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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. 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.






2. 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).






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






4. A provision in a contract designating the court - jurisdiction - or tribunal that will decide any disputes arising under the contract.






5. A signature placed on an instrument for the purpose of transferring one's ownership rights in the instrument.






6. The wrongful taking and carrying away of another person's personal property with the intent to permanently deprive the owner of the property. Some states classify larceny as either grand or petit - depending on the property's value.






7. A reasoning process in which an individual links his or her moral convictions or ethical standards to the particular situation at hand.






8. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






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






10. An agreement between a seller and a buyer who frequently do business with each other concerning the terms and conditions that will apply to all subsequently formed electronic contracts.






11. A type of contract that arises when a promise is given in exchange for a return promise.






12. An approach to ethical reasoning that evaluates behavior in light of the consequences of that behavior for those who will be affected by it - rather than on the basis of any absolute ethical or moral values. In utilitarian reasoning - a 'good' decisi






13. A state law providing that employees may not be required to join a union as a condition of retaining employment.






14. An employer's termination of an employee's employment in violation of the law.






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






16. A decision-making technique that involves weighing the costs of a given action against the benefits of that action.






17. 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.






18. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.






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






20. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






21. A principal whose identity is known to a third party at the time the agent makes a contract with the third party.






22. A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).






23. Under a mortgage agreement - the creditor who takes a security interest in the debtor's property.






24. The idea that corporations can and should act ethically and be accountable to society for their actions.






25. The process of proving and validating a will and settling all matters pertaining to an estate.






26. An amount - stipulated in a contract - that the parties to the contract believe to be a reasonable estimation of the damages that will occur in the event of a breach.






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






28. 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






29. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






30. 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.






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






32. A motion requesting the court to grant judgment in favor of the party making the motion on the ground that the jury's verdict against him or her was unreasonable and erroneous.






33. Any transaction in which the payment of a debt is guaranteed - or secured - by personal property owned by the debtor or in which the debtor has a legal interest.






34. The act of accepting and giving legal force to an obligation that previously was not enforceable.






35. A common means of settling a disputed claim - whereby a debtor offers to pay a lesser amount than the creditor purports is owed. The creditor's acceptance of the offer creates an accord (agreement) - and when the accord is executed - satisfaction occ






36. An implied trust arising from the conduct of the parties. A trust in which a party holds the actual legal title to another's property but only for that person's benefit.






37. Any practice or method of dealing having such regularity of observance in a place - vocation - or trade as to justify an expectation that it will be observed with respect to the transaction in question.






38. A method of settling disputes - used in many federal courts - in which a trial is held - but the jury's verdict is not binding. The verdict acts only as a guide to both sides in reaching an agreement during the mandatory negotiations that immediately






39. Any bank handling an item for collection - except the payor bank.






40. An agreement made before marriage that defines each partner's ownership rights in the other partner's property. Prenuptial agreements must be in writing to be enforceable.






41. A crime






42. A signed writing (record) that contains an unconditional promise or order to pay an exact sum on demand or at an exact future time to a specific person or order - or to bearer.






43. Under the Uniform Commercial Code - a seller's or lessor's act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessor whatever notification is reasonably necessary to enable the buyer or lessee to take deliv






44. The legal avoidance - or setting aside - of a contractual obligation.






45. The purchase or sale of securities on the basis of information that has not been made available to the public.






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






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






48. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






49. A process in which parties attempt to settle their dispute informally - with or without attorneys to represent them. In the context of negotiable instruments - the transfer of an instrument in such form that the transferee (the person to whom the ins






50. An interest in land that exists only for the duration of the life of some person - usually the holder of the estate.