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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. A set of policies or procedures affecting the way a corporation is directed or controlled.






2. One who owes an obligation to another.






3. An encumbrance on a property to satisfy a debt or protect a claim for payment of a debt.






4. The giving of testimony that may subject the testifier to criminal prosecution. The Fifth Amendment to the Constitution protects against self-incrimination by providing that no person 'shall be compelled in any criminal case to be a witness against h






5. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






6. A contract between the issuer of a bond and the bondholder.






7. 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






8. A person who receives inside information.






9. A contractual promise of one party to refrain from conducting business similar to that of another party for a certain period of time and within a specified geographic area. Courts commonly enforce such covenants if they are reasonable in terms of tim






10. 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






11. All costs resulting from a breach of contract - including all reasonable expenses incurred because of the breach.






12. One who entrusts goods to a bailee.






13. The image and overall appearance of a product






14. A 'standard-form' contract - such as that between a large retailer and a consumer - in which the stronger party dictates the terms.






15. Defenses that are valid against all holders of a negotiable instrument - including holders in due course (HDCs) and holders with the rights of HDCs.






16. An act that takes place before the contract is made and that ordinarily - by itself - cannot be consideration for a later promise to pay for the act.






17. Property that is movable; any property that is not real property.






18. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






19. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






20. The first bank to receive a check for payment.






21. An order granted by a public authority - such as a judge - that authorizes law enforcement personnel to search a particular premise or property.






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






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






24. The threshold mental capacity required by law for a party who enters into a contract to be bound by that contract.






25. According to the Uniform Electronic Transactions Act - information that is either inscribed on a tangible medium or stored in an electronic or other medium and is retrievable.






26. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






27. A rule requiring a plaintiff to do whatever is reasonable to minimize the damages caused by the defendant.






28. 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.






29. The standard of proof used in criminal cases. If there is any reasonable doubt that a criminal defendant committed the crime with which she or he has been charged - then the verdict must be 'not guilty.'






30. A contract or clause that is void on the basis of public policy because one party - as a result of disproportionate bargaining power - is forced to accept terms that are unfairly burdensome and that unfairly benefit the dominating party.






31. A close business corporation that has met certain requirements set out in the Internal Revenue Code and thus qualifies for special income tax treatment. Essentially - an S corporation is taxed the same as a partnership - but its owners enjoy the priv






32. The purchase or sale of securities on the basis of inside information (information that has not been made available to the public).






33. The document that is filed with a bankruptcy court to initiate bankruptcy proceedings. The official forms required for a petition in bankruptcy must be completed accurately - sworn to under oath - and signed by the debtor.






34. A secondary promise that is ancillary (subsidiary) to a principal transaction or primary contractual relationship - such as a promise made by one person to pay the debts of another if the latter fails to perform. A collateral promise normally must be






35. A written agreement that sets forth each partner's rights and obligations with respect to the partnership.






36. In a limited liability company - an agreement in which the members set forth the details of how the business will be managed and operated. State statutes typically give the members wide latitude in deciding for themselves the rules that will govern t






37. Goods that conform to contract specifications.






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






39. State laws that regulate the offering and sale of securities.






40. As a noun - a person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking. As an adjective - a relationship founded on trust and confidence.






41. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.






42. A contract that is formed electronically.






43. A gift of personal property by will (from the verb to bequeath).






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






45. The process of taking private property for public use through the government's power of eminent domain.






46. 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.






47. 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






48. 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.






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






50. 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.