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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. The basic document filed with a designated state official by which a limited partnership is formed.
bearer
conforming goods
promise
certificate of limited partnership
2. An action to carry into effect the directions in a court decree or judgment.
award
exclusionary rule
blue laws
execution
3. 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.
confusion
investment contract
judicial review
necessaries
4. A type of conditional sale in which the buyer may take the goods on a trial basis. The sale becomes absolute only when the buyer approves of (or is satisfied with) the goods being sold.
will substitutes
sale on approval
premium
rule of four
5. A distributorship in which the seller and the distributor of the seller's products agree that the distributor will distribute only the seller's products.
exclusive distributorship
fungible goods
order for relief
corporation
6. A party that holds a lien that is subordinate to one or more other liens on the same property.
junior lienholder
fiduciary
online dispute resolution (ODR)
stock certificate
7. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f
tangible property
option contract
homestead exemption
cyberterrorist
8. An unconditional offer to perform an obligation by a person who is ready - willing - and able to do so.
frustration of purpose
order instrument
tender
SEC Rule 10b-5
9. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical
levy
estopped
nonpossessory interest
principle of rights
10. A person appointed by a testator in a will to see that her or his will is administered appropriately.
lease agreement
executor
actus reus
intestacy laws
11. The principle that the holder of a negotiable instrument who cannot qualify as a holder in due course (HDC) - but who derives his or her title through an HDC - acquires the rights of an HDC.
acceptance
business necessity
shelter principle
treaty
12. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.
promissory note
cure
winding up
order instrument
13. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.
cram-down provision
eviction
employment discrimination
conveyance
14. A legally recognized authority that can certify the validity of digital signatures.
tenancy at sufferance
cybernotary
defalcation
tenancy by the entirety
15. The use of an asset that is not the subject of a loan to collateralize that loan.
gift
cross-collateralization
long arm statute
executed contract
16. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.
smart card
cram-down provision
ultra vires
shipment contract
17. Nonviolent crime committed by individuals or corporations to obtain a personal or business advantage.
holding company
white-collar crime
exclusive jurisdiction
securities
18. A crime
judicial review
felony
deposition
unconscionable contract or clause
19. A state statute that permits a state to obtain personal jurisdiction over nonresident defendants. A defendant must have certain 'minimum contacts' with that state for the statute to apply.
money laundering
debtor in possession (DIP)
long arm statute
promissory note
20. All employers must verify the employment eligibility and identity of any worker hired in the United States. To comply with the law - employers must complete an I-9 Employment Eligibility Verification Form for all new hires within three business days.
browse-wrap terms
I-9 verification
frustration of purpose
alternative dispute resolution (ADR)
21. A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services.
predominant-factor test
trade secret
reformation
backdating
22. A third party who incidentally benefits from a contract but whose benefit was not the reason the contract was formed. An incidental beneficiary has no rights in a contract and cannot sue to have the contract enforced.
member
incidental beneficiary
bond indenture
Regulation E
23. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein
free-writing prospectus
probate
merchant
operating agreement
24. A hacker whose purpose is to exploit a target computer for a serious impact - such as corrupting a program to sabotage a business.
hot-cargo agreement
accredited investors
collateral promise
cyberterrorist
25. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.
junior lienholder
holder
close corporation
minimum wage
26. One to whom goods are entrusted by a bailor.
acceptance
risk
quitclaim deed
bailee
27. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.
corporation
bona fide occupational qualification (BFOQ)
quota
malpractice
28. A motion requesting the court to enter a judgment without proceeding to trial. The motion can be based on evidence outside the pleadings and will be granted only if no facts are in dispute.
preferred stock
motion for summary judgment
cybersquatting
dumping
29. State laws that regulate the offering and sale of securities.
force majeure clause
blue sky laws
generally accepted accounting principles (GAAP)
dishonor
30. A firm that requires all workers - once employed - to become union members within a specified period of time as a condition of their continued employment.
domain name
condemnation
per stirpes
union shop
31. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.
shelter principle
default judgment
lease
implied warranty of habitability
32. 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.
motion for judgment on the pleadings
motion for a new trial
bearer
takeover
33. State or local laws that prohibit the performance of certain types of commercial activities on Sunday.
larceny
blue laws
risk
trade name
34. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.
disclosed principal
right of contribution
standing to sue
probate court
35. 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.
mutual fund
incidental beneficiary
sublease
insurable interest
36. Under Article 2A of the UCC - a transfer of the right to possess and use goods for a period of time in exchange for payment.
policy
security interest
lease
shipment contract
37. Mistake that occurs when one party to a contract is mistaken as to a material fact; the contract normally is enforceable.
unilateral mistake
pleadings
expropriation
right of reimbursement
38. A person to whom a promise is made.
consent
attachment
promisee
negotiation
39. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.
right of subrogation
independent contractor
summary jury trial (SJT)
garnishment
40. 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.
acceptance
sole proprietorship
special warranty deed
working papers
41. A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events
taking
agreement
foreign corporation
profit
42. A contract that has not as yet been fully performed.
trade secret
cybersquatting
executory contract
concurrent jurisdiction
43. The sale of all of the nonexempt assets of a debtor and the distribution of the proceeds to the debtor's creditors. Chapter 7 of the Bankruptcy Code provides for liquidation bankruptcy proceedings.
disaffirmance
moral minimum
liquidation
drawer
44. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
assignor
contractual capacity
installment contract
joint tenancy
45. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).
probate
delegation of duties
assignor
underwriter
46. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.
codicil
power of attorney
adhesion contract
general partner
47. A pleading in which a defendant asserts that the plaintiff's claim fails to state a cause of action (that is - has no basis in law) or that there are other grounds on which a suit should be dismissed. Although the defendant normally is the party requ
probable cause
cram-down provision
motion to dismiss
confusion
48. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.
entrustment rule
sale or return
forum-selection clause
deed
49. A clause that allows a payee or other holder of a time instrument to demand payment of the entire amount due - with interest - if a certain event occurs - such as a default in the payment of an installment when due.
acceleration clause
disparate-treatment discrimination
intended beneficiary
market-share liability
50. The list of cases entered on a court's calendar and thus scheduled to be heard by the court.
product liability
tenancy in common
duress
docket