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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 person who acquires the right to the possession and use of another's goods in exchange for rental payments.






2. Generally - a stock certificate - bond - note - debenture - warrant - or other document or record evidencing an ownership interest in a corporation or a promise to repay a corporation's debt.






3. The principle that human beings have certain fundamental rights (to life - freedom - and the pursuit of happiness - for example). Those who adhere to this 'rights theory' believe that a key factor in determining whether a business decision is ethical






4. A principal whose identity is unknown by a third party - but the third party knows that the agent is or may be acting for a principal at the time the agent and the third party form a contract.






5. The first bank to receive a check for payment.






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






7. Prior conduct between the parties to a contract that establishes a common basis for their understanding.






8. A required standard of care that certain professionals - such as accountants - must meet to avoid liability for securities violations.






9. 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.






10. A distinctive mark - motto - device - or emblem that a manufacturer stamps - prints - or otherwise affixes to the goods it produces so that they may be identified on the market and their origins made known. Once a trademark is established (under the






11. 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






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






13. Necessities required for life - such as food - shelter - clothing - and medical attention; may include whatever is believed to be necessary to maintain a person's standard of living or financial and social status.






14. The obtaining of funds by legal process through the seizure and sale of nonsecured property - usually done after a writ of execution has been issued.






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






16. Having left a will at death.






17. The image and overall appearance of a product






18. A third party for whose benefit a contract is formed. An intended beneficiary can sue the promisor if such a contract is breached.






19. Generally - stock certificates - bonds - notes - debentures - warrants - or other documents given as evidence of an ownership interest in a corporation or as a promise of repayment by a corporation.






20. 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.






21. A court-ordered correction of a written contract so that it reflects the true intentions of the parties.






22. The bank on which a check is drawn (the drawee bank).






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






24. One who makes and executes a will.






25. A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer.






26. A lease executed by the lessee of real estate to a third person - conveying the same interest that the lessee enjoys but for a shorter term than that held by the lessee.






27. An agreement that arises when a buyer - engaging in a transaction on a computer - indicates assent to be bound by the terms of an offer by clicking on a button that says - for example - 'I agree'; sometimes referred to as a click-on license or a clic






28. 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.






29. Ethics in a business context; a consensus as to what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.






30. A deed in which the grantor assures (warrants to) the grantee that the grantor has title to the property conveyed in the deed - that there are no encumbrances on the property other than what the grantor has represented - and that the grantee will enj






31. In a limited partnership - a partner who contributes capital to the partnership but has no right to participate in the management and operation of the business. The limited partner assumes no liability for partnership debts beyond the capital contrib






32. A prediction concerning potential loss based on known and unknown factors.






33. Property with which the owner has voluntarily parted - with no intention of recovering it.






34. A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered.






35. The process of resolving a dispute through the court system.






36. A court-created doctrine under which a party to a contract will be relieved of her or his duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).






37. A party to whom contractual obligations are transferred - or delegated.






38. Failure to observe a promise or discharge an obligation; commonly used to refer to failure to pay a debt when it is due.






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






40. Property with which the owner has voluntarily parted and then cannot find or recover.






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






42. A doctrine that immunizes foreign nations from the jurisdiction of U.S. courts when certain conditions are satisfied.






43. The use of an asset that is not the subject of a loan to collateralize that loan.






44. A clause in a contract designating the official language by which the contract will be interpreted in the event of a future disagreement over the contract's terms.






45. 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.






46. 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.






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






48. 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.






49. 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.






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