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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. Classes of stock that have priority over common stock as to both payment of dividends and distribution of assets on the corporation's dissolution.






2. The law that governs relations among nations. National laws - customs - treaties - and international conferences and organizations are generally considered to be the most important sources of international law.






3. 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






4. A rule under which a court will not receive into evidence the parties' prior negotiations - prior agreements - or contemporaneous oral agreements if that evidence contradicts or varies the terms of the parties' written contract.






5. An agreement that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






6. A party who transfers (assigns) his or her rights under a contract to another party (called the assignee).






7. A contract that does not require a specified form or formality to be valid.






8. The creation of an absolute or unconditional right or power.






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






10. 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.'






11. A negotiable instrument is dishonored when payment or acceptance of the instrument - whichever is required - is refused even though the instrument is presented in a timely and proper manner.






12. 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.






13. A warranty that goods being sold or leased are reasonably fit for the general purpose for which they are sold or leased - are properly packaged and labeled - and are of proper quality. The warranty automatically arises in every sale or lease of goods






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






15. In product liability law - a product that is defective to the point of threatening a consumer's health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dan






16. 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).






17. Co-ownership of property in which each party owns an undivided interest that passes to her or his heirs at death.






18. Falsely reporting income that has been obtained through criminal activity as income obtained through a legitimate business enterprise






19. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.






20. Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.






21. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.






22. The pleading made by a plaintiff alleging wrongdoing on the part of the defendant; the document that - when filed with a court - initiates a lawsuit.






23. A person on the board of directors who is also an officer of the corporation.






24. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.






25. The exclusive right of an author or originator of a literary or artistic production (including computer programs) to publish - print - or sell that production for a statutory period of time.






26. One who makes and executes a will.






27. An action to recover identified goods in the hands of a party who is wrongfully withholding them from the other party. Under the UCC - this remedy is usually available only if the buyer or lessee is unable to cover.






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






29. 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.






30. A document by which title to property (usually real property) is passed.






31. 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.






32. The goods and services that domestic firms sell to buyers located in other countries.






33. 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






34. The right of a person to stand in the place of (be substituted for) another - giving the substituted party the same legal rights that the original party had.






35. 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






36. An action to carry into effect the directions in a court decree or judgment.






37. A common law security device (retained in Article 9 of the UCC) in which personal property is transferred into the possession of the creditor as security for the payment of a debt and retained by the creditor until the debt is paid.






38. A written - temporary insurance policy.






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






40. A government grant that gives an inventor the exclusive right or privilege to make - use - or sell his or her invention for a limited time period.






41. Under Article III - Section 2 - of the U.S. Constitution - a basis for federal district court jurisdiction over a lawsuit between (1) citizens of different states - (2) a foreign country and citizens of a state or of different states - or (3) citizen






42. The term used to designate a person who has an ownership interest in a limited liability company.






43. 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






44. Under a mortgage agreement - the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.






45. One to whom an obligation is owed.






46. Ownership rights in property - including the right to possess and control the property.






47. A warranty that arises by law because of the circumstances of a sale - rather than by the seller's express promise.






48. A network that can be used by persons located (distributed) around the country or the globe to share computer files.






49. A relationship between two parties in which one party (the agent) agrees to represent or act for the other (the principal).






50. The act of stealing another's identifying information