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






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






3. An absolute form of property ownership entitling the property owner to use - possess - or dispose of the property as he or she chooses during his or her lifetime. On death - the interest in the property descends to the owner's heirs.






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






5. Under Article 9 of the UCC - any party who owes payment or performance of a secured obligation - whether or not the party actually owns or has rights in the collateral.






6. A worldwide system in which foreign currencies are bought and sold.






7. One to whom goods are entrusted by a bailor.






8. The failure - without legal excuse - of a promisor to perform the obligations of a contract.






9. A system or place where banks exchange checks and drafts drawn on each other and settle daily balances.






10. A gift made in contemplation of death. If the donor does not die of that ailment - the gift is revoked.






11. 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






12. The severance of the relationship between a partner and a partnership when the partner ceases to be associated with the carrying on of the partnership business.






13. Voluntary agreement to a proposition or an act of another; a concurrence of wills.






14. A certificate that evidences a corporate (or government) debt. It is a security that involves no ownership interest in the issuing entity.






15. A rule of the Securities and Exchange Commission that makes it unlawful - in connection with the purchase or sale of any security - to make any untrue statement of a material fact or to omit a material fact if such omission causes the statement to be






16. A contractual and statutory process in which one corporation (the surviving corporation) acquires all of the assets and liabilities of another corporation (the merged corporation). The shareholders of the merged corporation either are paid for their






17. An action in which a court disregards the corporate entity and holds the shareholders personally liable for corporate debts and obligations.






18. One who promises to pay a fixed amount of money to the holder of a promissory note or a certificate of deposit (CD).






19. A trust that is created by will and therefore does not take effect until the death of the testator.






20. The second of two stages in the termination of a partnership or corporation. Once the firm is dissolved - it continues to exist legally until the process of winding up all business affairs (collecting and distributing the firm's assets) is complete.






21. An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property. A court may require the owner to hold the property in trust for the person or persons who should rightfully own the pro






22. A thing that was once personal property but has become attached to real property in such a way that it takes on the characteristics of real property and becomes part of that real property.






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






24. Identifiable characteristics reasonably necessary to the normal operation of a particular business. These characteristics can include gender - national origin - and religion - but not race.






25. An agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.






26. 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.






27. An order by a bank customer to his or her bank not to pay or certify a certain check.






28. Professional misconduct or unreasonable lack of skill; the failure of a professional to use the skills and learning common to the average reputable members of the profession or the skills and learning the professional claims to possess - resulting in






29. In international law - a formal written agreement negotiated between two nations or among several nations. In the United States - all treaties must be approved by the Senate.






30. An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.






31. Any instrument that is not payable to a specific person - including instruments payable to the bearer or to 'cash.'






32. A clause in a time instrument that allows the instrument's date of maturity to be extended into the future.






33. 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.






34. As a noun - a gift of real property by will; as a verb - to make a gift of real property by will.






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






36. A contract having no legal force or binding effect.






37. In a secured transaction - the process by which a secured creditor's interest 'attaches' to the property of another (collateral) and the creditor's security interest becomes enforceable. In the context of judicial liens - a court-ordered seizure and






38. Any arrangement in which the owner of a trademark - trade name - or copyright licenses another to use that trademark - trade name - or copyright in the selling of goods or services.






39. 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.






40. A contract under which the offeror cannot revoke the offer for a stipulated time period. During this period - the offeree can accept or reject the offer without fear that the offer will be made to another person. The offeree must give consideration f






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






42. In bankruptcy proceedings - property transfers or payments made by the debtor that favor (give preference to) one creditor over others. The bankruptcy trustee is allowed to recover payments made both voluntarily and involuntarily to one creditor in p






43. Property that is acquired by the debtor after the execution of a security agreement.






44. A tax on imported goods.






45. 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






46. One to whom goods are entrusted by a bailor.






47. Under Article 9 of the UCC - the property subject to a security interest - including accounts and chattel paper that have been sold.






48. A Latin term meaning 'beyond the powers'; in corporate law - acts of a corporation that are beyond its express and implied powers to undertake.






49. A theory of sharing liability among all firms that manufactured and distributed a particular product during a certain period of time. This form of liability sharing is used only in some jurisdictions and only when the true source of the harmful produ






50. 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.