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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 written - temporary insurance policy.
binder
cure
judicial review
e-money
2. One to whom goods are entrusted by a bailor.
leasehold estate
bailee
family limited liability partnership (FLLP)
profit
3. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.
beyond a reasonable doubt
release
identity theft
default
4. An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.
Totten trust
counteroffer
clearinghouse
past consideration
5. A prediction concerning potential loss based on known and unknown factors.
dumping
risk
normal trade relations (NTR) status
estopped
6. A seller's or lessor's oral or written promise or affirmation of fact - ancillary to an underlying sales or lease agreement - as to the quality - description - or performance of the goods being sold or leased.
peer-to-peer (P2P) networking
express warranty
bequest
vicarious liability
7. State statutes that specify how property will be distributed when a person dies intestate (without a valid will); also called statutes of descent and distribution.
intestacy laws
guarantor
articles of partnership
quota
8. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.
business ethics
restitution
employment discrimination
trademark
9. A doctrine under which a party may be excused from performing a contract when (1) a contingency occurs - (2) the contingency's occurrence makes performance impracticable - and (3) the nonoccurrence of the contingency was a basic assumption on which t
private equity capital
presentment warranties
commercial impracticability
small claims court
10. In criminal law - a defense in which the defendant claims that he or she was induced by a public official
sexual harassment
shipment contract
entrapment
stock certificate
11. 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.
requirements contract
breach of contract
good faith purchaser
generally accepted accounting principles (GAAP)
12. 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.
notary public
risk
cover
acceleration clause
13. A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.
mirror image rule
accredited investors
necessaries
collective mark
14. An agreement between a debtor and a creditor in which the debtor voluntarily agrees to pay - or reaffirm - a debt dischargeable in bankruptcy. To be enforceable - the agreement must be made before the debtor is granted a discharge.
unconscionable contract or clause
reaffirmation agreement
smart card
chattel
15. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o
mortgagee
dissolution
lessor
holder in due course (HDC)
16. A formal accusation or complaint (without an indictment) issued in certain types of actions (usually criminal actions involving lesser crimes) by a government prosecutor.
electronic fund transfer (EFT)
information
will substitutes
whistleblowing
17. A contract that by law requires a specific form - such as being executed under seal - for its validity.
agency
union shop
formal contract
extension clause
18. A contract that has not as yet been fully performed.
apparent authority
quota
executory contract
cashier's check
19. 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.
sale
alienation
conveyance
winding up
20. In regard to minors - the act of being freed from parental control; occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child or when a minor who leaves home to support himself or herself.
performance
indictment
choice-of-language clause
emancipation
21. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.
long arm statute
delegatee
search warrant
fee simple
22. A deed in which the grantor warrants only that the grantor or seller held good title during his or her ownership of the property and does not warrant that there were no defects of title when the property was held by previous owners.
cost-benefit analysis
exclusive distributorship
service mark
special warranty deed
23. A claim made by a defendant in a civil lawsuit against the plaintiff. In effect - the defendant is suing the plaintiff.
counterclaim
agreement
suretyship
venture capital
24. Having left a will at death.
bond indenture
consequential damages
testate
reformation
25. 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.
novation
restitution
continuation statement
incidental damages
26. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.
preemptive rights
automatic stay
electronic fund transfer (EFT)
question of fact
27. The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another.
forgery
shrink-wrap agreement
specific performance
real property
28. Any bank handling an item for collection - except the payor bank.
wrongful discharge
negotiation
writ of certiorari
collecting bank
29. The formal disbanding of a partnership or a corporation. It can take place by (1) acts of the partners or - in a corporation - acts of the shareholders and board of directors; (2) the subsequent illegality of the firm's business; (3) the expiration o
investment company
disparate-treatment discrimination
crime
dissolution
30. Mistake that occurs when both parties to a contract are mistaken about the same material fact and the mistake is one that a reasonable person would make; either party can rescind the contract.
bilateral mistake
question of law
collective mark
consignment
31. A rule that immunizes corporate management from liability for actions that result in corporate losses or damages if the actions are undertaken in good faith and are within both the power of the corporation and the authority of management to make.
implied warranty of fitness for a particular purpose
plea bargaining
business judgment rule
appraisal right
32. A theory under which the intent to form a contract will be judged by outward - objective facts (what the party said when entering into the contract - how the party acted or appeared - and the circumstances surrounding the transaction) as interpreted
employment at will
right of contribution
objective theory of contracts
legatee
33. 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.
motion for judgment n.o.v.
overdraft
larceny
homestead exemption
34. The portion of a corporation's profits that has not been paid out as dividends to shareholders.
retained earnings
generally accepted auditing standards (GAAS)
e-money
bailor
35. 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
premium
conforming goods
bona fide occupational qualification (BFOQ)
36. An equity (ownership) interest in a corporation - measured in units of shares.
mislaid property
stock
employment contract
intestacy laws
37. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.
utilitarianism
drawer
petition in bankruptcy
contractual capacity
38. A rule providing that an acceptance of an offer becomes effective on dispatch (on being placed in an official mailbox) - if mail is - expressly or impliedly - an authorized means of communication of acceptance to the offeror.
quota
counterclaim
e-signature
mailbox rule
39. Planning that is undertaken to protect one's interest should some event threaten to undermine its security. In the context of insurance - risk management involves transferring certain risks from the insured to the insurance company.
risk management
hot-cargo agreement
necessaries
partnership
40. 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
personal defenses
discharge
rescission
holographic will
41. A fictional contract imposed on the parties by a court in the interests of fairness and justice; usually imposed to avoid the unjust enrichment of one party at the expense of another.
quasi contract
domestic corporation
objective theory of contracts
eminent domain
42. Defenses that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC.
white-collar crime
self-defense
drawer
personal defenses
43. A contractual and statutory process in which two or more corporations join to become a completely new corporation. The original corporations cease to exist - and the new corporation acquires all their assets and liabilities.
frustration of purpose
insurable interest
promisee
consolidation
44. A person to whom a promise is made.
promisee
due diligence
backdating
execution
45. The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants - his or her interest automatically passes to the surviving joint tenant(s).
executory contract
commercial impracticability
joint tenancy
secured party
46. Legally protected rights and interests in anything with an ascertainable value that is subject to ownership.
property
mediation
plea bargaining
firm offer
47. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.
moral minimum
collective mark
gift causa mortis
partnering agreement
48. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.
limited partner
revocation
mitigation of damages
adverse possession
49. A business entity that has no tax liability. The entity's income is passed through to the owners - and the owners pay taxes on the income.
restitution
mailbox rule
disaffirmance
pass-through entity
50. A question that pertains to the U.S. Constitution - acts of Congress - or treaties. A federal question provides a basis for federal jurisdiction.
limited liability company (LLC)
stock warrant
judicial review
federal question