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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 contractual clause that states that a certain amount of monetary damages will be paid in the event of a future default or breach of contract. The damages are a punishment for a default and not a measure of compensation for the contract's breach. Th






2. A method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.






3. 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






4. A contract that does not require a specified form or formality to be valid.






5. 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.






6. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods






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






8. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.






9. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






10. Under the UCC - a remedy that allows the buyer or lessee - on the seller's or lessor's breach - to purchase goods from another seller or lessor and substitute them for the goods due under the contract. If the cost of cover exceeds the cost of the con






11. A type of tenancy under which a tenant who - after rightfully being in possession of leased premises - continues (wrongfully) to occupy the property after the lease has terminated. The tenant has no rights to possess the property and occupies it only






12. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.






13. 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.






14. A situation in which the personal property of one person (a bailor) is entrusted to another (a bailee) - who is obligated to return the bailed property to the bailor or dispose of it as directed.






15. State laws that regulate the offering and sale of securities.






16. A contract that has not as yet been fully performed.






17. In regard to employment relationships - a system in which those who have worked longest for the employer are first in line for promotions - salary increases - and other benefits. They are also the last to be laid off if the workforce must be reduced.






18. A contract that results when the elements necessary for contract formation (agreement - consideration - legal purpose - and contractual capacity) are present.






19. The power of a government to take land from private citizens for public use on the payment of just compensation.






20. As a noun - one who has died without having created a valid will; as an adjective - the state of having died without a will.






21. Property with which the owner has involuntarily parted and then cannot find or recover.






22. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






23. An action to carry into effect the directions in a court decree or judgment.






24. The sharing of resources (such as files - hard drives - and processing styles) among multiple computers without necessarily requiring a central network server.






25. Jurisdiction that exists when two different courts have the power to hear a case. For example - some cases can be heard in a federal or a state court.






26. A note issued by a bank in which the bank acknowledges the receipt of funds from a party and promises to repay that amount - with interest - to the party on a certain date.






27. Generally - the value given in return for a promise; involves two elements






28. One who makes and executes a will.






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






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






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






32. The selling of goods in a foreign country at a price below the price charged for the same goods in the domestic market.






33. A person who acquires the right to the possession and use of another's goods in exchange for rental payments.






34. The legally recognized privilege to protect oneself or one's property against injury by another. The privilege of self-defense usually applies only to acts that are reasonably necessary to protect oneself - one's property - or another person.






35. 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






36. An equitable remedy requiring exactly the performance that was specified; usually granted only when monetary damages would be an inadequate remedy and the subject matter of the contract is unique.






37. An agreement formed between a debtor and his or her creditors in which the creditors agree to accept a lesser sum than that owed by the debtor in full satisfaction of the debt.

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38. 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.






39. Property that has physical existence and can be distinguished by the senses of touch or sight. A car is tangible property; a patent right is intangible property.






40. Goods that conform to contract specifications.






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






42. The process of resolving a dispute through the court system.






43. 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.






44. A defense to allegations of employment discrimination in which the employer demonstrates that an employment practice that discriminates against members of a protected class is related to job performance.






45. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






46. Barred - impeded - or precluded.






47. 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.






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






49. A type of tenancy under which property is leased for a specified period of time - such as a month - a year - or a period of years; also called a tenancy for years.






50. A check that is paid by the bank when the checking account on which the check is written contains insufficient funds to cover the check.