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






2. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.






3. Under the Uniform Commercial Code Section 2-403(2) - a rule stating that if goods are entrusted to a merchant who deals in goods of that kind - the merchant has the power to transfer those goods and all rights to them to a buyer in the ordinary cours






4. Information or processes that give a business an advantage over competitors that do not know the information or processes.






5. One for whose benefit a promise is made in a contract but who is not a party to the contract.






6. An equitable remedy under which a person is restored to his or her original position prior to loss or injury - or placed in the position he or she would have been in had the breach not occurred.






7. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






8. A party to whom contractual obligations are transferred - or delegated.






9. 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.






10. A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed.

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11. A person on the board of directors who does not hold a management position at the corporation.






12. 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).






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






14. The party that is ordered to pay a draft or check. With a check - a bank or a financial institution is always the drawee.






15. A controversy that is not hypothetical or academic but real and substantial; a requirement that must be satisfied before a court will hear a case.






16. An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or - if no definite period is stated - for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be i






17. A merger between a subsidiary corporation and a parent corporation that owns at least 90 percent of the outstanding shares of each class of stock issued by the subsidiary corporation. Short-form mergers can be accomplished without the approval of the






18. The creation of an absolute or unconditional right or power.






19. 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).






20. Having left a will at death.






21. A principal whose identity is unknown by a third person - and the third person has no knowledge that the agent is acting for a principal at the time the agent and the third person form a contract.






22. 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.






23. 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.






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






25. A deed intended to pass any title - interest - or claim that the grantor may have in the property without warranting that such title is valid. A quitclaim deed offers the least amount of protection against defects in the title.






26. Any interest in personal property or fixtures that secures payment or performance of an obligation.






27. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.






28. Embezzlement; the misappropriation of funds by a party - such as a corporate officer or public official - in a fiduciary relationship with another.






29. An estate in realty held by a tenant under a lease. In every leasehold estate - the tenant has a qualified right to possess and/or use the land.






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






31. 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






32. Commonly referred to as a 'green card -' the I-551 Alien Registration Receipt is proof that a foreign-born individual is lawfully admitted for permanent residence in the United States. Persons seeking employment can prove to prospective employers tha






33. A mark used by one or more persons - other than the owner - to certify the region - materials - mode of manufacture - quality - or other characteristic of specific goods or services.






34. A person - such as a cosigner on a note - who agrees to be primarily responsible for the debt of another.






35. A contract that results when an offer can be accepted only by the offeree's performance.






36. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events






37. In the context of real property - an interest in land that does not include any right to possess the property.






38. 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.






39. In securities law - a transaction in which a person invests in a common enterprise with the reasonable expectation that profits will be derived primarily from the efforts of others.






40. A distribution to corporate shareholders of corporate profits or income - disbursed in proportion to the number of shares held.






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






42. A termination of employment brought about by making the employee's working conditions so intolerable that the employee reasonably feels compelled to leave.






43. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






44. Procedurally - a defendant's response to the plaintiff's complaint.






45. A person who makes an offer.






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






47. A person in possession of an instrument payable to bearer or indorsed in blank.






48. 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






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






50. A contract between an employer and an employee in which the terms and conditions of employment are stated.