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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 common law doctrine under which either party may terminate an employment relationship at any time for any reason - unless a contract specifies otherwise.






2. A card containing a microprocessor that permits storage of funds via security programming - can communicate with other computers - and does not require online authorization for fund transfers.






3. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






4. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.






5. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.






6. Latin for 'let the master respond.' A doctrine under which a principal or an employer is held liable for the wrongful acts committed by agents or employees while acting within the course and scope of their agency or employment.






7. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






8. In regard to the lease of goods - an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.






9. In insurance law - the price paid by the insured for insurance protection for a specified period of time.






10. 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.






11. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






12. An oral will (often called a deathbed will ) made before witnesses; usually limited to transfers of personal property.






13. In regard to the sale or lease of goods - a property interest in the goods that is sufficiently substantial to permit a party to insure against damage to the goods. In the context of insurance - an interest either in a person's life or well-being tha






14. A wrong against society proclaimed in a statute and - if committed - punishable by society through fines and/or imprisonment






15. The act of accepting and giving legal force to an obligation that previously was not enforceable.






16. 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.






17. A party to whom the rights under a contract are transferred - or assigned.






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






19. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






20. In a contractual agreement - a condition that must be met before a party's promise becomes absolute.






21. Authority that is only apparent - not real. In agency law - a person may be deemed to have had the power to act as an agent for another party if the other party's manifestations to a third party led the third party to believe that an agency existed w






22. A designation in the United States for a corporation formed in another country but doing business in the United States.






23. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.






24. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






25. The various documents used and developed by an accountant during an audit - such as notes and computations - that make up the work product of an accountant's services to a client.






26. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.






27. 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






28. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






29. 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.






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






31. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.






32. 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.






33. A set limit on the amount of goods that can be imported.






34. A suit brought by a shareholder to enforce a corporate cause of action against a third person.

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35. 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.






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






37. Prepaid funds recorded on a computer or a card (such as a smart card or a stored-value card).






38. 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.






39. The legal liability of manufacturers - sellers - and lessors of goods to consumers - users - and bystanders for injuries or damages that are caused by the goods.






40. A contract between a seller and a distributor of the seller's products setting out the terms and conditions of the distributorship.






41. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






42. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.






43. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.






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






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. 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.






47. 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.






48. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






49. A contract that is formed electronically.






50. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.