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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 method of settling disputes outside of court by using the services of a neutral third party - who acts as a communicating agent between the parties and assists them in negotiating a settlement.
risk
mediation
delegatee
bailee
2. 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.
testamentary trust
offeror
pledge
eminent domain
3. 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.
constructive delivery
testator
act of state doctrine
protected class
4. In criminal procedure - a rule under which any evidence that is obtained in violation of the accused's constitutional rights guaranteed by the Fourth - Fifth - and Sixth Amendments - as well as any evidence derived from illegally obtained evidence -
premium
estate in property
backdating
exclusionary rule
5. 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.
stock warrant
tenancy at sufferance
bilateral mistake
charitable trust
6. A person who is engaged in the purchase and sale of goods. Under the UCC - a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods bein
express contract
merchant
valid contract
certification mark
7. A status granted in an international treaty by a provision stating that the citizens of the contracting nations may enjoy the privileges accorded by either party to citizens of its NTR nations. Generally - this status is designed to establish equalit
normal trade relations (NTR) status
white-collar crime
sales contract
distributed network
8. A form of employment discrimination that results from certain employer practices or procedures that - although not discriminatory on their face - have a discriminatory effect.
disparate-impact discrimination
choice-of-language clause
crime
license
9. A legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners.
articles of incorporation
Totten trust
hot-cargo agreement
corporation
10. A company that acts on behalf of many smaller shareholders/owners by buying a large portfolio of securities and professionally managing that portfolio.
peer-to-peer (P2P) networking
white-collar crime
investment company
scienter
11. The act of forcefully and unlawfully taking personal property of any value from another. Force or intimidation is usually necessary for an act of theft to be considered robbery.
robbery
secured party
fixture
legacy
12. 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.
malpractice
garnishment
acceptor
right of subrogation
13. Any instrument drawn on a drawee that orders the drawee to pay a certain sum of money - usually to a third party (the payee) - on demand or at a definite future time.
interrogatories
record
member
draft
14. A warranty that goods sold or leased are fit for a particular purpose. The warranty arises when any seller or lessor knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the skil
implied warranty of fitness for a particular purpose
tenancy at sufferance
surety
cashier's check
15. Special damages that compensate for a loss that does not directly or immediately result from the breach (for example - lost profits). For the plaintiff to collect consequential damages - they must have been reasonably foreseeable at the time the brea
condition subsequent
consequential damages
smart card
power of attorney
16. The principle by which one nation defers to and gives effect to the laws and judicial decrees of another nation. This recognition is based primarily on respect.
discovery
duress
comity
disaffirmance
17. In the context of securities offerings - 'sophisticated' investors - such as banks - insurance companies - investment companies - the issuer's executive officers and directors - and persons whose income or net worth exceeds certain limits.
domestic corporation
fixture
identity theft
accredited investors
18. A gift made during one's lifetime and not in contemplation of imminent death - in contrast to a gift causa mortis.
deficiency judgment
administrator
confusion
gift inter vivos
19. In corporate law - a written agreement between a stockholder and another party in which the stockholder authorizes the other party to vote the stockholder's shares in a certain manner.
bailee
tender of delivery
proxy
vesting
20. The failure - without legal excuse - of a promisor to perform the obligations of a contract.
limited liability partnership (LLP)
breach of contract
merger
probate court
21. Any voluntary transfer of property made without consideration - past or present.
confusion
ratification
gift
bailor
22. The act of refraining from an action that one has a legal right to undertake.
forbearance
sovereign immunity
profit
S corporation
23. A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies.
market-share liability
counteroffer
civil law system
promissory note
24. A special court in which parties may litigate small claims (such as $5 -000 or less). Attorneys are not required in small claims courts and - in some states - are not allowed to represent the parties.
express contract
complaint
search warrant
small claims court
25. In partnership law - a doctrine under which a plaintiff may sue - and collect a judgment from - all of the partners together (jointly) or one or more of the partners separately (severally - or individually). This is true even if one of the partners s
standing to sue
family limited liability partnership (FLLP)
holder in due course (HDC)
joint and several liability
26. Voluntary agreement to a proposition or an act of another; a concurrence of wills.
search warrant
lease agreement
consent
vesting
27. 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.
cram-down provision
past consideration
co-surety
nuncupative will
28. 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
abandoned property
requirements contract
negotiation
inside director
29. 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.
debtor in possession (DIP)
intangible property
alienation
disparate-impact discrimination
30. 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
acceptor
articles of organization
discharge
reaffirmation agreement
31. An advertisement - historically in a format resembling a tombstone - of a securities offering. The ad tells potential investors where and how they may obtain a prospectus.
premium
U.S. trustee
tombstone ad
expropriation
32. Property that is movable; any property that is not real property.
cover
prenuptial agreement
joint tenancy
personal property
33. Having left a will at death.
testate
e-money
implied warranty of fitness for a particular purpose
will
34. In real property law - the right to enter onto and remove things from the property of another (for example - the right to enter onto a person's land and remove sand and gravel).
profit
mortgagee
financing statement
condition
35. A government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation.
confiscation
arbitration clause
tenancy in common
watered stock
36. A clause in a contract designating the law (such as the law of a particular state or nation) that will govern the contract.
choice-of-law clause
takeover
principle of rights
Regulation E
37. A firm that requires union membership by its workers as a condition of employment. The closed shop was made illegal by the Labor-Management Relations Act of 1947.
delegatee
financing statement
closed shop
negotiation
38. An act equivalent to the actual - physical delivery of property that cannot be physically delivered because of difficulty or impossibility. For example - the transfer of a key to a safe constructively delivers the contents of the safe.
depositary bank
payor bank
constructive delivery
e-money
39. A contract between the issuer of a bond and the bondholder.
consent
bond indenture
business necessity
international law
40. Conditions that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditions are simultaneously performed.
concurrent conditions
business judgment rule
release
consideration
41. 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.
artisan's lien
prima facie case
bounty payment
pass-through entity
42. A form of concurrent ownership of property in which each spouse technically owns an undivided one-half interest in property acquired during the marriage.
S corporation
community property
domain name
employment discrimination
43. One who works for - and receives payment from - an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.
holder in due course (HDC)
conveyance
ethics
independent contractor
44. 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.
forgery
actus reus
identity theft
sexual harassment
45. The legal avoidance - or setting aside - of a contractual obligation.
retained earnings
impossibility of performance
confiscation
disaffirmance
46. An agreement that can be enforced in court; formed by two or more competent parties who agree - for consideration - to perform or to refrain from performing some legal act now or in the future.
contract
guarantor
default
tender offer
47. A clause in a contract that provides that - in the event of a dispute - the parties will submit the dispute to arbitration rather than litigate the dispute in court.
arbitration clause
general partner
cyber crime
private equity capital
48. 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.
misdemeanor
general partner
shipment contract
SEC Rule 10b-5
49. Job-hiring policies that give special consideration to members of protected classes in an effort to overcome present effects of past discrimination.
affirmative action
alien corporation
stock certificate
cybernotary
50. In the context of bankruptcy - a creditor who has received a preferential transfer from a debtor.
stale check
suretyship
cease-and-desist order
preferred creditor