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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. 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.
overdraft
I-9 verification
lease
blue sky laws
2. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.
scienter
assignment
target corporation
course of performance
3. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.
execution
indorsement
per capita
dividend
4. An implied promise by a landlord that rented residential premises are fit for human habitation
implied warranty of habitability
peer-to-peer (P2P) networking
lease
vesting
5. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.
quota
covenant not to compete
disparate-impact discrimination
necessaries
6. Moral principles and values applied to social behavior.
act of state doctrine
shipment contract
ethics
close corporation
7. A doctrine providing that the judicial branch of one country will not examine the validity of public acts committed by a recognized foreign government within its own territory.
act of state doctrine
long arm statute
cybernotary
revocation
8. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).
docket
service mark
frustration of purpose
surety
9. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.
artisan's lien
formal contract
question of law
right of contribution
10. A revocable right or privilege of a person to come onto another person's land.
mens rea
acceptance
license
document of title
11. A provision of the Bankruptcy Code that allows a court to confirm a debtor's Chapter 11 reorganization plan even though only one class of creditors has accepted it.
disclosed principal
charitable trust
dissolution
cram-down provision
12. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.
parol evidence rule
minimum wage
eviction
whistleblowing
13. A network that can be used by persons located (distributed) around the country or the globe to share computer files.
accord and satisfaction
defalcation
distributed network
incidental beneficiary
14. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).
outside director
power of attorney
binder
limited liability company (LLC)
15. A state law providing that employees may not be required to join a union as a condition of retaining employment.
venture capital
liquidation
sovereign immunity
right-to-work law
16. A writ from a higher court asking the lower court for the record of a case.
closed shop
motion for a new trial
writ of certiorari
ethical reasoning
17. 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.
offeror
summons
business necessity
foreign exchange market
18. 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
digital cash
conforming goods
order for relief
writ of execution
19. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.
click-on agreement
minimum wage
smart card
tombstone ad
20. 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.
stored-value card
debtor in possession (DIP)
limited liability partnership (LLP)
trade dress
21. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.
cyberterrorist
stale check
predominant-factor test
cost-benefit analysis
22. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
disparate-treatment discrimination
entrapment
record
reformation
23. 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.
real property
revocation
negotiation
debtor in possession (DIP)
24. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.
probate
agreement
articles of partnership
output contract
25. A network of twelve district banks and related branches located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts.
defalcation
seasonably
Federal Reserve System
inside director
26. The process of transferring land out of one's possession (thus 'alienating' the land from oneself).
breach of contract
alienation
categorical imperative
investment company
27. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
dissolution
letter of credit
contractual capacity
exclusive distributorship
28. In contract law - the fulfillment of one's duties arising under a contract with another; the normal way of discharging one's contractual obligations.
delegatee
performance
cashier's check
promise
29. The goods and services that domestic firms sell to buyers located in other countries.
export
mortgagor
security agreement
venue
30. 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.
categorical imperative
quota
certificate of deposit (CD)
contract
31. 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
lease
apparent authority
voidable contract
novation
32. A valid contract rendered unenforceable by some statute or law.
articles of incorporation
complaint
security
unenforceable contract
33. An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.
gift inter vivos
requirements contract
insider trading
seasonably
34. A merger of companies in which one company (the parent corporation) owns most of the stock of the other corporation (the subsidiary corporation). A parent-subsidiary merger (short-form merger) can use a simplified procedure when the parent corporatio
parent-subsidiary merger
sales contract
warranty deed
commingle
35. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p
employment contract
cram-down provision
Regulation E
preference
36. The mixing together of goods belonging to two or more owners so that the separately owned goods cannot be identified.
emancipation
service mark
confusion
Federal Reserve System
37. 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.
community property
tangible property
tangible employment action
red herring prospectus
38. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.
offeree
international organization
question of law
shareholder's derivative suit
39. A public official authorized to attest to the authenticity of signatures.
holding company
notary public
joint tenancy
garnishment
40. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s
joint and several liability
smart card
bailee
order for relief
41. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.
business ethics
investment company
option contract
promissory estoppel
42. An agreement to substitute a contractual obligation for some other type of legal action based on a valid claim.
covenant not to sue
implied warranty
indictment
testamentary trust
43. A person who uses one computer to break into another. Professional computer programmers refer to such persons as 'crackers.'
generally accepted accounting principles (GAAP)
order for relief
hacker
forum-selection clause
44. The use of an asset that is not the subject of a loan to collateralize that loan.
insider trading
cross-collateralization
generally accepted accounting principles (GAAP)
service mark
45. One for whose benefit a promise is made in a contract but who is not a party to the contract.
default
third party beneficiary
holographic will
negotiation
46. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.
plea bargaining
mortgagor
consolidation
bona fide occupational qualification (BFOQ)
47. The joint ownership of property by a husband and wife. Neither party can transfer her or his interest in the property without the consent of the other.
tenancy by the entirety
administrator
petty offense
will
48. 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.
security
will
winding up
ratification
49. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events
agreement
cyber mark
requirements contract
private equity capital
50. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.
extension clause
cyberterrorist
perfection
underwriter