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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 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.






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






3. An agreement that creates or provides for a security interest between the debtor and a secured party.






4. A written document - which is usually notarized - authorizing another to act as one's agent; can be special (permitting the agent to do specified acts only) or general (permitting the agent to transact all business for the principal).






5. 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.






6. A contract that has been completely performed by both parties.






7. 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.






8. 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.






9. A contract that results when an offer can be accepted only by the offeree's performance.






10. 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.






11. A transfer of funds with the use of an electronic terminal - a telephone - a computer - or magnetic tape.






12. The transfer of title to land from one person to another by deed; a document (such as a deed) by which an interest in land is transferred from one person to another.






13. In criminal law - a defense in which the defendant claims that he or she was induced by a public official






14. 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.






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






16. Reasonable grounds for believing that a person should be arrested or searched.






17. State statutes establishing an administrative procedure for compensating workers' injuries that arise out of

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18. A trust in which the property held by the trustee must be used for a charitable purpose - such as the advancement of health - education - or religion.






19. A Latin term meaning 'per person.' In the law governing estate distribution - a method of distributing the property of an intestate's estate so that each heir in a certain class (such as grandchildren) receives an equal share.






20. A written contract that constitutes the final expression of the parties' agreement. If a contract is integrated - evidence extraneous to the contract that contradicts or alters the meaning of the contract in any way is inadmissible.






21. The corporation to be acquired in a corporate takeover; a corporation whose shareholders receive a tender offer.






22. State laws that regulate the offering and sale of securities.






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






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






25. A set of rules issued by the Federal Reserve System's Board of Governors to protect users of electronic fund transfer systems.






26. An employee's disclosure to government authorities - upper-level managers - or the press that the employer is engaged in unsafe or illegal activities.






27. A security interest in proceeds - after-acquired property - or collateral subject to future advances by the secured party (or all three); a security interest in collateral that is retained even when the collateral changes in character - classificatio






28. 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






29. The requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit. The plaintiff must demonstrate that he or she has been either injured or threatened with injury.






30. 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






31. One designated in a will to receive a gift of personal property.






32. In a lawsuit - an issue involving the application or interpretation of a law. Only a judge - not a jury - can rule on questions of law.






33. A trust created by the grantor (settlor) and effective during the grantor's lifetime; a trust not established by a will.






34. A motion by either party to a lawsuit at the close of the pleadings requesting the court to decide the issue solely on the pleadings without proceeding to trial. The motion will be granted only if no facts are in dispute.






35. 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






36. A judgment entered by a court against a defendant who has failed to appear in court to answer or defend against the plaintiff's claim.






37. In the context of real property - an interest in land that does not include any right to possess the property.






38. Unlawful pressure brought to bear on a person - causing the person to perform an act that she or he would not otherwise perform.






39. A card bearing a magnetic strip that holds magnetically encoded data - providing access to stored funds.






40. All forms of personal property.






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. 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






43. A written - temporary insurance policy.






44. A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination. The seller assumes liability for any losses or damage to the goods until they ar






45. The settling of a dispute by submitting it to a disinterested third party (other than a court) - who renders a decision that is (most often) legally binding.






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






47. Funds contained on computer software - in the form of secure programs stored on microchips and on other computer devices.






48. 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






49. A form of employment discrimination that results when an employer intentionally discriminates against employees who are members of protected classes.






50. A partnership consisting of one or more general partners (who manage the business and are liable to the full extent of their personal assets for debts of the partnership) and one or more limited partners (who contribute only assets and are liable onl