and creditors in which the parties work out a payment plan or schedule under which the debtor's debts can be discharged.
workout
articles of incorporation
commercial impracticability
right of reimbursement
16. An employer's termination of an employee's employment in violation of the law.
seasonably
wrongful discharge
real property
executed contract
17. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.
agreement
e-signature
levy
motion for a new trial
18. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.
sale or return
entrustment rule
search warrant
litigation
19. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.
bearer instrument
due diligence
personal defenses
real property
20. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.
stock
hacker
gift inter vivos
attachment
21. 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.
venture capital
union shop
generally accepted accounting principles (GAAP)
forbearance
22. The power of a government to take land from private citizens for public use on the payment of just compensation.
burglary
eminent domain
confusion
SEC Rule 10b-5
23. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.
bilateral mistake
life estate
close corporation
rescission
24. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.
devise
promissory note
unconscionable contract or clause
creditors' composition agreement
25. A computer program that by electronic or other automated means can independently initiate an action or respond to electronic messages or data without review by an individual.
e-agent
money laundering
implied warranty of fitness for a particular purpose
trade name
26. The practice of marking a document with a date that precedes the actual date. Persons who backdate stock options are picking a date when the stock was trading at a lower price than the date of the options grant.
backdating
merchant
bailor
holding company
27. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.
private equity capital
force majeure clause
common stock
civil law system
28. A law permitting a debtor to retain the family home - either in its entirety or up to a specified dollar amount - free from the claims of unsecured creditors or trustees in bankruptcy.
homestead exemption
intangible property
debtor in possession (DIP)
warranty deed
29. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.
community property
probable cause
Totten trust
malpractice
30. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein
personal property
merchant
stock options
ethics
31. Charging an illegal rate of interest.
usury
SEC Rule 10b-5
delegation of duties
codicil
32. 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
plea bargaining
cram-down provision
intermediary bank
mislaid property
33. Information or processes that give a business an advantage over competitors that do not know the information or processes.
trade secret
cyber mark
obligor
sovereign immunity
34. An agreement by two or more persons to carry on - as co-owners - a business for profit.
bylaws
cyber crime
partnership
property
35. The number of members of a decision-making body that must be present before business may be transacted.
choice-of-law clause
testate
parent-subsidiary merger
quorum
36. Various documents that attempt to dispose of an estate in the same or similar manner as a will - such as trusts or life insurance plans.
limited liability company (LLC)
ratification
articles of organization
will substitutes
37. 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.
misdemeanor
good faith purchaser
holder
retained earnings
38. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).
maker
insurable interest
winding up
litigation
39. A written instrument giving a creditor an interest in (lien on) the debtor's real property as security for payment of a debt.
peer-to-peer (P2P) networking
independent contractor
counteroffer
mortgage
40. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.
articles of organization
international organization
motion for summary judgment
testator
41. 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
cashier's check
business judgment rule
generally accepted accounting principles (GAAP)
information return
42. An assertion that something either will or will not happen in the future.
stock
security interest
reformation
promise
43. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.
cybernotary
whistleblowing
arson
dumping
44. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.
conforming goods
white-collar crime
cybernotary
preference
45. The failure - without legal excuse - of a promisor to perform the obligations of a contract.
breach of contract
requirements contract
probable cause
preferred creditor
46. A revocable right or privilege of a person to come onto another person's land. In the context of intellectual property law - an agreement permitting the use of a trademark - copyright - patent - or trade secret for certain limited purposes.
license
parol evidence rule
deficiency judgment
outside director
47. The testimony of a party to a lawsuit or a witness taken under oath before a trial.
leasehold estate
duress
deposition
privity of contract
48. One to whom an obligation is owed.
obligee
certificate of limited partnership
defalcation
embezzlement
49. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.
attachment
intestacy laws
liquidation
forum-selection clause
50. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.
quorum
unilateral mistake
workers' compensation laws
bona fide occupational qualification (BFOQ)