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






2. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






3. The act of refraining from an action that one has a legal right to undertake.






4. 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






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






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






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






8. In a limited partnership - a partner who assumes responsibility for the management of the partnership and liability for all partnership debts.






9. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






10. 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






11. 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.






12. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






13. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






14. Procedurally - a plaintiff's response to a defendant's answer.






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






16. A will written entirely in the signer's handwriting and usually not witnessed.






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






18. A person who receives inside information.






19. A guilty (prohibited) act. The commission of a prohibited act is one of the two essential elements required for criminal liability - the other element being the intent to commit a crime.






20. Shares of ownership in a corporation that give the owner of the stock a proportionate interest in the corporation with regard to control - earnings - and net assets. Shares of common stock are lowest in priority with respect to payment of dividends a






21. 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.






22. The relationship that exists between the promisor and the promisee of a contract.






23. 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.






24. 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.






25. In insurance law - the insurer - or the one assuming a risk in return for the payment of a premium.






26. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

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27. A clause that releases a contractual party from liability in the event of monetary or physical injury - no matter who is at fault.






28. Statements made by the plaintiff and the defendant in a lawsuit that detail the facts - charges - and defenses involved in the litigation. The complaint and answer are part of the pleadings.






29. All forms of personal property.






30. The number of members of a decision-making body that must be present before business may be transacted.






31. A doctrine under which a party to a contract is relieved of her or his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party).






32. The right of a co-surety who pays more than her or his proportionate share on a debtor's default to recover the excess paid from other co-sureties.






33. The last part of an Internet address - such as 'westlaw.edu.' The top level (the part of the name to the right of the period) indicates the type of entity that operates the site ('edu' is an abbreviation for 'educational'). The second level (the part






34. 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






35. A written supplement or modification to a will. A codicil must be executed with the same formalities as a will.






36. Under the UCC - 'any symbol executed or adopted by a party with a present intention to authenticate a writing.'






37. A landlord's act of depriving a tenant of possession of the leased premises.






38. 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.






39. Under Article 9 of the UCC - whatever is received when collateral is sold or otherwise disposed of - such as by exchange.






40. Occurs when an individual adds value to personal property by the use of either labor or materials. In some situations - a person may acquire ownership rights in another's property through accession.






41. The document filed with a designated state official by which a limited liability company is formed.






42. The document filed with the appropriate governmental agency - usually the secretary of state - when a business is incorporated. State statutes usually prescribe what kind of information must be contained in the articles of incorporation.






43. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






44. The process by which a criminal defendant and the prosecutor in a criminal case work out a mutually satisfactory disposition of the case - subject to court approval; usually involves the defendant's pleading guilty to a lesser offense in return for a






45. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






46. Damages awarded to compensate for reasonable expenses that are directly incurred because of a breach of contract






47. A preliminary prospectus that can be distributed to potential investors after the registration statement (for a securities offering) has been filed with the Securities and Exchange Commission. The name derives from the red legend printed across the p






48. A provision in a contract stipulating that certain unforeseen events






49. Treating employees or job applicants unequally on the basis of race - color - national origin - religion - gender - age - or disability; prohibited by federal statutes.






50. Standards concerning an auditor's professional qualities and the judgment exercised by him or her in the performance of an audit and report. The source of the standards is the American Institute of Certified Public Accountants.