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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 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.






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






3. In a lawsuit - an issue that involves only disputed facts - and not what the law is on a given point. Questions of fact are decided by the jury in a jury trial (by the judge if there is no jury).






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






5. A contract in which - for a stipulated consideration - one party agrees to compensate the other for loss on a specific subject by a specified peril.






6. Goods that are alike by physical nature - by agreement - or by trade usage (for example - wheat - oil - and wine that are identical in type and quality). When owners of fungible goods hold the goods as tenants in common - title and risk can pass with






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






8. The act of transferring to another all or part of one's rights arising under a contract.






9. Joint ownership.






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






11. Statutes that allow deeds - mortgages - and other real property transactions to be recorded so as to provide notice to future purchasers or creditors of an existing claim on the property.






12. 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.






13. A government official who performs certain administrative tasks that a bankruptcy judge would otherwise have to perform.






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






15. The legal right of a person to be restored - repaid - or indemnified for costs - expenses - or losses incurred or expended on behalf of another.






16. A set of governing rules adopted by a corporation or other association.






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






18. A series of written questions for which written answers are prepared by a party to a lawsuit - usually with the assistance of the party's attorney - and then signed under oath.






19. 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






20. An instrument directing what is to be done with the testator's property on his or her death - made by the testator and revocable during his or her lifetime. No interests in the testator's property pass until the testator dies.






21. 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.






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






23. 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.






24. The right of a party who tenders nonconforming performance to correct that performance within the contract period [UCC 2-508(1)].






25. Any bank to which an item is transferred in the course of collection - except the depositary or payor bank.






26. One who makes and executes a will.






27. A person who transfers the right to the possession and use of goods to another in exchange for rental payments.






28. A certificate that grants the owner the option to buy a given number of shares of stock - usually within a set time period.






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






30. An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation.






31. 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






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






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






34. A check that has been accepted in writing by the bank on which it is drawn. Essentially - the bank - by certifying (accepting) the check - promises to pay the check at the time the check is presented.






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






36. A contract that by law requires a specific form - such as being executed under seal - for its validity.






37. One designated in a will to receive a gift of real property.






38. The lowest wage - either by government regulation or union contract - that an employer may pay an hourly worker.






39. 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






40. A bank in which another bank has an account (and vice versa) for the purpose of facilitating fund transfers.






41. A court's grant of assistance to a complainant. In bankruptcy proceedings - the order relieves the debtor of the immediate obligation to pay the debts listed in the bankruptcy petition.






42. 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






43. The party that initiates a draft (such as a check) - thereby ordering the drawee to pay.






44. 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.






45. 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.






46. Any membership group that operates across national borders. These organizations can be governmental organizations - such as the United Nations - or nongovernmental organizations (NGOs) - such as the Red Cross.






47. A contract that may be legally avoided (canceled - or annulled) at the option of one or both of the parties.






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 joint surety; a person who assumes liability jointly with another surety for the payment of an obligation.






50. A motion asserting that the trial was so fundamentally flawed (because of error - newly discovered evidence - prejudice - or another reason) that a new trial is necessary to prevent a miscarriage of justice.