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






2. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






3. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be






4. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






5. 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.






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






7. 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






8. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






9. In most states - a rule stating that express authority given to an agent must be in writing if the contract to be made on behalf of the principal is required to be in writing.






10. The resolution of disputes with the assistance of organizations that offer dispute-resolution services via the Internet.






11. The portion of a corporation's profits that has not been paid out as dividends to shareholders.






12. An interest either in a person's life or well-being or in property that is sufficiently substantial that insuring against injury to (or the death of) the person or against damage to the property does not amount to a mere wagering (betting) contract.






13. 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.






14. 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.






15. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






16. One receiving a license to use another's (the franchisor's) trademark - trade name - or copyright in the sale of goods and services.






17. In Chapter 11 bankruptcy proceedings - a debtor who is allowed to continue in possession of the estate in property (the business) and to continue business operations.






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






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






20. Charging an illegal rate of interest.






21. In a given state - a corporation that does business in - and is organized under the law of - that state.






22. Implied warranties - made by any person who transfers an instrument for consideration to subsequent transferees and holders who take the instrument in good faith - that (1) the transferor is entitled to enforce the instrument; (2) all signatures are






23. In a jury trial - a motion for the judge to take the decision out of the hands of the jury and to direct a verdict for the party who filed the motion on the ground that the other party has not produced sufficient evidence to support her or his claim.






24. A person to whom a promise is made.






25. 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.






26. The act of stealing another's identifying information






27. The authority of a court to hear and decide a specific case.






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






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






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






31. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






32. An implied promise by a landlord that rented residential premises are fit for human habitation






33. The unlawful entry or breaking into a building with the intent to commit a felony (or any crime - in some states).






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






35. 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.






36. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






37. 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.






38. The acquisition of title to real property by occupying it openly - without the consent of the owner - for a period of time specified by a state statute. The occupation must be actual - open - notorious - exclusive - and in opposition to all others -






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






40. 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






41. An offer to purchase made by one company directly to the shareholders of another (target) company; sometimes referred to as a takeover bid.






42. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






43. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






44. 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.






45. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






46. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).






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






48. 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






49. Mental state - or intent. A wrongful mental state is as necessary as a wrongful act to establish criminal liability. What constitutes a mental state varies according to the wrongful action. Thus - for murder - the mens rea is the intent to take a lif






50. In contract law - a voluntary act by the offeree that shows assent - or agreement - to the terms of an offer; may consist of words or conduct. In negotiable instruments law - the drawee's signed agreement to pay a draft when it is presented.